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CHANGES IN THE NUiiffiBR AND SIZE Of BANKS IN
TEE UNITED STATES, 183^-1931

Material prepared for the information of the
Federal Reserve System by the
Federal Reserve Committee on
Branch, Group, and Chain Banking




Members of the Committee

E, A. Goldenweiser, Director, Division of Research and Statistics,
Federal Reserve Board, Chairman
Ira Clerk, Deputy Governor, Federal Reserve Bank of San Francisco
M. J. Fleming, Deputy Governor, Federal Reserve Bank of Cleveland
L. R. Rounds, Deputy Governor, Federal Reserve Bank of New York
E. L. Smead, Chief, Division of Bank Operations, Federal Reserve
Board

J. H. Riddle, Executive Secretary and Director of Research

The Committee was appointed February 2o, 1930. ^7 the
Federal Reserve Board
"• . .to assemble and digest information on
branch banking as practiced in the United States,
group and chain banking systems as developed in
the United States and elsewhere, the unit banking
system of the country, and the effect of ownership
of bank stocks by investment trusts and holding
corporations."

LETTER OF TRANSMITTAL

To the Federal Reserve Board:
The Committee on Branch, Group, and Chain Banking transmits
herewith a digest of statistical material with reference to changes in
the number and size of hanks in the United States during the period
1834-1931.

It compares the structure of the hanking system in 1930

with that in 1920? and for the period 1921-1931 presents classified
data describing the relative importance of certain factors of change
in the hanking structure, particularly the number of hanks newly organized, hank consolidations, bank suspensions, and voluntary liquidations.




Respectfully,

E. A. Gtoldenweiser
Chairman

CONTENTS
Page
Chapter i

Number and Geographic Distribution of Banks in the
United States
Growth of Private, State, and National Banks
Growth of Bank Resources
Member and Nonmember Banks
Geographic Distribution of Banks
Population per Bank

1
4
7
13
19
23

Chapter II

Sj.ze Distribution of Incorporated Banks
Banks Grouped by Amount of Capital Stock
Banks Grouped by Size of Loans and Investments
Size Distribution of Banks in 1920 and 1930
Comparison of State and of National Banks by Size
Geographic Distribution of Banks by Size
Loans and Investments of Banks by Size Groups
Banks Grouped by Size of Community

27
27
31
31
35
40
43
47

Chapter III

Factors of Change in the Banking Structure
Factors of Change from 1921 to 1931
Primary Organizations and Voluntary Liquidations
Conversions

51
51
58
62

Chapter IV

Consolidations
Trend in Consolidations
Number of State and National Banks Consolidated
Size of Banks Consolidated
Consolidations Involving Two or More Towns
State and National Banks Discontinued by Consolidations
State and National Banks
Geographic Distribution

63
63
67
69
71
72
72
73

Chapter V

Private Banks

75

Chapter VI

Summary

83

Appendix A

Statistical Tables

86

Appendix B

Digest of State Laws Relating to private Banks or Bankers

148

Appendix 0

Digest of Federal and State Laws Relating to Consolidation,
Merger, etc., of Banks and/or Trust Companies

261




CHAPTER I
NUMBER AND SEOGRATHIC DISTRIBUTION OF BANKS
IN THE UNITED STATES

A n o t a b l e r a t e of i n c r e a s e i n t h e number of s e p a r a t e banking e n t e r p r i s e s c h a r a c t e r i z e d t h e "banking system of t h e U n i t e d S t a t e s f o r s e v e r a l d e c ades p r i o r t o 1920.

I n 1877 t h e r e were more than 5,000 a c t i v e banks i n e x i s -

tence, including private banks.(!)

Prom 1877

t o

1921 the number grew rapidly,

and this growth was interrupted only for a few years by the severe business
depression of the 1890's.

In 1921 there were more than 30,000 banks in exis-

tence, a sixfold increase in a l i t t l e less than half a century.

More than

half of these had been organized after 1900.
During this period of rapid growth in the number of banks the
population of the nation had been growing and spreading into the s t i l l undeveloped parts of the country.

That the growth in the number of banks, how-

ever, was far in excess of the growth of population i s shown by estimates of
the population per bank.

Whereas in 1877 there was one bank for about 9.000

persons, by 1900 there was a bank for every 5,500 persons, and by 1920, one
for every 3.500 persons.
In 1921, however, the rapid growth in the number of banks was
halted.

Since that year there has been a decline as rapid and uninterrupted

as the growth during the preceding two decades.

In ten years the total number

of banks declined by about 10,000, or by one-third, leaving less than 20,000
in operation at the beginning of 1932.

The population per bank has risen

" ) In this discussion mutual savings banks have been excluded, since they
are not engaged in commercial banking. See p. 93 for sources of active
bank figures used in this chapter.







- 2 -

CHART 1

POPULATION

NUMBER Of COMMERCIAL BANKS AND TRUST COMPANIES
IN THE UNITED STATES,1634-193*
IN MILLIONS

incorporated banks are national and State banks, including
trust companies and stock savings banks. Private banks and
mutual savings banks are not included. All commercial banks
include national. State and private banks.

- 3 -

from 3,500 in 1920 to about 6,700 in the middle of 1932.
The growth and subsequent decline in the number of banks are
shown in Table 1 which gives the number of banks and the population per
bank in 1S77 &n.& "by five year periods since 1830.

Chart 1 shows the num-

ber of a l l commercial banks each year since 1S77 ana the number of incorporated banks since 1834 in comparison with the population.

The annual

figures on which the chart i s based and t h e i r sources are given in Table
I of the appendix.




Table 1 - Number of Banks and the Population per Bank in the
United States
Year
(June 30)
1S77
1880
1SS5
1S90
1295
1900
1905
1910
1915
1920
1925
1930
1931

Number of banks
IncorpoAll
rated
banks(2)
banks(2)
2,709
2,726
3,10k
5,731+
8,084
S.73S
l4,682
21,4s'6
25,3^5
28,659
27,639
23,045
21,123

5.11+1
5,299
7,l6o
10,039
12,00s
13,925
19,973
25,155
28,082
30,395
28,554
23,6^3
21,627

Population per bank(l)
IncorpoAll
rated
banks
banks
17,266
18,^3S
15,297
10,997
8,607
3,712
5,736
4,294
3,920
3,713
4,156
5,346
5,874

9,09S
9,^5
7,913
6,281
5,79^
5,467
4,217
3,66s
3,53S
3,501
4,023
5,211
5,737

(1) Population figures used were mid-year estimates as
published in the S t a t i s t i c a l Abstract of the United
States.
(2)
Incoi-porated banks include State and national banks.
All banks include State, national, and private banks,
but. exclude mutual savings banks. The precise number
of private banks in any year is unknown, and these
figures are therefore only approximately accurate.
See note to appendix Table I.

_u-

growth of P r i v a t e , State, and National Banks
In 1877 nearly half the t o t a l number of banks in the country
were p r i v a t e hanks.

At t h a t time the number of incorporated banks was

more than five times as large as i t had been in 183% when f a i r l y r e l i a b l e figures for incorporated hanks f i r s t became a v a i l a b l e .

As the

population of the country had increased fourfold between I83O and 1SS0,
however, the growth of incorporated banks had not been out of proportion.
Chart 2 gives the number of p r i v a t e banks since 1877 > the
number of national banks since IS63, and the number of State banks
since 183*+.

The figures on which the chart i s based are given in

Table I of the appendix.
P r i o r to the Civil War a l l incorporated banks were State
banks, except the F i r s t Bank of the United States and the Second 3ank
of the United S t a t e s , both of which had Federal c h a r t e r s .

Following

the inception of n a t i o n a l banking in I863, State banks were supplanted







-

6 -

CHART 2

NUMBER OF COMMERCIAL BANKS AND TRUST COMPANIES
IN THE
UNITED STATES, 1834-N31

NUMBER OF BANKS

State banks include trust companies and "stock savings banks.
Mutual savings banks are not included. Figures are as of
June 30 of each year or nearest reporting date.




- S -

and for about twenty years at l e a s t three-fourths of the incorpor a t e d "banks were under national c h a r t e r .

In the l a t t e r part of the

1880's State "banks "began to grow more rapidly than national banks,
and surpassed them in number in 1S92.

Daring the two decades from

1900 to 1920 the number of State banks was multiplied by four,
r i s i n g from about 5,000 to more than 20,000, and in 1921 they cons t i t u t e d nearly three^fourths of a l l incorporated banks.
During the period of rapid growth of State banks, private
banks were declining in importance.

After about 1907 the actual num-

ber of p r i v a t e banks declined rapidly, and there were only about 1,300
i n operation in 1921, when the t o t a l number of banks was at i t s h e i g h t .
While there ha» been a decline in the number of national
banks since 1921, the number and r a t e of decline have been f a r l e s s
than among State banks.

The number of national banks dropped about

15 per cent from 1921 to 1931, while the number of State banks declined
more than 30 per cent and the number of p r i v a t e banks, oO per c e n t .
As a r e s u l t of these changes our banking system at the end
of 1931 consisted of about 13,000 State banks and 6,1+00 national banks*




- 7-

The number of private banks was negligible. National banks thus
constituted early in 1932 nearly a third, and State banks about
two-thirds of all banks in the country.

Growth of Bank Resources
During the years of intensive growth in the number of
banks there was a comparable growth in the volume of banking business. The only figures relating to the volume of business, which
are available for the period as a whole, .are those for total resources of incorporated banks.

These figures are given in Table

I of the appendix and form the basis for Chart 3» showing the
growth of-resources of incorporated banks and trust companies
since 1263. Reliable figures for private banks for the period
are not available.
Until 1915 the resources of all incorporated banks
increased at a rate comparable to the increase in their number.
This is shown not only in Chart 3> "but also in Table 2,
giving the average amount of resources per bank




- 8 -

CHART 3
RESOURCES AND NUMBER OF INCORPORATED COMMERCIAL BANKS
AND TRUST COMPANIES IN THE UNITED STATES
„«„,„„.,.,
NUMBER Of BANKS

35000

„,/_«.
1063-1931

RESOURCES IN
BILLIONS OF DOLLARS

70

Resources and number of State and national banks, including
trust companies and stock savings banks, in the United States
each year from 1863 to 1931. Private banks and mutual savings
banks are not included. Figures are as of June 30 of each
year or nearest reporting date.




-9 -

" y five year periods since 1865. It may be noted that the average resources
b
per bank amounted to $916,000 in 1915, which is very nearly the figure for
1870.

From 1915 to 1920, however, the resources of "banks grew at a rate far

greater than the increase in numbers. In 1921 this increase was interrupted,
Taut was resumed in 1922 and continued to 1930, though the number of "banks was
declining.

Thus while the total "business of all banks continued to increase

after 1920, there has been a constantly diminishing number of banks to participate in it. Between 1920 and 1930 the number of incorporated banks decreased from 28,659 to 23,045, or 20 per cent; while their total resources
increased from $46,892,000,000 to $63,291,000,000, or 35 per cent.

Table 2 - Average Eesources per Bank
Year
State
(June 30) (000 omitted)
1865
1870
1875
1880
1885
1890
1895
1900
1905
1910
1915
1920
1925
1930
1931

$

475

620
674
741
790
611
515
674
712
605
644
1,138
1,500
2,166
2,163

National
(000 omitted)
$

871

971
922
980
901
879
934
1,272
1,293
1,386
1,552
2,916
3,017
4,012
4,059

State and
national
(000 omitted)
$

787

912
867
923
870
774
708
952
936
865
916
1,635
1,943
2,746
2,773

- 10 -

CHART 4
RESOURCES AND NUMBER OF STATE BANKS IN THE UNITED STATES
RESOURCES IN
1863 - m i
NUMBER OF BANKS
BILLIONS OF DOLLARS
25,000




30

Resources and number of State banks. Including trust companies and stock savings banks, in the United States each
year from 1863 to 1931. Private banks and mutual savings
banks are not included. Figures are as of June 30 of each
year or nearest reporting date.




- 11 -

CHART 5
RESOURCES AND NUMBER OF NATIONAL BANKS IN THE UNITED STATES
• A c < jrvftl
lOW-WOl

NUMBER W BANKS

25v000 I

I

I

I

I

RESOURCES IN
BILLIONS OFD0LLAR5

1

1

1

Resouroe8 and number of national banks in the United States
each year from 1863 to 1931. Figures are as of June 30 of
eaoh year or nearest reporting date.

1 50




- 12 -

CHART 6

RESOURCES OF STATE AND NATIONAL BANKS
1665-1931
BILLIONS OF DOLLARS
BILLIONS OF DOLLARS
40

40

State banks include trust companies and stock savings banks
but exclude private banks and mutual savings banks. Figures
are as of June 30 of each year or nearest reporting date.




-13-

The effect of this continued growth in resources has heen
to increase rapidly, since 1915, the average amount of resources per hank.
During the fifteen years 1915-1930, the average resources per hank increased
threefold, or from $916,000 to $2,746,000.
In Charts 4 and 5 the number and resources of State hanks and of
national hanks are shown separately.

These indicate that resources of hoth

types of hanks continued to mount during the years 1921-1930, while the numhers of hoth types were declining.
In Chart 6 the resources of State and of national hanks are
compared with each other. For ahout thirty years after the inception
of the national hanking system in 1863, the resources of national hanks
were far greater than those of State hanks. For the next twenty years
the resources of State hanks grew at a somewhat faster rate than those
of national hanks, so that hy 1915 the resources of the two systems were
almost equal in amount.

This continued until 1920, hut since that time

the resources of State hanks have "been greater than those of national hanks,
with the spread between the two increasing year hy year up to 1930. In
that year the resources of State hanks were 54 per cent of the resources
of all incorporated hanks.

Member and Nonmemher Banks
Charts 7 and 8 and Tahle 3 compare the number of member hanks
of the Federal reserve system each year since 1914 with the number of nonmemher hanks. Private hanks and mutual savings hanks are not included in




14 -

CHART 7

NUMBER Or MEMBER AND NONMEMBER BANKS
NUMBER Of BANKS

25,000

Wl** - 1S31

NUMBER OF BANKS
25,000

Honmember banks do not include private banks or mutual savings banks. Figures are as of June 30 each year and. December 31, 1931.




15 -

CHART d

NUMBER Of MEMBER AND NONMEMBER BANKS
NUMBER OT BANKS

W».-fl31

NUMBER OT BANKS

Nonmember banks do not include private banks or mutual savings banks. Figures are as of June 30 each year and December 31, 1931.




- 16 -

CHARTS

LOANS AND INVESTMENTS OF BANKS IN THE UNITED STATES
MILLIONS Of DOLLARS

MILLIONS Or DOLLARS

40000

Loans and investments of nonmember banks do not include
those of private banks or mutual savings banks. Figures
are as of June 30 each year and December 31, 1931,




- 17 -

CHART 10

LOANS AND INVESTMENTS OF BANKS IN THE UNITED STATES
MILLIONS OF DOLLARS

25000

1914 - W 3 1

MILLIONS 0F DOLLARS

25,000

Loans and investments of nonmember banks do not Include
those of private banks or mutual savings banks. Figures
are as of June 30 each year and December 31, 1931,

- IS -

these figures. While the great majority of commercial banks in the countryare nonmembers, the picture is quite different if loans and investments of
members and nonmembers are compared,

This comparison is made in Charts 9

and 10 and Table 4.

Table 3 - Number of Banks in the United States, Exclusive of
Mutual Savings Banks and Private Banks' ••
*'
1914-1931

Member bank s
Date
(Jane 30)

State

1914
1915
17
1916
34
1917
53
1918
513
1919
1,042
1920
1,374
1921
1,595
1922
1,648
1,620
1923
1924
1,570
1925
1,472
1926
1,403 '
1,309
1927
1,244
1928
1,177
1929
1930
1,068
1931
982
1931 (Dec, SI) 878

National

Total

7,518
7,597
7,571
7,599
7,699
7,779
8,024
8,150
8,244
8,236
8,080
8,066
7,972
7,790
7,685
7,530
7,247
6,800
6,368

7,518
7,614
7,605
7,652
8,212
8,821
9,398
9,745
9,892
9,856
9,650
9,538
9,375
9,099
8,929
8,707
8,315
7,782
7,246

Nonmember
State banks (exclusive of mutual
savings and
private banks)
17,498
17,731
18,219
18,657
18,891
18,604
19,261
19,672
19,141
19,034
18,458
18,101
17,591
16,810
16,196
15,551
14,730
13,341
11,921

All State
banks

All State
and national
banks

17,498
17,748
18,253
18,710
19,404
19,646
20,635
21,267
20,789
20,654
20,028
19,573
18,994
18,119
17,440
16,723
15,798
14,323
12,799

25,016
25,345
25,824
26,309
27,103
27,425
28,659
29,417
29,033
28,890
28,108
27,539
26,966
25,909
25,125
24,258
23,045
21,123
19,167

Banks in continental United States only. "All State banks," ^national
banks," and "all State and national banks" wore taken from the comptrollers'
abstracts and annual reports, except that for December, 1931, the State
bank figures were compiled by the Division of Bank Operations of the Federal
Reserve Board from State bank abstracts. State bank members were compiled
from Federal Reserve Board abstracts and call reports, and nonmember banks
were derived by deducting member banks from the total of national and State
banks.




-19-

Tablo 4 - loans and Investments of Banks in the Unitad States
Exclusive of Mutual Savings Banks and private Banks
1914-1931(1)

Date
(June 30)

1914
1915
1916
1917
1918
1919
1920
1921
1922
1923
1924
1925
1926
1927
1928
1929
1930
1931
1931 (Dec.Sl)

(in millions of dollars)
Nonmember
Member "banks
State "banks (exAll State
clusive of mutual
banks
savings and
State National Total
private banks)
_

8,313

8,313

76 8,688 8,764
229 10,086 10,315
556 11,897 12,453
4,594
6,530
8,012
8,226
8,477
9,702
10,109
11,225
12,025
12,519
12,999
14,254
13,907
13,098
11,481

13,913
15,712
17,547
15,895
15,705
16,805
17,058
18,293
19,159
20,237
22,062
21,457
21,749
20,825
19,094

18,507
22,242
25,559
24,121
24,182
26,507
27,167
29,518
31,184
32,756
35,061
35,711
35,656
33,923
30,575

8,410
8,658
10,201
11,804
13,321
15,934
18,724
18,316
18,154
20,292
21,047
22,919
24,288
24,850
25,873
27,386
26,545
23,632
20,081

8,410
8,582
9,972
11,248
8,727
9,404
10,712
10,090
9,677
10,590
10,938
11,694
12,263
12,331
12,874
13,132
12,638
10,534
8,600

All State
and national
banks
16,723
17,346
20,287
23,701
27,234
31,646
36,271
34,211
33,859
37,097
38,105
41,212
43,447
45,087
47,935
48,843
48,294
44,457
39,175

(l) See note (l), Table 3, p. 18.

Geographic Distribution of Banks
In 1920 there were ten States with more than a thousand .banks
each (including both incorporated and private banks), and these States
contained almost half of all the banks in the United States or about 15,000
in all. With the exception of Texas, these ten States constitute a solid
block stretching westward from Pennsylvania into the Middle West, They
include, besides the two States named:

Ohio, Indiana, Illinois, Iowa,

Minnesota, Nebraska, Kansas, and Missouri.

There were five other States

which had between 800 and 1,000 banks, all of them contiguous with this
group: New York, Michigan, Wisconsin, North Dakota, and Oklahoma.




- 20 -

By the middle of 1931 only five States had more than a thousand
hanks:

Illinois, Iowa, Missouri, Pennsylvania, and Texas. Six States had

"between 800 and 1,000:

New York, Ohio, Indiana, Wisconsin, Minnesota,

and Kansas. In these eleven States there were located approximately 12,000
"banks, or slightly more than half of all those in the country at that time.
Table II of the appendix gives the number of "banks in each State
not only in 1920 and 1931, "but also in 1900. In Table 5 of the text the
number in each geographic division is given, both for incorporated and
private banks; and in Table 6 the percentages of the total in each geographic
division.^/

For comparison, the percentages of the total population resid-

ing in each division are also given.

•Table 5 - Geographic Distribution of Active Banks in the United States
on June 30, 1900, 1920, and 1931(2)
1900
Geographic
division

1931

1920

IncorpoIncorpoIncorpoP r i v a t e All
P r i v a t e All
P r i v a t e All
rated
rated
rated
banks banks
banks banks banks
banks banks banks
banks

New England
Middle A t l a n t i c
North C e n t r a l
Southern Mountain
Southeastern
Southwestern
Western Grain
Rocky Mountain
P a c i f i c Coast

655
1,546
1,545
673
519
448
2,760
220
372

342
1,482
1,507
112
174
233
1,119
127
91

997
3,028
3,052
785
693
681
3,879
347
463

728
2,955
5,002
1,958
2,793
3,261
8,992
1,579
1.391

23
301
917
7
54
180
236
16
2

751
3,256
5,919
1,965
2,847
3,441
9,228
1,595
1.393

673
3,140
4,629
1,640
1,552
2,253
5,459
845
932

13
74
223
3
41
68
80
2

UNITED STATES

8,738

5,187

13,925 28,659

1,736

30,395

23,123

504 21,627

686
3,214
4,852
1,643
1,593
2,321
5,539
847
932

(2) For source see note to Table I of the appendix.




The geographic divisions referred to include the following States:
New England; Maine, New Hampshire, Vermont, Massachusetts, Rhode Island,
Connecticut.
Middle Atlantic: New York, New Jersey, Delaware, Pennsylvania, Maryland,
District of Columbia.

- 21 -

Table 6 - percentage Distribution of Banks and of Population in
the United States by Geographic Divisions
1900, 1920, and 1931
I n c o n porated hanks
1900
1920
1931

A l l "banks
1900
1920
1931

New England
Middle A t l a n t i c
North C e n t r a l
Southern Mountain
Southeastern
Southwestern
Western Grain
Rocky Mountain
P a c i f i c Coast

7.5
17.7
17.7
7.7
5.9
5.1
31.6
2.5
4.3

2.5
10.3
17.5
6.8
9.7
11.4
31.4
5.5
4.9

3.2
14.9
21,9
7.8
7.3
10.7
25.8
4.0
4,4

7.2
21.7
21.9
5.6
5.0
4.9
27.9
2.5
3.3

2.5
10.7
19.5
6.5
9.4
11.3
30.3
5.2
4.6

3.2
14.9
22.4
7.6
7.4
10.7
25.6
3.9
4.3

7.4
22.5
21.0
9.2
12.3
8.6
13.6
2.2
3.2

7.0
23.1
20.3
8.0
11.6
9.7
11.8
3.2
5.3

•6.6
23.3
20.6
7.6
11.4
9.9
10.8
3.0
6.8

UNITED STATES

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

Geographic
division

Po.->ulation(l)
1900
1920
1931

(1) Census figures for 1900 and mid-year estimates from the Statistical Abstract
Ilf .the United States for 1920 and 1931 were used.
The total number of "banks in each of these divisions for 1900,
1920, and 1931 is illustrated in Chart 11. It will he noted that changes
in the number of banks since 1900 have "been relatively small in "both the New
England and Middle Atlantic divisions. In the former section the number of
banks declined during both decades. In all the other geographic divisions
there was an increase in the number of banks between 1900 and 1920 and a
decrease between 1920 and 1931. In the Western Grain States, where the increase prior to 1920 was far greater than in any other section of the country,
the decrease since 1920 has also been far greater. But despite the rapid
decreases after 1920, the North Central and Western Grain States still had in
1931 about twice as many banks each as any other division.
North Central; Michigan, Wisconsin, Illinois, Indiana, Ohio.
Southern Mountain; West Virginia, Virginia, Kentucky, Tennessee.
Southeastern; North Carolina, South Carolina, Georgia, Florida, Alabama,
Mississippi.
Southwestern; Louisiana, Texas, Arkansas, Oklahoma.
Western Grain; Minnesota, North Dakota, South Dakota, Iowa, Nebraska,
Missouri, Kansas.
Rocky Mountain; Montana, Idaho, Wyoming, Colorado, New Mexico, Arizona,
Utah, Nevada.
Facific Coast; Washington, Oregon, California.






- 22 -

CHART 11

NUMBER
10000

NUMBER OF BANKS BY GEOGRAPHIC DIVISIONS
1900, m o AND 1931

NUMBER
10000

The number of banks in each geographic division lnoiudes
national. State and private banks but excludes mutual savings banks.

- 23 -

Population per Bank. - The relative excess of banking facilities in certain sections is shown more clearly when the population per
bank is computed by geographic regions and States. This is done in
Table 7 for incorporated banks and for all banks. For all banks it is
illustrated in Chart 12.
Table 7 - Population per Bank 1900, 1920, and ^ l ^ 1 )
Geographic
division
New England
Middle Atlantic
North Central
Southern Mountain
Southeastern
Southwestern
Western Grain
Rocky Mountain
Pacific Coast
UNITED STATES

State and
national banks
1900
1920
1931

All banks
1900

1920

1331

5,609 9,920 11,990
8,537 10,234 12,221
5,549 7,537 9,005
8,305 9,217
11,064
5,273
5,238 3,656
4,326
10,347
5,528
5,750
4,375
8,893 4,360
5,760
10,373
8,832
4,413
13,505 4,329
9,066
18,033
5,310
3,163
9,592 2,998
5,470
14,580
2,411
1,399
2,667 1,363
2,446
3,749
4,404
2,135
4,827 2,113
4,414
7,614
9.006
5.220 4.045
9.006
6.497 4.051
8,697

3,713

5,874

5,457

3,501

5,737

( 1 ) See p. 96 for population per bank by States and source of
population figures.

In the New England and Middle Atlantic States the population
per bank increased both from 1900 to 1920 and from 1920 to 1931. In
the other geographic divisions, however, the population per bank declined from 1900 to 1920, as a result of the opening of many new banks,
and increased from 1920 to 1931, as a result of suspensions and consolidations.

It is especially noteworthy that the population per bank was

smaller, in each of these three years, in the Western Grain States than
in any other region.
The population per bank and the population per incorporated bank
in each State for 1900, 1920, and 1931, are given in Table III of the
appendix.







- 24 -

CHART 12

POPULATION PER BANK BY GEOGRAPHIC DIVISIONS
1900,1920 AND m\
POPULATION PER BANK
POPULATION

PER BANK
H+000

Population per bank is based on the number of national.
State and private banks in each geographic division.
Mutual savings banks are excluded.

- 25In 1920 only three States, Massachusetts, Rhode Island, and New York, had
over 10,000 inhabitants per "bank. Eighteen States had less than 3,000 persons per hank, and half of these less than 2,000.

The latter nine States

constitute a solid block in the Middle West and Northwest, including Minnesota, Iowa, Kansas, Nebraska, South Dakota, North Dakota, Montana, Wyoming,
and Idaho. In t w of these States, the Dakotas, the population per bank
jo
was less than a thousand.

This would roughly indicate an average of only

two or three hundred individual customers per bank.
By the middle of 1931 seven States and the District of Columbia had
more than 10,000 persons per bank.

Three of these, Massachusetts, Rhode

Island, and New York, were in the Northeastern part of the country; the rest
were stretched across the Southern part of the nation, including South Carolina, Louisiana, Arizona, and California. Only eight States had less than
3,000 persons per bank, and two States less than 2,000.
In Table 8 arc listed the five States with the largest population
per bank and the ten States with the smallest population per bank in 1920
and in 1931.




Table 8 - States with the Largest and the Smallest
Populations per Bank June 30, 1920 and 1931

State

1920
Population
per bank

Rhode Island
Massachusetts
New York
Connecticut
New Jersey

18,515
14,423
10,870
8,552
8,499

Missouri
Idaho
Minnesota
Kansas
Montana
I ova
Wyoming
Nebraska
South Dakota
North Dakota

2,064
1,968
1,596
1,314
1,292
1,249
1,216
1,089

916
719

State

1931
Population
T>er bank

Rhode Island
Massachusetts
California
New York
South Carolina
Wisconsin
Montana
Nevada
Wyoming
Minnesota
Sorth Dakota
South Dakota
Iowa
Kansas
Nebraska

26,692
17,258
14,263
13,805
12,362
3,255
3,241
2,788
2,780
2,762
2,262
2,178
2,097
1,937
1,904

- 26 -

In only three States, Connecticut, Delaware, and New Jersey, was
there any increase in the total number of "banks during the period from 1920
to 1931. In two other States, Michigan and New York, there was an increase
in the number of incorporated hanks. In seven States, South Carolina,
Georgia, North Dakota, South Dakota, Montana, Arizona, and New Mexico, the
number of hanks in 1931 was less than half of what it was in 1920, and in a
large number of other States the reduction was almost as great.




CHAPTER II

SIZE DISTRIBUTION OF INCORPORATED B A M S

In the foregoing chapter both incorporated and private "banks have
"been taken into consideration. Private banks were relatively more important
in past years than at the present time, and it seemed necessary to include
them in considering long-time changes in the hanking facilities of the nation.

In considering the size distribution of banks, however, our attention

will be confined principally to the years from 1920 to 1931* During this
period private banks were of relatively little importance and information regarding their size is scanty. For these reasons only incorporated
banks will be considered in this chapter, private banks being reserved for
a later chapter.'*'

Banks Grouped by Amount of Capital Stock
Capital stock is not the best measure of the size of a bank. The
relationship between capital and resources or between capital and liabilities

^ 1 ' The 1920 figures as given in this chapter and in appendix Tables IV, VI,
VIII, X, XII, and XIV include 3^6 banks in Illinois which were classed
as private banks on June 30 of that year, most of which had been converted to State banks by the end of the year on account of a law prohibiting the operation of private banks after January 1, 1921.
In classifying active State banks by size groups, whenever individual reports for June 30 were not obtainable, figures for the nearest
available date were used. For this reason the totals in the tables in
this chapter and in appendix Tables IV-XV, showing the distribution of
banks by size groups in 1920 and 1930» differ somewhat from similar
figures elsewhere in this report and in the comptroller's reports.
The State bank figures used were either supplied by the State banking
departments or compiled from their published reports.




- 27 -

- 28 -

to the public differs widely "between "banks, especially "between banks in different communities or banks of different size. The classification of banks
by size of capital stock, however, can be made for a longer period of time
than on the basis of any other measure of size.
In Table 9 tlae approximate number of State and national banks with
less than $50,000 and with $50,000 or more of capital stock is given by ten
or eleven year intervals since 1877*

The figures for the years up to and

including 1909 are taken from the Publications of the National Monetary Commission, but for 1920 and 1930 they were collected by the Committee on Branch,
Group, and Chain Banking.
Table 9 - Distribution of Incorporated Banks by Size of Capital St ockCD
State banks
Year

Less than
$50,000

$50,000
and over

National banks
Less than
$50,000

$50,000
and over

State and
n a t i o n a l banks
Less than $50,000
$50,000
and over

Number
1877
1888
1399
1909
1920
1930

187
747
2,529
9,042
14,429
9,695

63H
1,043
1,578
3,536
6,432
5,924

-

2,197
2,605
1,992

2,080
3,144
3,579
4,773
5,419
5,255

187
747
2,529
11,239
17,034
11,687

2,714
4,187
5,157
8,309
11,851
11,179

6.4
15.1
32.9
57.5
59.0
5l.l

93.6
84.9
67.1
42.5
41.0
48.9

Per cent of t o t a l
1877
IS 88
1899
1909
1920
1930

22.8
Ul.7
61.6
71.9
69.2
62.1

77.2
58.3
38.4
28.1
30.8
37.9

mm

—
-

31.5
32.5
27.5

100.0
100.0
100.0
6s. 5
67.5
72.5

(1) Figures for 1877, 1888, 1899, and 1909 from Barnett, "State Banks
and Trust Companies Since the Passage of the National Bank Act,"
Publications of the National ivionetary Commission, Vol. vii, pp.
212, 222, 231, and 257. Figures for 1920 and 1930 were collected
by the Committee on Branch, Group, and Chain Banking with the cooperation of the Federal reserve banks and State banking departments. (See note p. 27.) For 1909, 1920, and 1930 trust companies
are included with State banks.




- 29 -

The most striking feature of these figures is the increase
each decade down to 1920 in the number of State "banks with less than
$50,000 of capital stock. Banks of this size constituted 23 per cent
of all State hanks in 1877, "but in 1920 they had risen to 69 per cent
of the total.
In 1877 all of the national hanks and 77 per cent of the
State hanks had $50,000 or more of capital stock. By 1899 only 38
per cent of the State hanks had this amount of capital, and hy 1909
only 28 per cent. In 1900 the National Bank Act was amended to
permit the organization of national hanks with only $25,000 of capital stock in towns of less than 3>00° population. By 1909 ahout 31
per cent of the national hanks had less than $50,000 capital stock,
"but this percentage had increased only slightly hy 1920. In the
latter year the number of national hanks with less than $50,000 of
capital stock was only 2,605 in comparison with 1^,^29 State hanks.
In Tahle 10 a more detailed grouping is given of the hanks
in 1909, 1920, and 1930, and in Tahle 11 the percentage changes from
1909 to 1930 are given for the various size groups.'1)

(1) Tables IV and V of the appendix give the number of State and
national hanks in each State in 1920 and in 1930 grouped hy
size of capital stock. The aggregate amount of capital stock
of these hanks, similarly grouped, is given in Tahles VI and
VII of the appendix.




- 30 Table 10 - D i s t r i b u t i o n of Banks in 1909, 1920, and 1930
by Size of Capital Stock(l)
]dumber

Size group
c a p i t a l stock

State

of banks
S t a t e and
National
national

Per cent of t o t a l
„ ..
S t a t e and
l
..
S t a t e N a t i o n an
n
1 national

1909
Under $25,000
25,000 - 50,000
50,000 - 100,000
100,000 - 200,000
200,000 and over
Total

5 , SSI
3.161
1,722
1,039

775
12,578

2,197.
2,2l4
1,908(2)
651
6,970

5,881
5,358
3.936
2,947
1,426

46.7
25.1
13.7
8.3
6.2

31.5
31.8
27. 4
9.3

19,548

100.0

100.0

100.0

0.2

30.1
27. 4
20.1
15.1

7.3

1920
3,2*40
6,189
3.272
1,908
1,252

16
2,589
2,454
1,790
1,175

8,256
8,778
5,726
3,69s
2,427

39.5
29.7
15.7
9.1
6.0

30.6
22.3
l4.6

28.6
30.4
19.8
12.8
8.4

20,861

8,024

2S,8S5

100.0

100.0

100.0

Under $25,000
25,000 - 50,000
50,000 - 100,000
100,000 - 200,000
200,000 and over
Total

1930
4,768
4,927
2,648
1,764
1,512

1
1,991
2,053
1,818
1,384

^,769
6,918
4,701
3,582
2,896

30.5
31.5
17.0
11.3

15,619

7,247

22,866

100.0

Under $25,000
2 5 , 0 0 0 - 50,000
50,000 - 100,000
100,000 - 200,000
200,000 and over
Total

9.7.

0.01
27.5
28.3
25.1
19.1
100.0

20.9
30.2
20.5
15.7
12.7
100.0

(1) Figures for 1909 are from the Publications of the National Monetary Commission, Vol. v i i , pp. 252-257, and the Annual Beport of the Coraptrollar of.
the Chrrency. 1909, p . 111. Figures for 1920 and 1930 were collected by the
Committee on Branch, Group, and Chain Banking. (See note p . 27.)
(2) Includes n a t i o n a l banks with from $100,000 to $250,000 of c a p i t a l stock.
Table 11 - Percentage Changes in Number of Banks by Size of Capital Stocks 3)
S i z e group
c a p i t a l stock
Under $25,000
25,000 - 50,000
50,000 - 100,000
100,000 - 200,000
200,000 and over
Total

1909-1920
1920-19TC
S t a t e and
S t a t e and
National
State National
S t a t e banks
banks
n a t i o n a l banks banks banks
n a t i o n a l banks
+ 40.1

+ 95.8
+ 90.0
+ 83.6) u
+ 6l.5)+74*2
+ 65.9

(3) See note p . 27.




+17.8
+10.8
+15.9
+15.1

+4o.4
+ 63.8
+ 45.5
+ 40.1
+ 47.8

+20.8

-23.1
-I0.3
+ 1.6
+ 17.8

-42.2
-21.2
-17.9
- 3.1
+19.3

-25.1

- 9.7

-20.8

-42.1
-20.4
-19.1

- 7.5

- 31 -

During the period from 1909 to 1920 there were increases in the
numbers of "banks in a l l size groups.

Considerable differences appeared,

however, in the r a t e s of increase in the various size groups, the hanks
c a p i t a l i z e d a t from $25,000 to $50,000 increasing at a more rapid r a t e
than e i t h e r l a r g e r or smaller hanks.
From 1920 to 1930, however, there were sharp declines
small hanks, whereas the l a r g e s t hanks continued to i n c r e a s e .

among
Banks under

$25,000 of c a p i t a l stock declined k2 per cent; those with from $25,000 to
$100,000, 20 per cent; and those with from $100,000 to $200,000, 3 per c e n t .
Banks with $200,000 and more of c a p i t a l stock increased 19 per cent in
number.

The trend was towards a d r a s t i c reduction in the number of small

hanks and an increase in the number of very large hanks.
Banks Grouped "by Size _of E.oans and Investments
The loans and investments of a hank are a b e t t e r measure of i t s
s i z e than i t s capital stock.

For the period from 1920 to 1930i therefore,

a much more detailed analysis has been made of the number of hanks c l a s s i fied by size of loans and investments.
Size Distribution of Banks in 1920 and 1930. — Table 12 gives
the number of banks in 1920 and in 1930 i n the various size groups, c l a s s i fied by loans and investments, together with the percentage change during
the decade, and the per cent of the t o t a l number at each of these d a t e s .
The numbers in Ute various size groups in each of these years are i l l u s t r a t e d
in Chart 13, and the percentage change during the decade in Chart l U . v 1 '
* 1 ' Tables VIII and IX in the appendix give the number of State and n a t i o n a l
banks in each State in 1920 and in 1930, grouped by size of loans and
investments. The aggregate loans and investments of these banks,
similarly grouped, are given in Table X and XI of the appendix.







- 32 -.

CHART 13

DISTRIBUTION OF BANKS BY SIZE GROUPS
IN 1920 AND 1930
NUMBER OF BANKS
NUMBER Of BANKS
7000

Number of State and national banks in 1920 arfir*1930, grouped
according to amount of loans and investments




- 33 -

CHART 1A-

PER CENT

PERCENTAGE: CHAMES IN THE NUMBER or BANKS
FROM 1920 TO 1930, BY SIZE GROUPS

PERCENT

+ 40

Percentage changes in the number of State and national banks
from 1920 to 1930 in the different size groups aooording to
amount of loans and investments

+40

- 34-

Table 12 - Distribution of State and National Banks in 1920 and 1930
by Size Groups
Size group
l o a n s and i n v e s t m e n t s
Under $150,000
150,000 - 250,000
250,000 - 500,000
500,000 - 750,000
750,000 - 1,000,000
1,000,000 - 2,000,000
2 , 0 0 0 , 0 0 0 - 5,000,000
5,000,000 - 10,000,000
10,000,000 - 50,000,000
5 0 , 0 0 0 , 0 0 0 and over

1920

1930

6,54s
5,n4
6,977

Percentage
change from
1920 to 1930

M39

3,172
1,819
2,733
1,573
508
369
72

2S,S85(1)

Total
(1)

ifumber of banks

3.510

4,966

2,362
1,552
2,600
1.S87

Per c e n t
of t o t a l
number
1920
19 TO

+4o.i

1.8
1.3
0.2

21.2
15.3
21.7
10.3
6.8
11.4
8.3
2.6
2.0
0.4

-20.8

100.0

100.0

-26.1
-3I.U
-28.8
-25.5

22.7
17.7
24.1
11.0

-l4.7
- 4.9

6.3
9.5
5.4

595

1+54

+20.0
+17.1
+23.0

101
22.866U)

See note p . 2 7 .
Among banks w i t h l e s s than $150,000 of loans and i n v e s t m e n t s

t h e r e was a d e c l i n e of 2b p e r cent i n number between 1920 and 1930, while
among those w i t h from $150,000 to $250,000 of l o a n s and investments t h e
d e c l i n e was even g r e a t e r , amounting to 31 P e r c e n t .

From t h i s p o i n t , how-

e v e r , the p e r c e n t a g e s t e a d i l y d i m i n i s h e d , so t h a t the d e c l i n e among banks
w i t h from $1,000,000 to $2,000,000 was b u t 5 p e r c e n t .

In a l l groups w i t h

more than $2,000,000 of l o a n s and i n v e s t m e n t s the number of banks i n c r e a s e d ,
t h i s i n c r e a s e r i s i n g t o a s much a s 40 p e r c e n t i n t h e case of banks w i t h
more than $50,000,000 of l o a n s and i n v e s t m e n t s .
Thus while t h e r e was a n e t d e c l i n e of 21 p e r c e n t during t h e t e n
y e a r s i n the number of b a n k s , t h i s d e c l i n e o c c u r r e d i n the groups of banks
w i t h l e s s than $2,000,000 of loans and i n v e s t m e n t s , and p r i n c i p a l l y among
t h o s e w i t h l e s s than $750,000 of loans and i n v e s t m e n t s .
The r e s u l t of t h e s e changes was t o d e c r e a s e the p e r c e n t a g e of
t h e t o t a l banks i n t h e s m a l l e r s i z e groups i n 1930, as compared with 1920,




- 35 and to increase the percentage in the larger size groups*

Notwithstanding

these changes, however, there was s t i l l in 1330 a larger preponderance of
small banks—over 13,000 tanks, or 58 per cent, having loans and investments
of l e s s than $500,000, while 8,400, or 37 per cent, had loans and investments
of $500,000 to $5,000,000 and 1,150, or 5 per cent had loans and investments
of $5,000,000 or more.
Comparison of State and of National Banks by Size. - In Table 13
the number of hanks "by size groups i s given for State and national banks
separately for 1920 and for 1930.

The d i s t r i b u t i o n of State and national

hanks by s i z e groups i s i l l u s t r a t e d for 1920 in Chart 15 and for 193O in
Chart l 6 .
Table 13 - Distribution of State and National Banks in 1920 and 1930
by Size Groups
Size group
loans and investments
State
Under $150,000
6,203
150,000 - 250,000
4,355
250,000 - 500,000
4,948
500,000 - 750,000
1.S57
750,000 - 1,000,000
95S
1,000,000 - 2,000,000
1,310
762
2,000,000 - 5,000,000
24S
5,000,000 - 10,000,000
185
10,000,000 - 50,000,000
35
50,000,000 and over
Total

1 330

ic>20

20,s6i(1)

National

345
759

2,029
1,315

State
4,504
2,809
3,375
1,394

861

785

1,423

1,280

811
260
184

S73
288
252
59

37
8,024

15,6l9 ( l )

National
335
701

1,591
968
767

1,320
1,014
307
202

42
7,247

Percentage
change
1920 to 1930
State National
-27.4
-35-5
-31.8
-24.9
-18.1
- 2.3
+14.6
+16.1
+36.2
+68.6

-21.6
-26.4
-10.9
- 7.2
+25.0
+18.1
+ 9.8
+13.5

-25.1

- 9.7

.......

Per cent af t o t a l
Under $150,000
150,000 - 250,000
250,000 - 500,000
500,000 - 750,000
750,000 - 1,000,000
1,000,000 - 2,000,000
2,000,000 - 5,000,000
5,000,000 - 10,000,000
10,000,000 - 50,000,000
50,000,000 and over
Total
(1) See note p . 27.



29.7
20.9
23.7

s.q
4.6
6.3
3.6
1.2
0.9
0.2

100.0

4.3
9.5
lb.4
10.7
17.7
10.1

28.8
18.0
21.6
8.9

5.0.

8.2

5-6

1.?

4.6
9.7

21.9
13.}
10.6
IS.2

l4.o

3.2
2.3
0.5

0.4

4.2
2.8
0.6

100.0

100.0

100.0

l.b

- 2.9

- 7.6




- 36 -

CHART 15
DISTRIBUTION OF STATE AND NATIONAL BANKS
IN 1920 BY SIZE GROUPS
NUMBER OF BANKS

NUMBER OF BANKS

7000

7000

Number of State and national banks on June 30, 1920, grouped
according to amount of loans and investments




- 37 -

CHART 16
DISTRIBUTION OF STATE AND NATIONAL BANKS
IN m o BY SIZE GROUPS
NUMBER OF BANKS
5000

NUMBER Or BANKS

Somber of State and national banks on June 30, 1930, grouped
according to amount of loans and investments

5000




- 32 -

Of the State "banks, about 30 per cent both in 1920 and in 1930,
and of the national banks, k per cent in 1920 and 5 per cent in 1930*
had loans and investments of l e s s than $150,000.

In the former year ~[k

per cent of the State banks, and in the l a t t e r year 6g per cent, had loans
and investments of l e s s than $500,000, while for n a t i o n a l banks the corresponding figures were 39 P©r

ce

n t and 36 per cent.

In 1920 about 23 per

cent, and in 1930 about 2S per cent, of the State banks had loans and i n vestments between $500,000 and $5,000,000, while about 55 per cent of the
national banks in 1920 and 56 per cent in 1930 had loans and investments
between $500,000 and $5,000,000.

Two per cent of the State banks in 1920

and U per cent in 1930 k ^ more than $5,000,000 of loans and investments;
for national banks the correspondent figures were 6 per cent and S per
cent.
When the numbers of State and national banks with l e s s than
$500,000 of loans and investments are compared, i t appears that in 1920 there
were IS,639 of these banks, of ;?hich 15,50b, or S3 per cent, were State
banks, and 3>133>

or

17 per cent, were national banks.

By 1930 the number

had been reduced to 13,315, of which SO per cent were State banks and 20
per cent V7ere national banks.
Among medium sized banks the f i e l d has been about equally divided
between the S t a t e and the national banks,

Of the 9,297 banks in 1920

with from $500,000 to $5,000,000 of loans and investments, 53 per cent
had State c h a r t e r s .

By 1930 the number of banks of t h i s size had been




- 39 -

reduced to 8,^01 in number, with 52 per cent having State c h a r t e r s .
Among large hanks also, the f i e l d i s about equally divided between the national and the State systems.

In 1920 there were 9^9 banks

with more than $5,000,000 of loans and investments, of which kS per cent
had State c h a r t e r s ; while in 1930 there were 1,150 banks of t h i s s i z e ,
with 52 per cent of them under State c h a r t e r s .
Farther comparison between the State and national systems i s
possible by noting the number in each size group in Table 13»

State

banks predominated over national banks, both in 1920 and in 1930» i n a l l
size groups with l e s s than $1,000,000 of loans and investments.

National

banks predominated over State banks in number in the size groups between
$1,000,000 and $10,000,000 of loans and investments.

Among banks with

over $10,000,000, however, there were more with State charters than with
n a t i o n a l c h a r t e r s in 1930*
The percentage changes in the number of State and of national
banks during the decade from 1920 to 1930» also shown in Table 13, throw
considerable l i g h t on changes in the r e l a t i v e importance of State and nat i o n a l banks.

In a l l size groups with l e s s than $2,000,000 of loans and

investments, there were declines during the decade in the number both of
State and of n a t i o n a l banks.

In size groups with more than $2,000,000 of

loans and investments there were increases in the numbers of both State
and national banks.

Among banks with less than $500,000 of loans and

investments, the r a t e s of decline were far greater among State banks




- 10 *

than among national "banks; while among the tanks with more than $10,000,000
of loans and investments, the r a t e of increase among the State "banks was
g r e a t e r than among the national "banks.

Only among "banks of from

$2,000,000 to $10,000,000 of loans and investments did the national
"banks increase during trie decade more rapidly than the State "banks.
Thus the number of State "banks not only exceeds the number of
n a t i o n a l "banks among the larger "banks, "but t h i s excess increased during
the period 1920-1930.

At the same time t h e i r predominance slowly dimin-

ished among small banks, due to the higher suspension r a t e s among State
than among national "banks.
G-eograpnic Distribution of Banks "by Size. - Tables lk and 15
give for 1920 and for 1930> r e s p e c t i v e l y , the d i s t r i b u t i o n of banks in
each size group in each geographic d i v i s i o n .

The small banks are l o -

cated primarily in the a g r i c u l t u r a l regions of the South and Middle

tfest.

The large banks are located p r i n c i p a l l y in the Northeastern p a r t of the
country, including the North Central S t a t e s .
In the Hew England and Middle A t l a n t i c S t a t e s , where tnere i s
a preponderance of urban, commercial, and i n d u s t r i a l a c t i v i t y , the proportion of small banks was low both in 1920 and in 1930» and the proportion of large banks was high.

Moreover, in a l l size.groups of less than

$1,000,000 of loans and investments in tnese two divisions the number of
banks was less in 1930 than in 1920, and in a l l size groups with more than
$2,000,000 the number was g r e a t e r in 1930 than in 1920.
In the North Central and Pacific Coast S t a t e s , where there i s
a more balanced d i v e r s i t y between i n d u s t r i a l and a g r i c u l t u r a l a c t i v i t i e s ,

- 41 a largerproportion of the banks was in the smaller size groups.
In the other groups of States, where there is a preponderance of
rural and agricultural activities, the picture becomes almost directly the
opposite of that in the commercial States. The banks with less than $150,000
loans and investments constituted the most numerous class, and in three out
of the five groups of States they were relatively more numerous in 1930 than
in 1920. Moreover, there was no pronounced tendency for the proportion of
large banks to increase.

In all the groups of agricultural States the bulk

of the banks in 1930 still had loans and investments of less than $500,000.

Table l4 - Distribution of Banks in 1920 by Size of loans and Investments
and by Geographic Divisions
S t a t e and n a t i o n a l 2 anks
SouthNew Middle North
South- South- West- Rocky PaSize group
ern
Eng- A t l a n - Cene a s t - west- e r n Moun- c i f i c
l o a n s and i n v e s t m e n t s
Mountral
land t i c
e r n Grain t a i n Coast
ern
tain

Total

Number
Under $150,000
150,000 - 250,000
250,000 - 500,000
500,000 - 750,000
750,000 - 1,000,000
1,000,000 - 2,000,000
2 , 0 0 0 , 0 0 0 - 5.000,000
5 , 0 0 0 , 0 0 0 - 10,000,000
10,000,000 - 50,000,000
50,000,000 and over
Total

17
30
87
94
74
171
164
53
33
_6

98
l46
481
365
342
661
472
181
l

l}
16

729 2 , 9 1 3

764
920
1,429
707
44o
600
323
101
72
18

51?
3^
483
203
133
178
72
37
17

817 LO63 2,623
492
63I 2,053
596
776 2 , 4 6 3
314
285
857
142
144
357
227
172
410
100
108
149
24
17
43
IS
32
23
_
1
5

Total
(1) See note p. 27.



P'13
4.
11.9
12.9
10.2
23.5
22.5
7.3
4.5
0.8

3.4
5.0
16.5
12.5
11.8
22.7
16.2
6.2

4.5
1.2

300,0 100.0

4

_

191
185
322
194
108
201
104
35
39
6

6,548
5»ll4
6,977
3.172
1,819
2,733
1,573
508
369
72

5,374 1,969 2,694 3.256 8,992 1.573 1.385 2 8 , 8 8 5 ^
P e r c e n t of

Under $150,000
150,000 - 250,000
250,000 - 500,000
500,000 - 750,000
750,000 - 1,000,000
1,000,000 - 2,000,000
2 , 0 0 0 , 0 0 0 - 5,000,000
5,000,000 - 10,000,000
10,000,000 - 50,000,000
50,000,000 and over

463
323
34o
153
79
113
81
17

14.2
17.1
26.6
13.2
8.2
11.2
6.0
1.9
1.3
0.3

26.0
17.0
24.5
10.3
6.7
9.0
3.7
1.9
0.9
_

total

32.7 2 9 . 2
19.4 2 2 . 8
23.8 27.4
9.7
9.5
4.4
4.0
5.3
4.5
1.6
3.3
0.7
0.5
0.4
0.7
0.01
0.1

29.4
20.5
21.6
9.7
5.0
7.2
5.2
l.l
0.3
—

13.8
13.4
23.3
14.0
7.8
14.5
2.5
2.8
0.4

22.7
'17.7
24.1
11.0
6.3
9.5
.5.4
1.8
1.3
0.2

100.0 100.0 100.0 100.0 100.0 100.0 100.0

100.0

30.3
18.3
22.1
10.6

5

'?

8.4
3.7
0.6
0.7
_.

7.5

-

42-

Table 15 - Distribution of Banks in 1930 by Size of Loans and Investments
and by Geographic Divisions
S t a t e and N a t i o n a l Banks
SouthNew Middle North
South- Sbufc. West- Rocky PaSize group
ern
Eng- A t l a n - Cene a s t - w e s t - e r n Moun- c i f i c
l o a n s and i n v e s t m e n t s
Mountic
land
tral
ern
e r n Grain t a i n Coast
tain

Total

Number
Under $150,000
150,000 - 250,000
250,000 - 500,000
500,000 - 750,000
750,000 - 1,000,000
1,000,000 - 2,000,000
2 , 0 0 0 , 0 0 0 - 5,000,000
5 , 0 0 0 , 0 0 0 - 10,000,000
10,000,000 - 50,000,000
50,000,00 and over
Total

16
11
44
67
56
170
204
75
54
_6

31
109
4l2
36O
319
797
733
236
186

4s

703 3,231

564
267
327
169
101
151
84
17
18
2

:

884 1,970
460 1,275
559 1,513
483
208
126
263
119
283
146
SO
31
35
23
26
3
7

210
166
229
90
61
68
57
15
12

5,084 1,755 1,700 2,496 5,998

908

627
804
1,255
646
421
683

4o7
135
86
20

407
282
380
223
116
197
90
29
31
_

P e r c e n t of
Under $150,000
2.3
150,000 - 250,000
1.6
250,000 - 500,000
6.3
500,000 - 750,000
9-5
750,000 - 1,000,000
7.9
1,000,000 - 2,000,006 2 4 . 2
£,000,000 - 5,000,000 29.0
5,000,000 - 10,000,000 10.7
30,000,000 - 50,000,000 7.7
5 0 , 0 0 0 , 0 0 0 and over
0.8
Total
(l) See note p, 27.




1.0

3^
12.7
11.1
9.9
24.6
22.7
7.3
5.8
1.5

300.0 100.0

_

130
136
247
116
89
132
86
22
IS
1*?

4,839
3,510
4,966
2,362
1,552
2,600
1,887
595
454
101

1)
991 2 2 , S 6 6 ^

total
13.1
13.7
25.0
11.7
9.0
13.3
8.7
2.2
1.8
1.*?

21.2
15.3
21.7
10.3
6.8
11.4
S.3
2.6
2.0
0.4

100.0 100.0 100.0 100.0 100.0 100.0 100.0

100.0

12.3
15.8
24.7
12.7
8.3
13.4
8.0
2.7
1.7
0.4

23.2
16.0
21.7
12.7
6.6
11.2
5.1
1.7
1.8
_

33-2
15.7
19.3
9.9
5.9
3.9
4;9
1.0
1.1
0.1

35.4
18.5
22.4
8.3
5.1
4.8
3.2
1.2
1.0
0.1

32.8
21.3
25.2
8.1
4.4
4.7
2.4
0.6
0.4
0.1

23.1
18.3
25.2
9.9
6.7
7.5
6.3
1.7
1.3

- 43-

Loans and Investments of Banks by Size Groups. - In the foregoing
paragraphs only the number of hanks in the various size groups has been considered.

In Table l6 the amount of business

as measured by loans and in-

vestments t handled by all banks in each size group is given.
Table l6 - Loans and Investments of State and National Banks in 1920 and 1930'
by Size Groups

Aggregate loans
and investments
(000 omitted)

Size group
loans and investments

1920

Total

6oi,524
1,010,7^5
2,493,982
1,930,628
1,570,582
3,778,474
4,771,143
3,471,381
7,365,583
,9,1^,889.

1930

$

$

$36,i49,93l(1)

Under $150,000
150,000 - 250,000
250,000 - 500,000
500,000 - 750,000
750,000 - 1,000,000
1,000,000 - 2,000,000
2,000,000 - 5.000,000
5,000,000 - 10,000,000
10,000,000 - 50,000,000
50,000,000 and over

Percentage
change from
1920 to 1930

$48,061,915^^

449,24i
692,185
1,782,362
1,449,608
1,344,100
3,666,674
5,796,287
4,160,658
8,831,124
19,889,676

Per cent of
t o t a l aggregate loans
and investments
1930
1920

-25.3
-31.5
-28.5
-24.9
-14.4
-3.0
+21.5
+ 19.9
+ 19.9
+ 117.2

1.7
2.8
6.9
5.3
4.3
10.5
13.2
9.6
20.4
25.3

0.9
1.4
3.7
3.0
2.8
7.6
12.1
8.7
18.4
4l,4

+33.0

100.0

100.0

U ) See note p . 27.
This table may be compared with Table 12 regarding the number of
banks.

In the c l a s s of banks with l e s s than $150,000 of loans and investments

there were 6,548 banks in 1920 whose aggregate p o r t f o l i o s held $601,524,000.
In 1930 the number of banks in t h i s c l a s s had dropped to 4,839 and t h e i r
holdings to $449,241,000.

At the other extreme, there were 72 banks in 1920

whose t o t a l holdings were $9,155,889,000; by 1930 the number of banks in t h i s
c l a s s had increased to 101 and t h e i r holdings to $19,889,676,000.
In 1930 the banks in the smallest size group, with less than
$150,000 of loans and investments per bank, constituted 21 per cent of the




-44-

t o t a l number of banks, but held l e s s than 1 per cent of the t o t a l loans and
investments.

In contrast to t h i s , the bank; in the l a r g e s t size group, with

more than $50,000,000 of loans and investments per bank, held 4 l per cent of
the t o t a l loans and investments of a l l banks, though they constituted l e s s
than one-half of 1 per cent of the t o t a l number of banks.
I t w i l l also be seen that in every size group below $2,000,000 both
the number of banks and t h e i r aggregate loans and investments decreased from
1920 to 1930; and in every size class of more than $2,000,000 of loans and
investments both the number of banks and the size of t h e i r holdings increased.
Baring the decade the former group had shrunk 25 per cent in number and IS per
cent in aggregate loans and investments, while the l a t t e r group had increased
20 per cent in number and 56 per cent in aggregate loans and investments.
The volume of business done by State and by national banks in each
of the size groups i s shown for 1920 in Table 17 and for 1930 in Table IS.
Percentage changes during the decade are shown in Table 19.
Table 17 - Distribution of State and National Banks in 1920 by Size Groups

Size group
loans and investments

Under $150,000
150,000 - 250,000
250,000 - 500,000
500,000 - 750,000
750,000 - 1,000,000
1,000,000 - 2,000,000
2,000,000 - 5.000,000
5,000,000 - 10,000,000
10,000,000 - 50,000,000
50,000,000 and over

Number
of
banks
6,203
^,355
4,94s
1.857
958
1,310
762
248
185

35
20,86l )

( l ) See note p . 27.




566,8^7
854,743
1,742,843
1,124,934
823,130
1,305,244
2,320,816
1,706,233
3,731.180

345
759
2,029
1,315
861
1,423
811
260
184

3,926,895

$

(1

Total

State
National
Aggregate
Aggregate
Number
loans and
loans and
of
investments
investments
banks
(000 omitted)
(000 omitted)

37

$is,6o2,S7cC0

8,024

$

34,677
156,002
751,139
805,694
747,452
1,973.230
2,450,327
1.765.1^3
3,634,403
5.228.994

$17,5^7,061

* 45 -

Table IS - Distribution of State and National Banks in 1930 " y Size Groups
b

Size group
l o a n s and i n v e s t m e n t s

Number
of
banks
4,504
2,809
3.375
1.39*+
785
1,280
873
288
252

Under $150,000
150,000 - 250,000
250,000 - 500,000
500,000 - 750,000
750,000 - 1,000,000
1,000,000 - 2,000,000
2 , 0 0 0 , 0 0 0 - 5,000,000
5.000,000 - 10,000,000
1 0 , 0 0 0 , 0 0 0 - 50,000,000
5 0 , 0 0 0 , 0 0 0 and over
Total

State
Aggregate
l o a n s and
investments
(000 o m i t t e d )

59
15,61$

$

National
Aggregate
Number
l o a n s and
of
investments
banks
(000 o m i t t e d )

411-078
551.427
1,192,671
852,605
676,478
1,785,477
2,683,691
2,025,417
5,Ol4 ? S73
11,118,825

335
701
1,591
968
767
1,320
i,oi4
307
202
42

$

$26,312,542(5

7,247

$21,749,373

38,163
140,758
589,691
597,003
667,622
1,881,197
3,112,596
2,i35,24i
3.816,251
3,770r85l

( l ) See note p . 27 •
Table 19 - Percentage Change in the Number and Loans and Investments
of State and National Banks, 1920-1930, by Size Groups
State

Hational
Number
Loans and
of
investments
banks

Size group
l o a n s and i n v e s t m e n t s

Number
of
banks

Loans and
investments

Under $150,000
150,000 - 250,000
250,000 - 500,000
500,000 - 750,000
750,000 - 1,000,000
1,000,000 - 2 , 0 0 0 , 0 0 0
2,000,000 - 5,000,000
5,000,000 - 10,000,000
10,000,000 - 50,000,000
50,000,000 and over

-27.4
-35.5
-31.s
-24.9
-1S.1
-2.3
+l4.6
+16.1
+36.2
+6S.6

-27.5
-35.5
-31.6
-24.2
-17.8
-1.1
+15.6
+18.7
+34.4
+183.1

-2.9
-7.6
-21.6
-26.4
-10.9
-7.2
+25.0
+18.1
+9.8
+13.5

+10.0
-9.8
-21.5
-25.9
-10.7
-4.7
+27.0
+21.0
+5.0
+67.7

-25.1

+4i.4

-9.7

+23.9

Total

These t a b l e s indicate t h a t changes during the decade from 1920
to 1930 in volume of b u s i n e s s , as well as in number, have been more s t r i k i n g




- ue in respect to State banks than in respect to national banks.

The smaller

State "banks l o s t far more "business than the smaller national banks; and
State "banks with loans and investments of $50,000,000 and over gained far
more than national "banks in the same size group.

State "banks with from

$10,000,000 to $50,000,000 of loans and investments increased t h e i r volume
of "business 3^ Pe*" cent, while national "banks in the same group increased
t h e i r "business only 5 per cent.

State banks with over $50,000,000 of loans

and investments increased t h e i r business during the decade IS3 per cent,
while national banks in the same group increased t h e i r business 68 per cent*
Only in the size groups having from $2,000,000 to $10,000,000 of loans and
investments did the growth of business of national banks exceed that of
State banks.
Table 20 compares for various dates the loans and investments
of the twenty l a r g e s t banks of the country, exclusive of mutual savings
banks, with those of a l l banks.

The banks included are the twenty largest

for each year respectively; they are not necessarily the same ones from
year to year.

Only four banks in the l i s t for 1900 appeared under the

same name in 1931*

Year
(June 30)

1900
1920
1925
1926
1927
1928
1929
1930
iq^i

Loans and
investments,
a l l banks i n
United States . .
(000.000 " o m i t t e d ' ^ 1 '
$ 5,939
36,271
41,212
1+3,447
H5.0S7
47,935
48,843
48,294
44.457

Loans and
investments,
20 l a r g e s t banks
in United States
(000.000 o m i t t e d ^ 2 )
$

R a t i o , 20
largest to
t o t a l U. S.
(per cent)

899
5,018
C\J




Table 20 - P r o p o r t i o n of B u s i n e s s of A l l S t a t e and N a t i o n a l Banks
Held by the 20 L a r g e s t Banks

6,820
7,702
8,698
10,379
11,999
12.124

(1) Prom annual reports of the Comptroller of the Currency,
Mutual savings and private banks are not included.
(2) From Rand McNally Bankers D i r e c t o r i e s .

15.1
13.8
15.2
15.7
17.1
18.1
21.2
24.8
27.^

- 47-

In the right hand column of the above table the ratio of loans
and investments of the twenty largest banks to the loans and investments of
all banks is shown as a percentage. This ratio decreased between 1900 and
19201 the period during which the number of b r . s in the country so greatly
aJc
increased; but from 1920 to 1931 i* doubled, so that in 1931 the twenty
largest banks, which were not quite a tenth of 1 per cent of the total number
of active banks, held 27 per cent of the business of all banks, as measured
by loans and investments. The aggregate holdings of the twenty largest banks
increased more than thirteen times between 1900 and 1931> while the aggregate
holdings of all banks increased seven times. In 1900 the largest single
bank had loans and investments of $120,000,000 and was the only bank with
more than $100,000,000; whereas in 1931 the largest- single bank had
$1,760,000,000, and there were two others with more than $1,000,000,000.
Of the twenty largest banks, 13 ^ere national and 7 were State
in 1900; but in 1931 only 7 were national and 13 were State. Of the aggregate loans and investments of the twenty largest, a little more than a third
was held by State banks in 1900, but more than half by 1931*

Banks Grouped by Size of Community
In Tables 21 and 22 the banks are grouped according to the size
of the community in which they were located. The former shows the number
and per cent of the total in towns and cities of various sizes in 1920 and
in 1930, and the latter shovis the aggregate loans and investments held by
banks in various sized communities in the two years.^1'

(1) Tables XII and XIII in the appendix give the number of State and national banks in each State in 1920 and in 1930, grouped by size of town.
The aggregate loans and investments of these banks, similarly grouped,
are given in Tables XIV and XV of the appendix.




- us Table 21 - Distribution of State and National Banks in 1920 and 1930
by Size of Town
Hu.aiber
of
banks

Population
of town

Under 500
500 - 1,000
1,000 - 2,500
2 , 5 0 0 - 5i000
5,000 - 10,000
10,000 - 25,000
25,000 - 50,000
50,000 - 100,000
100,000 and over

1920
P e r cent
of
total

8,266

5,l47
5,6so

3,028
2,011
1.733
739
644
1,637

2g,SS5(1)

Total

Number
of
banks

28.6
17.8
19.6
10.5
7.0
6.0
2.6
2.2

19 ^0
Per cent P e r c e n t a g e
change
of
1920-1930
total
25.0
16.9
19.0
10.9
8.0
7.0

2,483
1,831
1,607

746
579

-30.9
-25.0
-23.4
-18*0
-9.0

3.3

5,713

3,s6o
4,353

-7.3

5.7

1,69>'-

2.5
7.4

+0.9
-10.1
+ 3.*?

100.0

22,866

100.0

-20.8

( 1 ) See note p. 27.

Table 22 - Distribution of Loans and Investments of State and National Banks
in 1920 and 193O by Size of Town

Population
of town

1920
Aggregate
Per cent
l o a n s and
of
investments
total
(000 o m i t t e d )

ITader 500
500 - 1,000
1,000 - 2,500
2,500 - 5,000
5,000 - 10,000
10,000 - 25,000
25,000 - 50,000
5 0 , 0 0 0 - 100,000
100,000 and over
Total

$

1,390,858
1,482,947
2,607,426
2,152,694
2,126,377
2,863,814
1,955,663
2,264,561
19 ,*>«?, 591

$36,149,931^

19^0
Aggregate
Per c e n t
l o a n s and
'
of
investments
total
(000 o m i t t e d )

Percentage
change
1920-1930

5.7

-28.4
-17.9
-14.0
+1.0
+10.1
+23.3
+27.9
+21.8

53.S

995,163
1,217,741
2,243,368
2,174,415
2,340,889
3.530,361
2,501,967
2,759,011
30,299,000

63.1

+56.9

100.0

$48,061,915

100.0

+33.0

3.8
4.1
7.2
6.0
5.9
7.9
5.4
6.3

$

2.1
2.5

4.7
4.5
4.9
7.3
5.2

(l) See note p. 27.




As would be expected from the distribution of banks by size of
loans and investments, the great majority of banks, both in 1920 and in

-U9-

1930, were located in small towns.

In 1930 a fourth of a l l the hanks were

located in towns of l e s s than 500 population, while 6l per cent were located
in towns of l e s s than 2,500 population.

In 1°,20 the percentages were even

greater.
Twenty-six per cent of a l l banks were located in towns of from
2,500 to 25,000 population in 1930, t h i s percentage "being s l i g h t l y g r e a t e r
than in 1920,

The actual number, however, in towns of t h i s size, was smaller

in 1930 than in 1920, the increase in the percentage being due to the great
decline in the number of banks in smaller towns.
Only 13 per cent, therefore, of a l l incorporated banks in 1930 were
located in c i t i e s of more than 25,000 i n h a b i t a n t s .

More than half of these,

or 7 per cent of a l l banks, were located in c i t i e s of more than 100,000
population.
The d i s t r i b u t i o n of the loans and investments of these banks i s
vastly different.

In 193^ the banks in towns of under 2,500 population,

embracing 6l per cent of the t o t a l number, had only 9 P e r cent of the t o t a l
loans and investments.

The banks in towns of from 2,500 to 25,000 popula-

tion, 26 per cent of the t o t a l number of banks, had only 17 per cent of the
t o t a l loans and investments.

The banks in c i t i e s of more than 100,000 i n -

h a b i t a n t s , only 7 per cent of the t o t a l number, had 63 per cent of the t o t a l
loans and investments.
The average size of banks tended to increase between 1920 and
1930 in towns and c i t i e s of a l l s i z e s , as i s shown by the fact that the
percentage declines were much l e s s and the increases more in respect to
loans and investments than in respect to the number of banks.

This i n -

crease in the average size of banks was very s l i g h t in the small towns,




- 50 -

however, and was progressively larger in proportion to the size of the
towns. Thus in towns of less than 500 population the number of banks
declined JL per cent during the decade, and loans and investments nearly
as much, or 2S per cent.

In towns of from 2,500 to 5,000 population the

number of banks declined 18 per cent, but the loans and investments increased 1 per cent.

In cities of more than 100,000 population there was

an increase of k per cent in the number of banks, and 57 per cent in the
loans and investments of banks.




CHAPTER III

FACTORS OF CHAN&E IN THE BANKING STRUCTURE

In the foregoing discassion of changes in the number, distribution, and size of hanks, no consideration has "been given to the mechanics
by which the changes were effected.

These factors will be discussed in the

present chapter.
No special analysis has been trade of the increase in the number
of banks before 1920. Both the number of suspensions, except for the years
from 1893 to 1897, and the number of consolidations were relatively small,
however.

The marked increase in the number of incorporated banks between

1900 and 1920 appears to have been due to two factors: the conversion of
private into State banks, and the organization of new banks.

Factors of Change from 1921 to. 1931
For the period 1921-1931 an analysis has been made of the various
factors operating to change the number of banks in operation, the purpose
being to show how many banks were newly organized, and how man?/ discontinued
by suspensions, consolidations, and voluntars'- liquidations.

Table 23 gives

a summarj'- of these factors of change for the eleven years from 1921 to 1931,
inclusive.

The net decline during the eleven years in the number of banks

has amounted to 10,051.

This was the net result of an increase of 5,117 in

the number of banks, largely through primary organizations, and a decrease
of 15,168, principally on account of suspensions and consolidations*




*• 5 1 r-

- 52 -

Table 23 - Factors of Change in the Number of State
and National Banks 1921-1931
Type of change (1)
Primary organization
Reopening of suspended "banks
Conversion from private "banks
Unclassified

Number of
increases
3,^99
1.307
268
^3

Suspension
Consolidation
Voluntary liquidation
Conversion to private banks
Unclassified
Total

Number of
decreases

8,916
5,519
700
16
17
5,H7

Net decrease in the number of hanks

15,168
10,051

(l) Definitions of these terms will be found in the appendix, p. 87 ff. In a few changes the information furnished was not sufficient to permit their classification.
In Table 2k- these changes are given in detail for each year
1921-1931 for State and national banks together.

In tables 25 and 26

they are given for State and for national banks, respectively.(2)

(2) The figures for State banks given in the tables of this chapter do
not include mutual savings and private banks. They are based on
compilations showing the number of banks as of the end of the year
and do not always agree with other tabulations, which, in some cases,
give the number of banks as of the reporting date nearest to the end
of the year. The State bank figures were built up from data furnished by the various State banking departments.




Table 24 - Changes i n t h e Number of Banks i n t h e U n i t e d S t a t e s
1921-1931, I n c l u s i v e ( l )
( S t a t e and n a t i o n a l b a n k s , i n c l a d i n g t r u s t companie s and s t o c k s a v i n g s banks)
Calendar y e a r
1928
1921
1924
1922
1929
1925
1926
1930
1923
1927
1931
iTumber of hanks a t
b e g i n n i n g of y e a r ( 2 )
29,218 29,030 28,832 28,408 27,732 27,2U0 26,299 25,1+81+ 24,719 23,712 21,895
I n c r e a s e i n number
of b a n k s :
by p r i m a r y o r g a n i zation
by r e o p e n i n g of
suspended banks
by c o n v e r s i o n from
p r i v a t e banks
unclassified

11-year
period

U07

U56

3S3

403

344

295

250

234

150

105

3,499

93

11s

68

108

81

160

127

53

69

155

275

1,307

60
4

46
_L

49
_J2

27

l4

IS

268

_9_

9
_J.

2

5

15
2

6

_5

22
1

2

——

629

578

57s

523

507

523

41+9

320

315

313

382

kj2

Total increase

12.
5,117
«J1
V>4

Decrease i n number
of b a n k s :
by s u s p e n s i o n
by c o n s o l i d a t i o n
by v o l u n t a r y l i q u i dation
by c o n v e r s i o n t o
p r i v a t e banks
unclassified

73S
373

579
363

924
461

636
566

1+79

628

392

623
327

532

635

767

792

8,916
5,519

1+8

35

51

SO

59

75

57'

71

57

68

99

700

,

1

1

2
2

4

2
3

2
1

l
l

1
2

im

16
17

1+61

3^3

305

2
—

1,292

2,213

—

3
S17

Net d e c r e a s e
Number of banks a t
end of y e a r ( 2 )

us

1,002

1,193

1,005

l,l|-6l+

1,261+

1,085

1,322

2,130

3,110

15,168

188

Total decrease

-3.
19s

424

670

U98

9I+1

815

765

1,007

1.817

2,728

10,051

29,030 28,832 2S,>+08 27,73S 27,240 26,299 25,484 24,719 23,712 21,895 19,167
1

1

I

1

1

I

1

!

1

I

!

I

(1) Corresponding information for individual States is given in Table XVIII of the appendix. In combining the
figures for State and national banks as shown in the present table, conversions between State and national
systems cancel out, and consolidations are the net difference between decrease and increase by consolidation.
(2) See note (2), p. 52.



Table 25 - Changes i n the jjfcanoer of State Banks in the United States
1921-1931, I n c l u s i v e ( l )
(State "banks, t r u s t companies, and stock savings "banks)
Calendar y e a r
1928
1924
1921
1922
1926
1927
1923
1925
1929
Number of S t a t e "banks
a t b e g i n n i n g of y e a r ( 2 )
I n c r e a s e i n number
of S t a t e b a n k s :
"by p r i m a r y o r g a n i zation
"by r e o p e n i n g
by c o n v e r s i o n from
p r i v a t e banks
by c o n v e r s i o n from
n a t i o n a l banks
by c o n s o l i d a t i o n of
national banks(3)
unclassified
Total

increase

Decrease i n number
of S t a t e b a n k s :
by s u s p e n s i o n
by c o n s o l i d a t i o n
by v o l u n t a r y l i q u i dation
by c o n v e r s i o n t o
p r i v a t e banks
by c o n v e r s i o n t o
n a t i o n a l banks
unclassified
Total decrease
Net d e c r e a s e
Uumber of S t a t e banks
a t end of y e a r

1930

11-year
period

1931

21,094 20,865 20,612 20,229 19,695 19,192 18,394 17,725 17,090 16,309 14,864

362
34

334
93

361
57

302
91

233
73

237
150

210
119

182
51

163
66

118
151

90
250

2,642
1,185

57

43

47

26

19

13

16

14

Q

6

2

252

8

5

19

15

18

21

15
_.

20

36

IS

19

194
^

_

1

4

_1

-h.

__5_

1

_i

_i

2

_ J

1
2

——

515

4S3

490

i+39

394

U26

369

269

277

296

361

4,319

U09
231

294
2S7

533
233

616
277

46l
282

801
333

545
407

422
39S

564
4ii

1,131
510

1,804
523

7.5S0
3,292

36

27

31

52

45

63

48

64

54

61

572

1

1

2

2

4

2

2

l

1

91
_

65

122

75

26

23

33
3

17
1

27
l

36
2

744

-5.
736

105
2

273

973

S97

1,224

1,03s

904

1,058

l,74l

2,426

I2,6l4

229

253

3S3

534

503

79S

669

635

781

1,445

2,065

8,295

—

1

3

8
—

20,265 20,612 20,229 19,695 19,192 12,394 17,725 17,090 16,309 14,864 12,799
(1) Corresponding information i s given by S t a t e s in Table XVI of the appendix.
(2) See note ( 2 ) , p . 52.
(3) This applies where two or more national banks consolidate and take out a Stats charter.




16
537
17

i

-t=\

Table 26 - Changes in the Number o^ National Banks in the United States
1921-1931, I n c l u s i v e ( 1 )
Calendar y e a r
1926
1927

1921
Number of n a t i o n a l banks
a t b e g i n n i n g of y e a r
I n c r e a s e i n number of
national banks:
by p r imary o r g a n i z a tion
by r e o p e n i n g
by c o n v e r s i o n from
p r i v a t e banks
~by c o n v e r s i o n from
State charter
"ay c o n s o l i d a t i o n of
State banks(2)
Total

increase

Decrease i n number of
national banks:
by s u s p e n s i o n
by c o n s o l i d a t i o n
by v o l u n t a r y l i q u i dation
by c o n v e r s i o n t o
S t a t e banks
Total decrease
Net i n c r e a s e ,

or

Net d e c r e a s e
Number of n a t i o n a l banks
a t end of y e a r
(1)
(2)
(3)
(4)

1922

1923

192H

1925

1928

1929

8,124

8,165

8,220

8,179

8,01+3

8,01+8

7 , 9 0 5 ( 3 ) 7,759

7,629

110
9

73

95

25

11

81
17

120
8

107
10

85
8

68
2

71
3

3

3

2

1

3

1

2

1

65

122

75

26

105

23

33

-

l

1

-

-

1

127

224

184

125

236

5,2
7^

107

h3

90

96

122
96

12

2

20

g

5

146

169

4i

55

1930
7,403

3

1931

11-year
period

7,03i( 1 +)

?
4

15
25

857
122

_

—

_

16

17

27

36

8

537

1

2

1

l

-

8

l42

129

90

102

48

1,540

118
81

123
129

21
160

13b

5Z

64
225

161
259

409
275

1,236
1,638

28

i4

12

9

7

3

7

8

128

ja

-15,

18

21

J£

20

Jk

18

J&

194

225

261

231

285

275

220

328

445

711

3,296

l43

146

130

226

372

663

1,756

73 .

5
in

136

7,629 7,403 7 , 0 3 1 ( 4 ) 6,368
8,165 S,220 8,179 8.0U3 8,048 7 , 9 0 5 ( 3 ) 7,759
Corresponding information is given by States in Table XVII of the appendix.
This applies where two or more State banks consolidate and take out a national charter.
Exclusive of one bank which suspended in 1926 but which was included in the December 31, I926 abstract of the
Comptroller of the Currency.
Exclusive of two banks which suspended in 193O but which were included in the December 31, I93O abstract of the
Comptroller of the Currency.




-5 6 ~
Viewed as a whole these figures show considerable turnover. The
annual average number of hanks in existence during the eleven year period was
25,979*

The total number of all changes, that is, of new organizations,

reopenings, suspensions, and discontinuances by consolidation, was 20,285*
This is twice the amount of the net change, and 78 per cent of the average
number of banks during the period.

It is greater than the number of banks

remaining at the end of the year 1931*

I* means that within eleven years one

bank either opened or discontinued for each bank remaining in operation.
In Table 27 the nine factors listed in the preceding table have
been combined into three

and shown for each year from 1921 to 1931*

Con-

versions from private banks have been included with primary organizations.
Consolidations represent the number of banks discontinued by consolidation,
rather than the actual number of consolidations.

Suspensions, voluntary

liquidations, and conversions to private banks have been added together, and
from this sum

subtractions of reopenings and net unclassified increases have

been made so as to obtain the number of banks permanently discontinued.

Table 27 - Changes in the Slumber of State and National Banks Each Year
1921-1931

Year

Uumber of primary organizations and conversions from
private banks

532
453
505

Decrease in
the number of
banks through
consolidations

305
392
327
373

Suspensions, conNet decrease
versions to private
in the
banks, and liquidanumber of
tions (less
banks
reopenings)

to 5

188

259
602
707
56O
83S
562
498
615

198
424
67O
498
94l
815
765

1921
1922
1923
1924
1925
1926
1927
1928
1929
1930
1931

425
358
313
265
2U3
156
107

566
532
635
767
79S

1,206
2,0-37

Total

3,767

5,519

8,299




too

363
461

1,007
1,817
2,728
10,051
i




CHA(ft"l7

CHANGES IN THE NUMBER OF BANKS
NUMBER

1921-1931

1000

Changes in the number of State and national banks eachyear
from 1921 to 193p' due to new organizations, consolidations
and suspensions

NUMBER

1000

- 58 -

These three types of change—primary organizations, consolidations, and permanent discontinuances—are illustrated in Chart 17. Two
things shown "by this chart deserve special emphasis. One is the fact that
throughout the period 1921-1931 there was a net decline in the number of
banks each year, and that this decline tended to increase from year to
year.

The second is that throughout the period, while suspensions and

consolidations were on the increase, primary organizations were on the
decrease.
Primary Organizations and Voluntary Liquidations
The various factors of change considered above are not of equal
importance.

Throughout most of the decade suspensions and consolidations

v/ere numerically the most important of these factors. The following chapter will be devoted to consolidations. Because of their importance, however, a detailed analysis of suspensions has been made by the Committee
for presentation in another section of the material which it is prepared
to submit. Heopenings of suspended banks have operated to offset in some
degree the effect of suspensions, and are discussed in the section dealing
with suspensions.
Conversions to and from private banks are the least important of
the various factors listed in the preceding tables.

The changes which have

occurred in private banks are discussed in a later chapter.




Primary organizations are the most important factor operating to

- 59 -

increase the number of "banks in operation.

They are new enterprises "but

in some cases they have "been established to meet the need for "banking
facilities in the place of those lost " y suspension.
b
In Table 28 the number of primary organizations is given for each
year from 1921 to 193^ grouped according to the amount of capital stock
issued.

In all of these groups, except the two including banks with

$200,000 or more of capital stock, there has been a marked falling off in
the number of new banks nearly every year.

In Table 29 the number of pri-

mary organizations each year is given, grouped according to the size of town
in which they have been located.

In both large cities and small towns the

number of such organizations has declined year by year with few exceptions.
The number of primary organizations of national and State banks separately,
grouped by capital stock and by size of community, is given in Tables XIX
and XX of the appendix.

Table 28 - Number of Primary Organizations of State and National Banks
by Size of Capital Stock

Year

Under
$25,000

1921
1922
1923
192U
1925
1926
1927
1928
1929
1930
1931

100
71
69
7^
70
37
27
25
29
26
JI

Total

5H5




$25,000
to
50.000

158
139
135
132
108
89
S2
S3
61
•*7
*3
1,077

Amount of capital s tock
$ 50,000 $100,000 $ 200,000 $1,000,000
to
to
to
and
100.000
200.000
1,000.000
over

Sk
82
115
66
93
70

85
73
8k
65
80
72
53
56
Ul
22

Ho
kl

kk

kl

ks

k2
39
27
2k

Jtl

66
63
32
51
19
_I

706

61A

458

Sk

5
l
9
5

k

10
r
0

6
13
9
_i
69

Total

U72
U07
U56
3S3
U03
3I1H

295
250
23U
150
105
3,^99

- 6o -

Table 29 - Number of Primary Organizations of State and
National Banks " y Size of Town
b

Year

1921
1922
1923
192U
1925
1926
1927
192S
1929
1930
1931
Total

Population of; town
less 1,000 5,000 "i0;ooo
than
to
to
to
1,000 1 5,000 io»ooo. 100,000
t

177
131
123
116
11C
SI

130
10k
iks
116
Ilk

75
75

87
72
69
kc

5k

47

95

100,000
and
over

32

55

33

1,018

^72
U07

77
96

46
76

Total

78

62
5S

SO
63
80
70
52
68

31
25
ko
20
22
19
19
16

68

in

13

29
1,018

1

32
24
lU
11

487

706

383
I+03

3kk
295
250
23^
150
105

33
, 9

270

il-56

3,^99

Voluntary liquidations constitute a type of change which is difficult to analyze satisfactorily.. Theoretically it should include only solvent hanks which discontinue without direct corporate successors. Some hanks
in sound condition have found it impossible in recent years to make profits,
and have therefore paid.off their depositors and quit business. On the other
hand, there is reason to think that many closings that were reported as voluntary liquidations, particularly in earlier years, might properly he classed
as suspensions.

In many such cases the stockholders may have "borne all the

loss, however, while the depositors were paid in full.

It is also probable

that some of these hanks reporting as voluntarily liquidating were merely
reorganizing or turning their business over to successors.

In the latter

event, for each such voluntary liquidation there is a corresponding primary
organization, consolidation, or conversion.




- 61 -

Table 30 gives the major changes in the number of State and
national "banks, respectively, during the eleven years 1921-1931»

I* w i l 1

be noted that the overwhelming majority of the changes, "both of increases
through primary organization
dations, were of State banks.

and decreases through suspensions and consoliIn fact State banks comprise 75 P e r c e n t °f

the primary organizations, Bk per cent of the net suspensions (i.e., suspensions, less reopenings), and 70 per cent of the net reduction in the number of banks through consolidation.

This is, of course, principally a re-

flection of the numerical preponderance of State banks over national banks.
While State banks at the beginning of 1921 formed J2 per cent of all incorporated banks, by the end of 1931 they formed only 67 per cent of the total.
Table 30 - Changes in State and National Banks, 192O-I93I

Class of change

Primary organizations
Suspensions (net)(2)
Consolidations (net)(3/
Conversions in
Conversions out

State banks
Per cent
Number
of average
number in
of
operation
changes
(18,239)(D
2,61+2
6,395
3,889
194
537

national banks
Per cent
lumber of average
of
number in
changes operation

(7.7to)(D

35.1
21.3

857
l,2lU
1,630

11.1
15.7
21.1

1.1
2.9

537
19U

6.9
2.5

(1) Average of the numbers at the end of each year.
(2) Suspensions less reopenings.
(3) Decrease through consolidations minus increase through consolidations.
For the eleven year period primary organizations of national banks
were 11.1 per cent of the average number in operation, while primary organizations of State banks were lU.5 per cent of the average number in operation.




- 62 -

Permanent suspensions of national "banks were only 15»7 P e r cent of the
average number in operation, while for State "banks the percentage was
35.1 per cent.

In regard to reductions in number through consolidations

there was less difference "between the two types of banks.

Conversions
In the foregoing paragraphs no account has been taken of conversions from State to national,or national to State, charters. Daring
the eleven years there were 19U conversions from national to State charters and 537 from State to national charters.

Conversions to State char-

ters were 1.1 per cent of the average number of State banks in operation,
while conversions to national charters have been 6.9 per cent of the
average number of national banks in operation.




CBAPTEB IV
CONSOLIDATION i)

Since 1920 there has been a rapid increase in the number of bank
consolidations in this country. Prior to that time consolidations were
relatively infrequent, the annual number not reaching 150 until 1919. Few
States had comprehensive laws governing consolidations of banks and many
States had no laws at all on the subject. Prior to 1918 the National Bank
Act also failed to provide legal procedure for handling consolidations, so
that one or both of two national banks entering a merger had to be voluntarily
liquidated before they could unite.

The Act of November J, 1918i provided

for the merger of two or more national banks without any of them having to
liquidate.

It was not until 1927 that the act was further amended to facili(2)

tate the absorption of a State bank or trust company by a national bank.v '

Trend in Consolidations
In recent years, as the difficulties of bank operation have become aggravated and as suspensions have groim more serious, consolidations
have become much more frequent, and supervisory authorities in many cases
have encouraged mergers to avoid suspensions.

Consolidation has been used

frequently as a means of salvaging banks and strengthening the banking
structure generally.

The superintendent of banks in Alabama is quoted in

'*' Involving State and/or national banks.
(2)
See Appendix C for digest of Federal and State laws relating to consolidation, merger, etc., of banks and/or trust companies.




- 63-

- 6U-

the American Banker of October 7, 193°» a s saying that his department "is
giving its cooperation to the movement to consolidate small banks where
there is no economic necessity for their continued operation." At the meeting of the National Association of Supervisors of State Banks in Boston in
July, 1930, the Minnesota superintendent of banks reported that he had a
special department working on consolidations and that he believed consolidation was "the only permanent solution where the overbanked condition exists."^'

At the same meeting, the North Dakocc State examiner reported

that his State still had too many banks and that his office was trying to
eliminate them through consolidation; and the Wisconsin commissioner of
banking reported that he felt there were 25 per cent to 30 VeT

c611* "too

many banks in his State and that the program "within the next five or ten
years is to consolidate, merge

and liquidate down to a point where the

number of banks will be adequate to take care of the business of Wisconsin
and no more." A similar attitude toward consolidation has been expressed
by the supervisors in Oregon, Illinois, Missouri, and Mississippi.

In the

North Dakota consolidation law, which is one of the most comprehensive, it
is specifically stated:^)
"The purpose of this Act is remedial, and it is intended
to remedy a well understood condition existing in the banking
business of the State of North Dakota, a part of which condition is the need of larger and stronger banking institutions
. . . and to the end that such conditions may be remedied to

(1) Reported in Supplement to the U. S. Daily, August k, 1930.
(2) North Dakota Banking Law Pamphlet. 1929, sec. 5191c23, p. 5S.







- o5 -

the utmost extent possible, this Act shall " e in all things
b
literally construed, for the accomplishment of its ultimate
purpose."
Table yi and Chart 18 show how much more numerous consolidations
have been in recent years than in the first two decades of this oentury.
Prior to 1910 the annual number of consolidations was less than 100, and
in the second decade it was between 100 and 200.

In 1926, however, the

number reached U52 and in 1931* 755*
Table 3 1 - Number of Bank Consolidations Involving
State and/or National Banks
Year
1900
1901
1902
1903
190U
1905
1906
1907
190S
1909
1910
1911
1912
1913
191H
1915

Number of
!r
consolidations i Year

20
kl

50
37
63
69
56
5+
>
97

so

126
115
135

113
1U5

1U6

1916
1917
1918
i 1919
! 1920
1921
1922
1923
192I+
1925
1926
1927
| 1928
! 1929
; 1930
1 1931

Number of
consolidations

136
125
113
178
172
293
323
318

367
35S
!+52

55^
512
601
735
755

.1
Sources: Figures for 19OO to 1920 inclusive were
taken from the Banking Inquiry 1925, Vol. VI,
which was prepared under the direction of Dr.
H. Parker Willis. Figures for 1921 to 193I
inclusive were compiled by the Federal Reserve
Committee on Branch, Group, and Chain Banking.




66 -

CHART 18

NUMBER

NUMBER OF BANK CONSOLIDATIONS
1900-1931

Number of consolidations, mergers, absorptions, etc.* involving State and/or national banks each year, 1900-1931

-67-

Number of State and National Banks Consolidated
Consolidations as tabulated in this study include mergers and
amalgamations, the essential fact in each case being that the business of
two or more going banks becomes concentrated under one charter and one
management.

Consolidation also includes purchases by one bank of the busi-

ness of another, even though in such cases consolidation in a legal sense
is not always effected. (1)
If every consolidation involved two banks only, one of which
clearly absorbed the other, the statistical description of consolidation
would be simple. The number of banks participating in consolidation would
be twice as large as the number of consolidations, and equal to both the
number of banks discontinuing and to the number continuing. Moreover, the
participating hanks could always be identified as discontinuing or continuing, and could always be described as to their size, age, location,
and status as State or national. While in most cases there are only two
banks party to a consolidation, there are numerous instances in which the
number may be as many as five or six or more.

In some instances one bank

absorbs another without loss of its own identity, but in other cases the
identity of every participant is lost.
Table 32 gives for the period 192I-I931 the number of consolidations, the number of banks consolidated, the number of banks emerging from
consolidations, and the number of banks discontinued by consolidations.

' 1 ^ See appendix, p. 87» for definition of consolidation.




- 6s -

Table 32 - Bank Consolidations, 1921-1931

lumber, of
Year consolidations
1921
1922
1923
192^
1925
1926
1927
192S
1929
1930
1931
Total

Kumber of
banks
consolidated

293
3S3
318
367
352

582
725
615
715

1+52

891+
1,016

esk

55^
512
601
735
755

1.560

5,328

10,1+93

991
1,216
1,1+95

Humber of
banks emerging
from
consolidations

277
333
288
3U2
321
^33
U50
459
581
728
762

KSl^

Number of
banks discontinued by
consolidations (1)

305
392
327
373
363
1+61

566
532
635
767
798
5,519

(l) Discontinued is used in this chapter in the sense that the separate corporate existence is terminated and the number of banks
thereby reduced. The business of these banks is, of course,
carried on by the emerging institutions.

A difference is noted between the number of banks emerging from
consolidations and the number of consolidations.

It has frequently hap-

pened, particularly in California, that a large bank arranges to absorb
several smaller banks at the same time. Each transaction is separately
negotiated between the continuing bank and the absorbed banks, and it has
seemed proper to count as many consolidations as there were absorbed banks,
but the absorbing bank is counted but once in the emerging banks. On the
other hand, several banks may negotiate mutually for union into one, in
which case the whole transaction has been counted as a single consolidation,
even though all the banks may not be taken in on the same day.




The number of banks consolidated is necessarily increased by the




-69-

fact that the same "bank may participate in one consolidation after another.
This is true especially of large "banks, which may go through several consolidations in the course of a single year. The number of hanks involved
in consolidations as shown in the tahle, therefore, does not represent
10,^93 different hanks.

In the numher of hanks consolidated the same hank

is counted as many times as it participates in consolidations, except that
in California the large hanks ahsorhing numerous smaller institutions
are counted only once for the year.
The numher of hanks emerging from consolidations also involves
the same kind of duplication, since a given hank may pass through one consolidation after another.

The numher of hanks emerging from consolidations

as shown in the tahle, therefore, does not represent 4,97*+ different hanks.
Statistics of hanks discontinued " y consolidations do not involve
b
any duplication hut it is often impossible to say which particular hank is
the one discontinued.

In some consolidations the discontinuing hank may

he identified, as when a large hank ahsorhs a small one. In numerous cases,
however, where hanks of equal size comhine, no such identification can he
made.

Sometimes all the hanks participating in the consolidation discon-

tinue, in a legal sense, and a new one emerges. Names, whether continued,
discontinued, comhined, or newly devised, cannot he depended on as evidence
on this point.
Size of Banks Consolidated
Of the 10,^93 State and national hanks consolidated during the
years 1921-1931, 9,512 had paid-up capital of less than $1,000,000 «aeh and

- 70 -

4,2^+5 hacL capital of less than $50,000 each. As Table 33 shows, however, the
rate of participation of small hanks in consolidations was much below that
of the larger hanks. Among hanks with capital of less than $100,000, there
were less than 35 hanks consolidated for every 100 hanks of the size in existence in 1920. On the other hand, there were 8k hanks per 100 entering
consolidations in the size class of capital $200,000-$1,000,000. For every
bank with capital in excess of $1,000,000 in 1920, two were consolidated
during the period.
was

However, the nat-aral growth of banks during the period

responsible for the existence of more banks in this size group at

the end of the period than was the case at the beginning.
Table 33 - Number of State and National Banks Consolidated
by Size of Capital Stock, 1921-1931

Size group
c a p i t a l stock

Number of
banks
consolidated

Number of
a c t i v e banks
June 30, 1920

Number
consolidated
per hundred
active banks

Under $25,000
25,000 - 50,000
50,000 - 100,000
100,000 - 200,000
200,000 - 1,000,000
1,000,000 and over

1,785
2,460
1,283
1,720
1,661+
981

S,256
3,778
5,726
3,698
1,993
1+31+

21.6
28.0
32.9
1+6.5
S3.5
226.0

10,1+93

2S.SS5

36.3

Total

Out of the total of 5,519 banks discontinued by consolidations,
l+,55g were in towns of less than 100,000 population.




These are the towns




« 71 -

where small tanks are most numerous. Table 3 - presents figures of banks
^
discontinued " y consolidations according to the size of the town in which
b
they were located.

Table 3U - Number of State and National Banks Discontinued byConsolidations by Size of Town, 1921-1931
Number
discontinued
per hundred
active banks

Population
of town

Number
discontinued
by
consolidations

Number of
active banks
June 30, 2920

Under 500
500 - 1,000
1,000 - 2,500
2,500 - 5,000
5,000 - 10,000
10,000 - 100,000
100,000 and over

1,213
676
S50
525
426
86s
961

8,266
5,1^7
5,680
3,028
2,011
3,116
1,637

13.1
15.0
17.3
21.2
27.9
58.7

5,519

28,885

19.1

Total

lk.J

Consolidations Involving; Two or More Towns
Of the 5»519 banks disappearing by consolidations in the years
1921-1931, 3,977 consolidated in each case with a bank in the town of
its own location.

In 1,5^2 instances the bank consolidated with a

bank in another town, 736 of the cases being in thirteen States permitting branches outisde the head office city, as shown in Table 35.
California accounted for more than, half of the 736.




- 72 -

Table 35 - Relative Frequency of Discontinuances Through Consolidations
Involving Two or More Towns by States, 1921-1931

Total number of
banks discontinued
by consolidations

State

States permitting
"branches outside
head office city
Arizona
California
Delaware
Georgia
Louisiana
Maine
Maryland
Sort*! Carolina
Ohio
Rhode Island
South Carolina
Tennessee
Virginia
Total of 13 States
All other States
Total all States

Number of banks
discontinued by
consolidations
involving two
or more towns

29
530
2
IC5

IS
U39
-

Per
cent

62.1
S2.8
-

ja

27.6
39.7
52.3
35.^
U4.3
11.5
42.9
51.g
23.6
21.6

1,1+63

736

50.3

4,056

so6

19.9

29
27
21
17
5^
22
3
57
30

SB

36

ks

122
191
7
11c
127

SS

5,519

1,5^2

27.9

State and National Banks Discontinued
by Consolidations
Since 1926 the reduction in the number of banks in the United
States through consolidations has been greater than the increase from new
incorporations.

In 1931 there were only 105 new incorporations but 79S

banks disappeared through consolidations.
State and National Banks. - Table 36 shows separately State and
national banks discontinued each year during 1921-1931 by consolidations.




- 73 -

In the eleven year period there were 3«889 discontinuances of State banks
" y consolidations, or 21.3 P e r c e n t of the average annual number (18,239),
b
and 1,630 discontinuances of national hanks, or 21.1 per cent of the average
annual number (7,7^-0)•
Table 36 - State and National Banks Discontinued
Through Consolidations, 1921-1931
Year
1921
1922
1923
19 2U
1925
1926
1927
1928
1929
1930
1931
Total

State
banks

231
286
232
277
282
333
U07

39s

National !
State and
national banks
banks

7^
106
95
96
81
128
159
13U
224
258

411
509
523

27«>

3.SS9

1,630

^05
392
327
373
363
461
566
532
635
767
79s
5,519

Geographic Distribution. - Of the 5,519 banks discontinued by
consolidations during 1921-1931» 1»*+13 were in the Western Grain States.
In other districts such as the North Central States and the Southwestern
States, where there are a large number of individual banks, there were also
many consolidations.

Owing to the absorption of individual banks into

branch systems in California the number of consolidations in the Pacific
Coast States was large. Table 37 shows banks discontinued through consolidations by geographic divisions by years.

« 7^ -

Table 37 - Banks Discontinued by Consolidations by Geographic Divisions

Year

1921
1922
1923
192U
1925
1926
1927
192S
1929
1930
1931
Total




Rocky
Middle North
Southern South- South- Western
New
Moun- Pacific United
Atlan- Ceneastern western Grain tain Coast States
England tic
tral Mountain

12
13
11
g

5

23
28
10
+
27
29

8
g
12
15
11
28

81
76
109
101
122

131

680

kk

32

95

15
29
21
22
29
28
31
25
32

161

53

kk
46

kk
37
66
68
80
203_

M

876

359

28

55
28
33
35

67
33
32

65

59

26

82

3*

69
97

21
33
27
21

7*
ki

121

108
157
121
1U6
190
207
177

U52

693

1,U13

kk
3*
32
US

38
52

56
70
82
107

kl
Ik
59

kk
55

305
392
327
373
363

2k

ll
+
1*3
78
16
+
29

28

Jo

532
635
767
798

263

652

5,519

2k
13
12

l-l
lb

566

CHAPTER V
PRIVATE BANKst1)

As already pointed out, private tanks were formerly of greater
importance in the American banking structure than they are now.

The change

that has occurred in the relative importance of private banks and incorporated "banks has been attended by a change in both public and official attitude. A hundred years ago incorporation was distrusted and disapproved by
a large body of opinion. The prohibition upon banks attempted by several
of the Western States at various times before the Civil War was mainly a
prohibition upon incorporated banks, and appears to have left individuals
free to engage in deposit banking as much as they pleased.

At the present

time, however, private banks are prohibited in most States, and even where
they are not there is a general preference for the incorporated form of
business.
The legal status of private banks is summarized in Table 3^, giving
the names of the States in each of five classes: (l) those in which private
banks are prohibited; (2) those in which existing private banks may continue,
but in which no new ones may be opened; (3) those in which there are restrictions or regulations regarding the use of the term "bank" or "banker" by
private banks; (h)

those in which there are varying degrees of supervision

over private banks; and (5) those in which private banks are subject to sub(2)
stantially the same regulations as incorporated banks.
(1) The June 30. 1920 figures as given in this chapter exclude 386 private
banks in Illinois, most of which were converted to State banks before
the end of the year because of a law prohibiting the operation of
private banks after January 1, 1921. See note p. ZJ.
(2) In a few cases States are classified in two of these categories, e.g.,
when the opening of new private banks is prohibited, and those remaining
in operation are subject to supervision. This summary is based upon a
digest of State laws relating to private banks and bankers prepared in
1931 " y the counsel of the Federal Reserve Board, with the assistance of
b
counsel for the Federal reserve banks.




- 75 -

- 76Table 38 - Summary of the Legal Status of Private Banks
in the Various States in 1931
Prohibition or
regulation of
the use of
Private banks
the term "bank"
prohibited
or "banker" by
private banks
Connecticut Georgia
Arizona
California
Florida
Iowa
Delaware
Louisiana
Idaho
Illinois
Kansas
Maryland
Kentucky
Michigan
Massachusetts
Louisiana(l) Missouri
Minnesota
Maine(2)
Montana
South Carolina
Mississippi
Ohio
Texas
Nebraska
Tennessee
North Dakota Texas
Oklahoma
Virginia
Oregon
Rhode Island
Utah
Vermont
Washington
West Virginia
Wisconsin
Wyoming

Subject to
Subject to subspecial regula- stantially the
tions: varying
same reguladegrees of
tions as incorsupervision
porated banks

Opening of
new private
banks
prohibited

,,

,

1

j

1

•

1

.

1
1

.1

.

•

•

••

IIIII

1 imim
1

'

1. 1 1

'

ir 1 1

Arkansas
Colorado
Connecticut
Indiana
Missouri
Montana
New Hampshire
New Jersey
New Mexico
New York
Ohio
Pennsylvania
South Carolina
Texas

'

1

•

111

Alabama
Arkansas
Colorado
FloridaKansas
Minnesota
Missouri
Montana
Nevada
New Hampshire
New Mexico
North Carolina
Ohio
South Dakota
Tennessee

1

(1) Not prohibited, but the transaction of private banking business is of
doubtful legality.
(2) Subject to certain limited exceptions, e.g., corporations-may receive
employee deposits.




Table 39 - Distribution of Private Banks in 1920 and
1931 by States(l)
State

Number of private ban-lcs
June 30. 1920 June 30. 1931

Indiana
92
17^
Michigan
213
Iowa
223
%
Texas
17b
67
Ohio
Ikk
ks
Georgia
kl
3?
Pennsylvania
111+
26
28
Maryland
22
New York
IU5
20
Connecticut
New Jersey
0
Virginia
3
7
Kansas
k
3
Alabama
2
g
South Dakota
2
6
Montana
g
l
Arkansas
l
U
l
Missouri
3
New Mexico
l
l
South Carolina
1
1
_
Other States
13
Total
1,350(2)
50k
(1) See Table II of the appendix, p. 95.
?j.
(2) In Illinois 386 private banks are omitted from
these figures. See note p. 27.

S

- 77 -

Table 39 gives the distribution of private banks by States

in

1920 and 1931. Statistics of private banks are quite unsatisfactory as
it is often difficult or impossible to tell whether a given concern is
a private bank or not. For instance, there are numerous concerns, especially in the large cities, whose function is primarily the" remittance
of money for immigrants and the sale of steamship tickets, and though they
are called private banks there is little evidence that they do what is
usually recognized as commercial banking.

Such concerns, to the extent

that their functions are known, have been omitted from this study.
Moreover, private banks have not in general been answerable to
supervisory authority, and therefore no comprehensive official records
exist, either of their number or of the volume of their business. The
large investment banking houses, many of which are generally understood
to have some commercial business, are not included in any of the Committee's figures.
In view of these circumstances, the tables that follow are presented as only partially descriptive of private banking.

Of the 1,350

private banks reported in operation on June 30, 1920, figures relating
to the volume of business are available for only 1,007; and for the 59S
private banks reported in existence on June 30» 1930, statistics of size
are available for only 462. Tables 1*0, Ul, and 1 2 show the distribution
+
of these private banks in 1920 and 193° " y size of capital stock, by size
b
of loans and investments, and by size of towns in which they were situated.




- 78 Table 4 0 - Distribution of Private Banks in 1920 and I93O "y
bSize of Capit al(D
June 30, 1920
Size group
capital stock

Under $15,000
15,000
15,000 - 25,000
25,000
25,000 - 50,000
50,000
s
50,000 - 100,000
100,000
100,000 - 200,000
200,000 - 500,000
500,000 - 1,000,000
1,000,000 - 5,000,000
5,000,000 and over
Total(l)

Number
of
"banks

5

Aggregate
capital
(000 o m i t t e d )

il

118
117
57
63
20
25
5
8
1
—

1,007®

$ ^,503
1,110
2,342
2,925
1,934
3,150
1,285
2,500
703
2,218
500

P e r c e n t a g e change
1920-1930
Aggregate
Number Aggregate
Number
capital
capital
of
of
stock
banks (000 omitted) banks
June 30, 1930

221
51
53
60
17
28
13
12
2
3
2

-

$23,170

-

462

$ 2,022
780
1,052
1,525
570
1,1400
902
1,200
246
990
1,050
-

$11,737

-57. 4
-31.1
-55.1

-55.1
-29.7
-55.1

-Us. 7

-47-9

-70.2
-55-6
-35.0
-52.0
-60.0
-62.5
+100.0

-70.5
-55-6
-29. s
-52.0
-65.O
-55.4
+110.0

-

-

-54.1

-1+9.3

(l) Figures as to size are not available for 3^3 private banks reported in existence
in 1920 and I36 in 1930. A classification by size is not available for a later
date than June 30, 1930*
(2) In Illinois 386 private banks are not included. See note p. 27.
Table 4l - Distribution of Private Banks in 1920 and I93O by
Size of Loans and Investments(l)
P e r c e n t a g e change
1920-1930
Aggregate
Aggregate
Aggregate
Number
Number
Number
loans and
loans and
loans and
of
of
of
investments
investinvestments
banks
(000 o m i t t e d ) banks (000 o m i t t e d ) banks
ments
June 30, 1920

Size group
loans and investments

Under $150,000
150,000 - 250,000
250,000 - 500,000
500,000 - 750,000
750,000 - 1,000,000
1,000,000 - 2,000,000
2,000,000 - 5,000,000
5,000,000 - 10,000,000
10,000,000 - 50,000,000
50,000,000 and over
Total(l)

June 30, 1930

518
207
188
50
18
22
4

$ 39,230
39,603
63,209
29,967
15,275
28,328
13,349

236
92
87
20
l4
11
2

$ 19,264
17,472
29,21+6
11,581
11,977
13,725
6,234

-54.4
-55-6
-53.7
-60.0
-22.2
-50.0
-50.0

-50.9
-55.9
-53-7
-61.4
-21.6
-51.5
-53.3

1,007(2)

$228,961

1+62

$109,505

-54.1

-52.2

(1) Figures as to size are not available for 343 private banks reported in existence
in 1920 and 136 in 1930. A classification by size is not available for a later
date than June 30, 1930.
(2) In Illinois 3^6 private banks are not included. See note p. 27.




- 79 -

Table k2 - Distribution of Private Banks in 1920 and I93O by
Size of Tovna(l)
June 30, 1920
Population
of town

Number
of
banks

Under 500
500 - 1,000
1,000 - 2,500
2,500 - 5,000
5,000 - 10,000
10,000 - 25,000
25,000 - 50,000
50,000 - 100,000
100,000 and over

TotalC1)

W\3
238
109
29
2k

Aggregate
loans and
investments
(000 omitted)

$ 61,385
58,669
Ho,766

June 30, 1930
Number
of
banks

Aggregate
loans and
investments
(000 omitted)

Percentage change
1920-1930
Number Aggregate
loans and
of
banks investments

228
101
61
10

$ 32,251
2UJ26
2^,05^
6,216

7
3

M35
i,U7S
331
5,087

-65.5
-70. s
-66.7
-57.9
-Ho.9

-96.6
+43.H

-1+9.2

-57.6
-1+U.0

-H7.5
-57.9
-Hl.O
-61.5
-66. k

9

16,1^3
12,016
2,H01

19
22
103

9,729
3,5^8
2H.30H

13
_J1

11,327

-71.3

-53.H

$22S,96l

H62

$109,505

-5U.1

-52.2

1,007( 2 )

s

-38.H

^3
(1) Figures as to size of town are not given for 3 + private banks reported in
existence in 1920 and I36 in 1930* -• classification by size is not available
&
for a later date than June 30. 1930.
(2) In Illinois 386 private banks are not included. See note p. 2~[.

The private banks included in these figures are mostly small
banks.

Only 7 in 1930 had more than $100,000 of capital, and more than

half had $15,000 or less of capital. Only 2 of those reporting in the
same year had over $2,000,000 of loans and investments, and only kj more
than $500,000. The majority had less than $150,000 of loans and investments.
Nearly half of these reporting private banks were located both
in 1920 and in I93O in towns of less than 500 population, and about fourfifths in towns of less than 2,500 population.

About 10 per cent, how-

ever, were located in cities of more than 50,000 population.
Tables kj, and kk give for 1920 and for 1930, respectively, the
number of private banks reported in each size group in each geographic
division.




- go Table 43 - Number of Private Banks in 1920 by Size of Loans and
Investments and " y Geographic Divisions (1)
b
South- South- Scuti- West- Rocky P a New Middle North
e r n e a s t - r r e s t - e r n Moun- c i f i c
A t - CenEnMoun- e r n
e r n Grain t a i n Coast
gland lantic t r a l
tain
_
_
_
21
50
Under $150,000
91 272
75
9
150,000 - 250,000
2
2
7
13 134
49
2 9 ) , o o o - 500,000
11
12
70
2
1
87
5
500,000 - 750,000
1
2
1
1
23
4 18
750,000 - 1,000,000
l
2
2
8
1
4
1,000,000 - 2,000,000
q
1
3
3
6
2,000,000 - 5,000,000
l
1
l
1
5,000,000 - 10,000,000
10,000,000 - 50,000,000
„
50,000,000 and over
—
—
Size group
l o a n s and investments

_

TotalU)

124

«

52^2)

231

77

32

518
207
1SS
50
IS
22

4

'-

1,007( 2 )

2

16

Total

(1) Figures as to size of banks are not available for 3 + private banks in 1920.
^3
(2) In Illinois 386 private banks are not included. See note p. 27.

Table 44 - Number of Private Banks in I93O by Size of Loans and
Investments and by Geographic Divisions (1)

Size group
l o a n s and i n v e s t m e n t s
Under $150,000
150,000 - 250,000
250,000 - 500,000
500,000 - 750,000
750,000 - 1,000,000
1,000,000 - 2,000,000
2,000,000 - 5,000,000
5,000,000 - 10,000,000
10,000,000 - 50,000,000
50,000,000 and over
Total(l)

i
Soe.thNew Middle North e r n South- South-] West- Rocky P a At- Cen- Moun- e a s t - west-! e r n Moun- c i f i c T o t a l
Enern
e r n j G r a i n t a i n Coast
gland l a n t i c t r a l tain

_
—
—
-

25
6

137
60

6

*3
4
3
3

2
2
2
1
-

_
_
_
-

—
_

44

_i

_

250
1

—

14
2
2
—
1
1
1
"
-

28

_
—
—

31
19
29
11
7
1
—
—
-

_ZL

., r*.

_n
_

1
1
—
—
_
—
— 1
1
"*

21

47

9s

2

4
7
3
1

4

1

236
92
27
20
14
11
2

_
—
—
—

_

™

_
-

1

! 462

i

(1) Figures as to size of banks are not available for 136 private banks in 1930.

It will be noted that the bulk of the private banks in all size
groups were located in the North Central and Western Grain States. There
were also a number in the Middle Atlantic, Southeastern, Southwestern,




- 81 -

Rocky Mountain, and Pacific Coast States. Both New England and the Southern Mountain States had a few private "banks hut information concerning them
is too indefinite to permit distribution " y size groups.
b
In Table k$ the decrease in the number of private banks reported
is analyzed for the period since 1920. For the beginning of the period
1,290 private banks are reported and for the end 1+57> the net reduction
being 833*

The largest single factor of reduction was suspensions, which

accounted for H39 banks. The next was conversion to State charter, which
accounted for 252. During the period 113 private banks began business and
16 more that had been previously operating under State charter surrendered
their charters and continued as private banks.




Table ^5 - Changes in the Uumber of Private 3anks in the United States
1921-1931, Inclusive

192 h

1921
Number of private banks
at "beginning of year
Increase in number of
private hanks:
by primary organization

by reopening

1922

1923

1,290

1,191

1,119

1,036

17

9

-

l

22
1
+

Calendar year
1925
1926
1927

1928 r 1929

1930

1931

11-year
period

975

S93

S2k

760

713

655

551

16

5

7

9

11

11

3

-

2

2

-

-

5
3

1
1

113
16

u

2

2

1

1

_

lb

-

-

-

-

1

by conversion from
State banks
by consolidation of
State banks(l)

M

1

1

2

2

-

-

-

-

1

Total increase

26

IS

11

21

S

13

13

13

12

9

2

146

kk

23

23

80

10

lb

15

9

U39
111

10

IS

13

12

15

13

16

10

31
15
ik

58

9

s

x

3

52
3

33

11

37
6

35

5

161

57

^3

*7

26

19

13

16

1U

9

6

2

252

-~I

JL

_2

JL.

_i

jl

_2

J^

-

-

-

_Ii

125

90

9^

82

90

82

77

60

69

11U

96

979

99

72

S3

61

S2

69

6U

^

57

105

9U

233

Decrease in number of
private banks:
by suspension
by consolidation
by voluntary liquidation
by conversion t«
State banks
by conversion to
national banks
Total decrease
Net decrease
Ifumber of private banks
at end of year

?

-

•

!

U57
824
760
656
1,119 1,036
713
975
551
893
..
..
1
.1
i
(l) This occurs when two or more State banks surrender their charters, consolidate, and continue as a private bank.




1,191

CHAPTER VI
SUML1AKY

Important changes have occurred

during recent decades in the

number of hanks in the United States and in the absolute and relative
numbers of "banks of different sizes. The nost noteworthy of these may
" e summarized as follows:
b
(1) A striking and sudden reversal of trend in the number
of banks occurred about the end of 1920, after which the discontinuance of hanks became as common an occurrence as the establishment of
banks had been during preceding decades. The total number of banks was
reduced from over 30,000 in 1920 to less than 20,000 in 1932.
(2) The chief factors reducing the number of banks between
1921 and 1931 were suspensions and consolidations. At the same time,
primary organizations, especially of small banks, declined rapidly in
number.
(3) Private banks, which were nearly as numerous as incorporated banks a half century ago, have come to be very few in number, and
those doing a commercial business are seldom of any considerable size.
(k)

The average resources of incorporated banks changed little

from 1870 to 1915, but increased threefold from 1915 to 1930, i.e., from

$916,000 to $2,7^6,000.
(5)

The average population per bank declined s t e a d i l y from about

9,000 in 1S77 to 3,500 in 192O, but increased s t e a d i l y a f t e r 1920 t o about
6,700 at the middle of 1932.




- 83 -

- 84 -

(6)

The average population per bank varies greatly among the

various States and geographic regions, hut has increased in all States sinoe
1920.

It is in the agricultural regions of the Middle West that the number

of banks is largest in proportion to the population.
(7) The decline in the number of hanks between 1921 and 1931
occurred chiefly among banks that -were relatively small.

There is still

a large preponderance of small banks, however, 58 per cent in 1930 having
less than $500,000 of loans and investments.
(8) The decline in the number of banks between 1921 and 1931
occurred chiefly in the agricultural sections, and several hundred towns
in which one or more banks were located a few years ago have at the present
time no banks in them,
(9) Notwithstanding the continued preponderance of small banks
in number, and the continued existence of a large number of banks of intermediate size, there was between 1920 and 1930 a growing concentration of
banking business in very large banks.

In nineteen thirty 13,315 banks

with less than $500,000 of loans and investments each, constituting 58
per cent of all banks, held 6 per cent of the loans and investments of all
banks; banks of intermediate size, numbering 9,450 and constituting about
41 per cent of all banks, held 53 per cent of the loans and investments
of all banks; and 101 banks with over $50,000,000 of loans and investments
each, constituting less than 1 per cent of the total number of banks, held
41 per cent of the loans and investments of all banks.

The proportion of

the total loans and investments of all banks held by the 20 largest banks







- 85 increased from 14 per cent in 1920 to 27 per cent in 1931.
(10)

In number, State banks continue to predominate over

national "banks both among the small "banks and among the very large "banks,
and with respect to the very large banks the relative number of State
institutions, during the period 1920-1930, continued to increase. During this decade it was only among banlcs of $2,000,000 to $10,000,000 of
loans and investments that the national system grew more rapidly than
the State systems. For nearly forty years the majority of incorporated
banks have been under State charter, and since 1920 the resources of State
banks have been greater than those of national banlcs. From 1920 to 1929
the growth in State banks was greater year by year than in national banks.




- S6-

APPENDIX A
Statistical Tables

- 27 FACTORS 01 CHANGE IN THE BANKING STRUCTURE

Explanation of Terms Used in Analyses of Changes
in the Number of Banks
1920-1931

In order to secure uniform procedure in listing and classifying
changes in the number of banks in the various States since 1920, the supervisory authorities were asked to compile the data in accordance with terms
specifically defined " y the Committee, It was not possible, of course, to
b
adopt all of the definitions and descriptive terms now in use, for by law
and by practice such terms as consolidation, merger, absorption, amalgamation,
conversion, liquidation, suspension, failure, etc., have different meanings
and applications in different States. The following terms were decided on.




State Banks are incorporated institutions chartered by the
State to engage in commercial banking with or without other
powers. They include trust companies and stock savings
banks. They do not include Morris Plan banks, mutual savings banks, private banks or bankers, or other financial
institutions even though these may be chartered, licensed,
and supervised by State authority.
Branches are not reported or enumerated as banks.
A Consolidation is the corporate union of two or more
going banks into one bank which continues under a single
charter, either new or old. The term is used not in a legal or technical sense, but in an economic sense, the essential feature being that the business of two or more going
banks becomas concentrated under one charter and one management. The method of effecting the consolidation, whether ~by
purchase of assets, assumption of deposit liabilities, exchange
of stock, or other procedure, varies with circumstances and
is unessential for the present purpose. What is here described as consolidation is frequently designated by the terms
"merger," "absorption," "amalgamation," "combination," or
"purchase," according to different points of view. It includes those cases where one bank absorbs another and turns
it into a branch. It also includes those cases where a given
bank is absorbed by two or more banks, which distribute its
business among themselves.
A consolidation is not a simple transaction like a conversion, a liquidation, a primary organization, etc., but is
almost invariably complicated by the fact that these other
transactions are incidental to it. That is, a consolidation
as often as not entails a voluntary liquidation and the issuance of a new charter; but these attendant circumstances

should not obscure the important fact that a concentration
of banking has been effected by the transaction as a whole.
T l h n two national banks consolidate under a State
fle
charter, or two State banks consolidate under a national
charter, the transaction is classified as a consolidation,
by which an increase in the number of State banks and a
decrease in the number of national banks is effected^ and,
respectively, an increase in the number of national banks
and a decrease in the number of State banks.
All the banks that are parties to a consolidation
must be open and in operation at the tine of the consolidation. The absorption or liquidation of a suspended
bank's assets by another bank is not a consolidation, but
is considered merely incidental to winding up the business
of a bank already reported as having suspended. On the
other hand, if the assets and liabilities of a weak bank are
transferred to another bank in order to avoid suspension!
the transaction is counted as a consolidation, and not as
a suspension.
A Conversion is the issuance to a going bank of a State
charter to supersede the national charter under which it has
previously been operating, or of a national charter to supersede a State charter. In other words, a charter in one system is given up and a new charter in the other system is procured.
Only simple conversions looking towards permanent operation under the newly issued charter and involving no other
change are to be counted as conversions. Many conversions,
of course, are effected merely as a necessary legal step in
a consolidation. In such cases the converted bank is absorbed and the new charter is surrendered shortly after the
conversion. Such conversions should be ignored and the
transaction reported simply as a consolidation; except that
if the temporary bank's existence runs over the end of the
calendar year and it consequently enters the record with
an end of year condition report, it should then be counted
as a conversion for the year in which it occurred, and as a
consolidation for the year following. This is necessary in
order to make the statistics of changes agree with the number
of banks shown in year-end abstracts of condition reports,
•Where a national bank surrenders its charter and is absorbed by a State bank which continues uninterruptedly under
its own charter, the transaction is not to be classed as a
conversion, for no new charter is issued in lieu of the old.
Instead it is classed as a consolidation.




#1

It is the custom of some authorities in their reports
not to show conversions as such, but to classify them as
liquidated banks or as newly chartered banks, according to
the point of view of the reporting authority. In this
study,, however, it is intended that all cases of actual
conversion be reported as auch, with the exception mentioned above of conversions which are involved with consolidation. The decreases by conversion in the number of
State banks are the same as the increases by conversion
in the number of national banks, and vice versa.
Conversion from a private bank is the issuance of a
State charter to an alrbady "existing private bank.
Conversion to a private bank is the surrender by an
incorporated StaHie" or national" bank of its charter, voluntary liquidation of its assets as a corporation, and continuance of its business as an unincorporated enterprise.
A Suspension is tho closing of a bank to the public
either" temporarily or permanently on account of financial
difficulties, either by supervisory authorities or by the
bank's board of directors, with or without ultimate loss
to depositors. The term failure" is often used as an
equivalent. If the assets and liabilities of a weak bank
are transferred to another bank in order to avoid suspension and the weak bank liquidates, the transaction is to
be counted as a consolidation, and not as a susponsion.
A Reopening is the resumption of operations by a suspendeU bank. The reopening may be attended by a change of
name and issuance of a new charter and still be classed
statistically as a reopening rather than a primary organization. A reopening consequent upon consolidation of two
or more suspended banks should bo classed as a single reopening. If a suspended national bank reopens as a State
bank, however, or vice versa, the transaction must be
counted as a primary organization and not as a reopening.
A Primary Organization is the chartering of a newly
organTzed bank, it can usually be distinguished without
difficulty from a consolidation, succession, or conversion of going banks, in spite of the fact that any of theso
transactions may require the issuance of a now charter, but
it will frequently bo hard to distinguish it from a reopening. The extent to which the stockholding interests, assets
and deposits of a suspended bank continue intact must guide
the judgment in determining whether to classify the bank as
a primary organization or a reopening. If a suspended national bank reopens as a State bank, however, or vice versa,
the transaction must be counted as a primary organization and
not as a reopening.




- •w Thore are numerous cases where the business of one or
more departments of a bank is sold to another bank, either
newly organized or already in operation. Such a newly organized bank is to be classed simply as a primary organization. If, on the other, tho transfer of assets occurred
between banks already in operation and both continue in
operation after the transfer, it is not to be reported at
all.
There are also cases where a banking office previously
operated as a branch is incorporated as a unit bank. Such
cases should be classed as primary organizations.
A Liquidation is the comparatively rare instance of a
going, solvent bank discontinuing operations, surrendering
its charter, and quitting business. Voluntary liquidations
legally incidental to conversion or consolidation should not
be reported separately, since they are implied in the conversion or consolidation itself. Suspensions should not be
reported as liquidations. If a bank's assets or the greater
portion of them are absorbed by another bank under some agreement whereby the latter assumes the liabilities of the former,
the transaction should be reported as a consolidation. If a
State bank is absorbed by a national bank, the transaction
should be reported as a consolidation and not as a liquidation.
No transaction should bo classified as a liquidation if it can
possibly bo classified otherwise.
A Succession is tho rochartering of a going bank under a
chang'ed name but by the sane chartering authority. A succession may be attended by a certain amount of reorganization,
but if it involves consolidation of two or more going banks,
the transaction should be classed as a consolidation and not
as a succession. Since successions as such do not change the
number of banks, they are not counted.




5V

Table I - Incorporated Commercial Banks and Trust Companies in the United Statos
1334-1931

Year

1834
1835
1836
1837
1838
1839
1840
1841
1842
1843
1844
1845
1846
1847
1848
1849
1850
1851
1852
1853
1854
1855
1856
1857
1858
1859
1860
1861
1862
1863
1864
1865
1866
1867
1868
1869
1870
1871
1872
1873
1874
1875
1876
1877

(Resources in millions of dollars)
State and
Stato banks
National banks
national banks
Number Resources Number Resouroes Number Resources

506
704
713
788
829
840
901
784
692
691
696
707
707
715
751
782
824
879
815
750
1,208
1,307
1,398
1,416
1,422
1,476
1,562
1,601
1,492
1,466
1,089

$ 1,185.4
725.9
165.8
349
154.8
297
151*9
272
154.6
247
156.0
259
201.5
325
259.6
452
264.5
566
178.9
277
237,4
368
395.2
586
405.9
671
506.9
631




506
704
713
788
829
840
901
784
692
691
696
707
707
715
751
782
824
879
815
750

*

66 $
467
1,294
1,634
1,636
1,640 !
1,619 1
1,612 j
1,723
1,853 1
1,968 i
1,983 !
2,076 '
!
2,091 !
2,078 |

Private j All
banks
banks
Numbor
Number

16.8
252.2j
1,126.5
1,476.3 !
1,494.5
1,572.1 |
1,564.1 j
1,565.7 j
1,703.4 1
1,770.8 j
1,851.2
1,851.8
1,913.2
1,825.7
1,774.3

1,208
1,307
1,398
1,416
1,422
1,476
1,562
1,601
1,492
1,532 $
1,556
1,643
1,931
1,908
1,887
1,878
1,937
2,175 1
2,419 j
2,245 !
2,351
2,662
2,762
2,709 j

i

i
i
i

1
|
1,202.2!
978.1 |
1,292.3 j
1,631.1 |
1,646.4 i
1,726.7
1,720.1
1,767.2
1,963.0
2,035.3
2,030.1
2,089.2
2,308.4
2,231.6
2,281.2
2,432
t

5,141

9&
- -Tri a b l e I - Incorporated Commercial Banks and T r u s t Companies i n t h e Unitod S t a t e s
1834-1931 (Continued)
(Resources in millions of dollars)
state and
State banks
National banks
Year
national banks
Number Resources Number Resources Number Resources
1878
1879
1880
1881
1882
1883
1884
1885
1886
1887
1888
1889
1890
1891
1892
1893
1894
1895
1896
1897
1898
1899
1900
1901
1902
1903
1904
1905
1906
1907
1908
1909
1910

510 $
648
650
683
704
788
852
1,015

891

1,471
1,523
1,791
2,250
2,743
3,773
4,188
4,188
4,369
4,279
4,420
4,486
4,738
5,007
5,651
6,171
6,890
7,970
9,018
10,220
11,469
12,803
13,421
14,348
19H 15,322
1912 16,037
1913 16,841
1914 17,498
1915 17,748
1916 18,253
1917 18,710
1918 19,404
1919 19,646
1920 20,635
1921 21,267




388•8
427.6
481.8
575.5
633.8
724.5
760.9
802.0
807.0
1,003.9
1,055.4
1,237.3
1,374.6
1,442.6
1,999.5
2,168.7
2,071.7
2,251.6
2,255.9
2,273.9
2,534.0
2,957.7
3,375,3
4,034.6
4,557.4
5,084.3
5,558.5
6,417.0
7,048.6
7,657.1
7,330.6
8,031.3
8,684.4
9,237.0
9,923.2
10,321.9
10,967.2
11,433.8
13,510.4
15,694.3
17,119.4
20,664.7
23,490.3
22,627.8

2,056
2,048
2,076
2,115
'2,239
2,417
2,625
2,689
2,809
3,014
3,120
3,239
3,484
3,652
3,759
3,807
3,770
3,715
3,689
3,610
3,581
3,582
3,731
4,163
4,532
4,935
5,327
5,664
6,046
6,422
6,817
6,886
7,138
7,270
7,366
7,467
7,518
7,597
7,571
7,599
7,699
7,779
8,024
8,150

$ 1,770.4
2,019.8
2,035.4
2,325.8
2,344.3
2,364.8
2,282.5
2,421.8
2,474.5
2,637.2
2,731.4
2,937.9
3,061.7
3,113.4
3,493.8
3,213.3
3,422.1
3,470.6
3,353.8
3,563.4
3,977.6
4,708.6
4,744.0
5,674.2
6,007.0
6,284.7
6,653.3
7,325.2
7,780.5
8,472.0
8,710.0
9,364.0
9,891.9
10,378.5
10,856.9
11,031.5
11,476.8
11,789.8
13,919.7
16,283.3
18,346.3
21,226.1
25,401.6
20,509,5

2,566
2,696
2,726
2,798
2,943
3,205
3,477
3,704
3,700
4,485
4,643
5,030
5,734
6,395
7,532
7,995
7,958
8,004
7,968
8,030
8,067
8,320
0,738
9,814
10,703
11,825
13,297
14,682
16,266
17,891
19,620
20,307
21,486
22,592
23,403
24,308
25,016
25,345
25,824
26,309
27,103
27,425
28,659
29,417 !

$ 2,159.2
2,447.4
2,517.2
2,901.3
2,978.1
3,089.3
3,043.4
3,223.8
3,281.5
3,641.1
3,786.8
4,175.2
4,436.3
4,556.0
5,493.3
5,382.0
5,493.8
5,722.2
5,609.7
5,837.3
6,511.6
7,666.3
8,319.3
9,708.8
10,564,4
11,369.0
12,211,8
13,742.2
14,829,1
16,129.1
16,040.6
17,395.3
18,576.3
19,615.5
20,780.1
21,353.4
22,444.0
23,223,6
. 27,430.1
31,977.6
35,465,7
41,890,8
46,891.9
43,137.3

Private
All
banks
banks
Number
Number
2,586
2,545
2,573
2,799
3,107
3,306
3,458
3,456
3,689
3,966
4,064
4,215
4,305
4,230
4,004
4,031
3,844
3,924
3,810
3,806
3,853
4,168
5,187
5,060
4,976
5,417
5,484
5,291
4,823
4,947
4,576
4,407
3,669
3,683
3,406
3,215
3,062
2,737
1,968
1,852
1,846
1,817
1,736*^
1,242

5,152
5,241
5,299
5,597
6,050
6,511
6,935
7,160
7,389
8,451
8,707
9,245
10,039
10,625
11,536
12,026
11,802
12,008
11,778
11,836
11,920
12,488
13,925
14,874
15,679
17,242
18,781
19,973
21,089
22,838
24,196
24,714
25,155
23,275
26,809
27,521
28,078
28,082
27,792
28,161
28,949
29,242
30,395
30,659

- 93 -

Table I - Commercial Banks and Trust Companies in the United States
1834-1931 (Continued)

Year

1922
1923
1924
1925
1926
1927
1928
1929
1930
1931

(Eesources in millions of dollars)
Private
ill
State and
State "banks
national banks
banks
national banks
banks
Number Eesources Number Resources Number Eesources Number Mftittber
20,789
20,654
20,028
19,573
18,994
18,119
17,440
16,728
15,798
14,323

$22,912,5
25,191.6
26,783.3
29,352.7
30,638.4
32,082.5
32,899.3
34,217.6
34,219.0
30,981.0

8,244
8,236
8,080
8S066
7,972
7,790
7,685
7,530
7,247
6,800

$20,697.9
21,502.2
22,555.3
24,338.8
25,302.6
26,566.5
28,492.9
27,425.2
29,072.4
27,598.6

29,033
28,890
28,108
27,639
26,966
25,909
25,125
24,258
23,045
21,123

$43,610.4
46,693.8
49,338.6
53,691.5
55,991.0
58,549.0
61,392.2
51,642.8
53,291.4
58,579.5

1,157
1,080
1,008
915
860
792
737
685
598
504

30,190
29,970
29,116
28,554
27,826
26,701
25,862
24,943
23,643
21,627

Includes 386 private banks in Illinois:,, most of which converted to State
banks before the end of the year because of a law -prohibiting private banks
after January 1, 1921.

Sources of Figures in Table I
_
National Banks. - Figures for national banks are taken from
the annual reports of the Comptroller of the Currency, 1931, op. 3 and
5 (for years 1863 to 1891, inclusive); 1920, pp. 279 et seq. (for years
1892 to 1920, inclusive); and 1921 to 1931 (for years 1921 to 1931, inclusive). Banks in Alaska and insular possessions are excluded.
State Banks. - Figures for State banks are taken from the annual reports of the Comptroller of the Currency, 1909, p . 912 (for years
from 1834 to 1862, inclusive, the figure for 1852 being interpolated);
1931, pp. 3 and 5 (for years from 1853 to 1891, inclusive); and 1892 to
1931 (for years from 1892 to 1931, inclusive). Banks in Alaska and the
insular possessions are excluded. Mutual savings banks are excluded.
Loan and trust companies and stock savings banks are included, save that
stock savings banks do not appear to be uniformly included -prior to 1892.
For most of the earlier years the figures both of number and
resources are lo^er than the true figures, on account of the incompleteness of reports by State authorities to the Comptroller of the Currency.
There are, moreover, differences among the States in the types of institutions under State supervision, and therefore in the bases of the
reports; and many States had no department or official responsible for
banking statistics until recent years.
For the years from 1877 to 1909, inclusive, more complete
figures than those given in this table are available for the number,
but not for the resources, of State banks, in the Publications of the
National Monetary Commission. Vol. 7, p . 248. The figures of the
Monetary Commission have not been used here because of the desirability
of using figures for the number of banks which correspond with those
for resources.



9+
Private Banks. - The figures for private banks are for most
years only approximations. Those for 1877 to 1909, inclusive, are taken
from the Publications of the national Monetary Commission, Yol. 7, p. 250,
and are based on lists in Etonians* Bankers Almanac, otherwise entitled,
The Bankers Directory; Homans* and Sharp & Alleiaan's Edition. The figures given in this directory are stated' to include "bankers and brokers
at New York City, Chicago, Boston, Philadelphia and Baltimore"; but in
most years the figures given by the National Monetary Commission are
smaller than those given in the directory, indicating that an effort was
made to omit those doing only a brokerage business. Figures for the
years from 1910 to 1919, inclusive, are taken from the Rand McNally Bankers' Directory. The sharp decrease between 1909 and 1910 is apparent
rather than real, being due to the fact that after 1910 the Rand McNally
directory listed a smaller number of private banks than Homans', Figures
for the years from 1920 to 1931, inclusive, were collected by the Committee on Branch, Group and Chain Banking with the cooperation of the Federal
reserve banks and the State banking departments. Tho marked decrease from
1920 to 1921 is due primarily to the outlawing of private banks in Illinois
on January 1, 1921.
For all banks, figures are as of June 30, or tho nearest reporting date. In tho early years, however, no uniform date can be assumed;
and those relating to private banks for some of tho recent years have been
obtained by averaging year-end figures.
In compiling this table, wherever irregularities in the sources
wore detected they wore rectifiod if feasible.




Table II - Number of Banks in Each State on June 30, 1900, 1920, and I93I

State

Alabama
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
D i s t . of Col.
Florida
Georgia
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire
New J e r s e y
New Mexico
New York
North Carolina
N o r t h Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode I s l a n d
South C a r o l i n a
South Dakota
Tennessee
Texas
Utah
Vermont
Virginia
Washington
West V i r g i n i a
Wisconsin
Wyoming
UNITED STATES

Number c
Incorporated
(State and natio
1900
1920

Number of
p r i v a t e banks(2)

igto

US
19
46
269
67
105
23
20

39

172
17
388
225
617
487
301
78
99
101
282
275
281
574
36
513

el

16k
14
594
93
153
115
46
644
57

5*
135
ill
209
40

Us

135

57

352
8

, ?

1900

1931

284
121
410
250
156

!*5
U5

59
39

265
738
222
1,498
880
l,10k
584
267
118
265
269

656

1,506
35U
1.5%
423
1,196
33
80
361
123
817
623
898
998
959
275
1.U22

33

1*61
694
5«6
1.548
133
88
k88

393

12b
217
22

340
970
160

S.73S

28,659

713
1,107
972
515
206
90
205
24s
672
933
267
1,100
165
727

g

515
51
904
32U
302
871
550
215
1,418
26
140
318
^33
1,176

96

84
U30
307
262
910
82
21,123

14"
49
8
619
228
534
81
44
l4
11
62
304
255
25?
14
108
21

75

2
2
6
9
1,086
31
6
276
11

37

319
10
26
56
19
190
13
l
39
32
10
129
11
5,187

1920

2
_

2

4

3

—

—
-

5
23

13
_
_

2
41
—

386
174

22

l

—
—
—

28

92

453

74
3
—
_

22
_

213

83

—

-

3
8

1
1

-

—

—

144
—

6

1
20
—
-

48
-

2
114

26

_

_

1
6

1
2

—

—

176

67

_

779

375

124
962
625
898
1,142
959
277
1.536

f3

53

462
700
546
1,724
133
88
495

_

3

2

174
89
116
346
31

1,736

504

13,925

393

340
970
162
30,395
1

( 1 ) Source: Annual reports of the Comptroller of the Currency.
elusive of mutual savings and private banks.
(2) For source see p. 93»




?3

80

963
67
80
191
130
399

-

267
1,101
166
727

33

57

588
7
66
170
23
1,680
124
159
716
126

1

59
39

222
1,884
1,054
1,927
1,3%
584
267
118
293
269
869
1,506
354
1,652
431
1,196

1,151
568
345
92
110
163
586
530
540
127
682

~
-

193
382

^5
45

53

_
_

_

14
1
145
2

7

286
37
322
410
250
169

267

88

221
25
1,007

38

1931

360
,g7
491
723
493
163

64
291
122
119
27
25

_

4

1900

8

11

¥1

I.S3

1931

_

40
8
18
22

37

487
723
398
140

1920

Number of
a l l banksv*r

l.S
805
1,181

975
515
206
90
227
248

755
933

69
521
52
92U
324
302
919
550

ijm
26
141
120
413
1,241
96
84
433
307
262
910
82
21,627

,

Figures are ex-

-"Salable III - Population per Bank in Each State in 1900, 1920, and 193l(l)
State
Alabama
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
Dist. of Col.
Florida
Georgia
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire
New Jersey
New Mexico
New York
North Carolina
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island
South Carolina
South Dakota
Tennessee
Texas
Utah
Vermont
Virginia
Washington
West Virginia
Wisconsin
Wyoming
UNITED ..STATES

Incorporated banks
(State and national)(2)
1920
1900
1931
38,104 6,702 9,39S
6,421
3,920 11,973
28,522
3,616
5,301
4,812 14,263
5,520
s,o6o 2,379 4,172
8,6*48 9,957 io,4io
4,o6s
8,01+3 4,972
9,244 12,590
13,950
7,805
3,762
13,564
8,456
12,224
3,943
1,968
3,405
9,529
12,428
4,35s 5,275
11,122
3,343 4,575
3,6lS
2,237
1,412
3,018
1,9%
1.31S
4,149
5,107
7,133
6,764 10,316
17,712
8,829
7,020
6,517
11,762
5,498
2,024
9,947 14,423 17,252
8,304
5,657
7,33S
2,762
1,596
6,231
13,726
7.5SS
5,059
2,06s
5,413
3,315
3,261
1,317
0,750 1,089 1,904
2,078
8,400
2,333 i 2,782
6,43s 5,550 6,763
11,487
8,S2S
7,979
13,929 2,943 8,392
12,237 12,799 l4,iil
20,354 4,136 9,929
2,085
719 2,262
9,450 5,821 7,708
6,870
2,135 4,407
9,000
2,359 4,4qs
6,84i
9,726
6,lb9
7,509 12,515 26,692
24,814 3,670 12,450
924 2,192
2,972
18,207
6,092
4,297
14,5S8
3,p37 5,028
6,925 3,406 5,333
7,167 4,000 4,28b
13,733 4.75S 5,651
3,478
9,088
5,l43
7,611
4,341
6,67s
2,729
9,535
3,255
1,231
2.780
4.227
8.697
3.713
8,697 3,713 ! 5.874
5,874

All banks(2)
1900
20,784
4,519
20,500
5*103
4„426
7,630
6,852
11,160
9,981
10,027
6,480
4,722
5,554
1,939
2,588

6,223
15,022
6,318
7,288
4,787
4,568
3,243
12,213
4,556
4,263
1,213
6,000
6,242
11,082

8,47s
4,327
15,206

2,006
5,807

6,270

4,938
6,544
6,388
16,750
2,105
15,546
7,642
5,226
7,020
10,655
5,820
7,051
5,980
2,818
5,457

1920 | . 1931
9,332
11,9-0
5,733
14,263
2,350 4,172
9,609
8,552
4,978
4,06s
9,844 12,590
3,734 7,803
3,736
7,615
1,968
3,405
3,465
5,275
4,052
2,791
1,24?
2,097
1.937
i,3W
4,i49 5,107
6,764 10,316
6,517 8,889
4,973 7,247
14,423 17,25s
4,270
6,531
2,762
1,596
7,583
5,059
2,o64 3,312
3,24l
1,292
1,904
1,029
2,788
2,333
6,768
5,550
8,499
7,837
8,231
i 2,919
10.S70 13,805
4,123 9,929
719 2,2b2
5,087
4^407
2,135
2,848
4,498
5,712
6,717
18,515 26,692
3,662 12,362
916 2,17s
6,092
4,297
2,727
4,757
3,406
5,333
4,000
4,286
5,612
4,691
3,478
6,553
3,920
3,587
4,812

4,341
2,729

1.216
3.501
3,501

5»^3

6,676
3,255

2.780
5.737
5,737

(1) For population figures, mid-year estimates from the Statistical
Abstract of the United States were used in order to he comparable
with the active hank figures except in 1900 where, estimates not
being available, census figures were used.
(2) Exclusive of mutual savings banks.




Table IV - Distribution of Incorporated Banks in 1920 by Size of Capital Stock
State Banks
Number of banks grouped by size of capital stock
States bygeographic
divisions

$15

$15
to
25

$25

$25
to
50

Under
&15

(in thousands of dollars)
$50
$100 $200
to
$50
to
$100
to
500
100
200

$500
to
1,000

$1,000
to
5,000

$5,000
and
over

Total

Hew England
Maine
Hew Hampshire
Vermont
Massachusetts
Rhode Island
Connecticut

1
0
0
0
0
1
0

0
0
0
0
0
0
0

0
0
0
0
0
0
0

34
10
3
8
0
1
12

7
2
3
1
0
0
1

70
21
8
23
7
1
10

16
4
3
2
1
2
4

67
10
2
4
26
3
22

18
3
4
0
6
1
4

75
4
2
1
49
3
16

14
I
0
0
10
1
2

17
0
0
0
12
3
2

1
0
0
0
1
0
0

320
55
25
39
112
16
73

Middle Atlantic
New York
New Jersey
Delaware
Pennsylvania
Maryland
Dist. of Gol .

26
0
0
0
2
24
0

6
0

146
64
1
3
37
40
1

43
22
0
1
13
7
0

173
43
11
5
94
13
7

39
7
2
0
23
4
3

194
62
79
1
33
14
5

222
13
8
2
191
4
4

210
50
37
0
111
9
3

56
20
9
4
20
3
0

85
35
7
1
28
8
6

11
10
0
0
1
0
0

1,233

0
0
6
0

22
0
0
3
6
12
1

North Central
Michigan
Wisconsin
Illinois
Indiana
Ohio

267
0
230
10
0
27

141
1
97
28
0
15

257
162
78
5
3
9

1,093

425
69
98
110
88
60

584
64
110
192
99
119

139
16
22
39
35
27

349
51
36
137
64
61

81
16
6
23
13
23

199
23
13
96
21
46

41
9
1
16
6
Q

39
12
3
10
2
12

6
1
0
5
0
0

3,621

117
123
346
294
213

Southern Mountain
West Virginia
Virginia
Kentucky
Tennessee

246
1
64
1
160

249
0
31
172
46

133
1
46
52
34

240
71
40
57
72

184
35
50
58
41

150
38
20
54
38

60 1
13

85
26

19
20
18

48
16
10
8
12

19
2
8
4
5

9
0
6
1
2

0
0
0
0
0

1,450

14
17
16

27
9
7
7
4

Southeastern
North Carolina
South Carolina
Georgia
Florida
Alabama
Mississippi

331
188
50
0
0
34
59

374
27
25
184
71
35
32

178
57
42
29
14
14
22

452
65
64
176
40
54
53

208
36
35
51
21
27
38

284
39
62
81
29
32
41

134
24
36
31
4
15
24

180
37
41
45
19
18
20

32
4
6
6
2
7
7

58
9
10
18
4
8
9

9
2
0
3
1
2
1

8
3
0
5
0
0
0

0
0
0
0
0
0
0

2.248




o

326
154
20
559
144
30
541
817
1,017

625
621

216
335
451
448

491
371
629
205
246
306

Table IV - D i s t r i b u t i o n of I n c o r p o r a t e d Banks on June 3 0 , 1'920 "by Size of C a p i t a l Stock (Continued)

S t a t e s by
geograpliic
divisions

Under
$15
$15
543
25
163
127
228

Rocky Mountain
Lion t a n a
Idaho
Wyoming
Colorado
New Mexico
Arizo na
Utah
Nevada
P a c i f i c Coast
Washington
Oregon
California
UNITED STATES

984
153
148
125
130
lb2
126
1U0

16 3
0

Western Grain
Minnesota
North Dakota
South Dakota
Iowa
Nebraska
Missouri
Kansas

274

2,380
443
343
15S
189
189
6ll
441

Southwestern
Louisiana
Texas
Arkansas
Oklahoma

65

,23

39
91

35

109

0
14

47
88
0

3
i

6
36
6
3

$15
to
25

$25

S t a t e Banks
Number of banks grouped by s i z e of c a p i t a l s t o c k
( i n thousands of d o l l a r s )
1
$500 $1,000
! $100
$200
$50
$25
$100
to
to
to
to
to
$50
to
5,000
50
200
500
1,000
100
210
29
132
24
45

264
34
132

849 1.3^8
107 r 231
90
75
123
55
122
33?
178
224
196
15?
116
174

615
84
21
40
176
118
108
68

700

158
112

259
47
19
40
34
17
24

144
31
17
12
27
12
12
25

29

9

124
27
16
8
22
22
12
16
1

s

1

4

137

35

61
11

fo

^

2,545

69

73

0

S
17
0
1
10
1

78
42

19
10

36

9

0

ft
&

59
18
16
25

4,140 2,219 | 1,881

4,250

1,939

1
1

83
53
25
0

0

0

96

363
28
183
64
SS

244
14
132
29

K

>

215 |
86 |

56
42

I

243
96
122
90

P

118
20

28

5

42
24
11

65

17

23
10

5
1

146
18
1

244
25
8

38
2
0
1
15
2
13

r
0
48

16

\l
6
3
0

4
1
2

6

727

r

68

1?
3+
>
84

5

64
17
8
4
10

15

3

11

1
1

7

3

3

2
1

3

52
8
26
10
8

10
4
4
2
0

92
15
1
1

15
4
0
1
2
0

z

l

0

0
0
0
0
0
0
0
0

7,413
1,177
717
552
1,354
1,008
1,511
1,094

0
0
0
0
0
0
0
0
0

1,054
278
141
111
255

1

2
0
0
0
1
0
0
1
0

24

26

3

3

905
303
185

5i7

20,86l(1)

22
8
2
0
4
2
1

9
1
0
0

91
22
16

41
2
2

70
13

53
1,404

2,231
229
992

5
3

0

Total

0
0
0
0
0

37
Q

l

$5,000
and
over

3

0
1

3

9
4

5

0
0
12

3

0
0
2
0

7

37

7

50

2
19

1
22

1
0
0
1

504

829

197

207

19

399

611

J5
°7
104
23

i
i
(!) The 1920 figures as given in this table and in Tables VI, VIII, X, XII, and XIV include 386 banks in Illinois which
were classed as private banks on June 30 of that year, most of which had been converted to State banks by the end
of the year on account, of a law prohibiting the operation of private banks after January 1, 1921.
In classifying active State banks by size groups, whenever individual reports for June 30 were not obtainable,
figures for the nearest available date were used. For this reason the totals in appendix Tables IV-XV, showing the




Table IV - Distribution of Incorporated Banks in 1920 by Size of capital Stock (Continued)

States by
geographic
divisions

Under
$25
$25

National Banks
Number of banks grouped by size of cap Ltal stock
(in thousands of doll Drs)
$50
#200
#500 $1,000 $5,000
$100
$25
to
and
$100
to
to
to
to
to
$50
5,000
over
200
500 1,000
100
50
19
4
6
5
3
0
1

112
13
18
16
46
6
13

50
3
9
8
22
2
6

88
8
5
5
44
3
23

25
2
0
0
11
5
7

15
0
0
0
7
1
7

2
0
0
0
2
0
0

409
63
55
49
159
17
66

432
116
48
4
241
23
0

79
11
7
5
48
8
0

305
95
53
2
140
15
0

108
30
12
2
61
3
0

192
55
23
2
99
6
7

50
13
5
0
22
5
5

54
23
4
0
19
5
3

13
10
0
0
3
0
0

1,680
491
212
19
851
92
15

74
5
5
33
17
14

311
28
30
135
46
72

106
5
14
45
14
28

291
33
31
79
61
87

64
5
4
24
12
19

139
17
24
29
25
44

37
3
6
10
6
12

25
3
1
4
4
14

7
1
1
4
0
1

1,367
112
151
480
254
370

118
31
32
33
22

41
16
14
5
6

108
27
37
25
19

49
10
16
10
13

91
22
25
30
14

30
4
8
14
4

43
6
16
10
11

24
5
9
5
5

14
1
7
2
4

0
0
0
0
0

519
122
165
134
98

49
8
10
5
7
18
1

25
1
3
9
4
8
0

100
18
20
23
15
19
5

36
8
5
11
3
7
2

112
30
18
15
12
24
13

35
3
7
11
3
9
2

65
15
12
14
5
12
7

15
3
5
2
4
1
0

8
1
2
3
0
2
0

0
0
0
0
0
0
0

446
87
82
93
53
101
30

New England
Maine
New Hampshire
Vermont*
Massachusetts
Rhode Island
Connecticut

0
0
0
0
0
0
0

18
6
3
3
0
2

2
0
1
1
0
0
0

Middle Atlantic
New York
ITew Jersey
Delaware
Pennsylvania
Maryland
Dist. of Col.

1
1
0
0
0
0
0

39?
123
50
3
197
24
0

49
14
10
1
21
3
0

North Central
Michigan
Wisconsin
Illinois
Indiana
Ohio

4
0
0
1
1
2

308
12
35
116
68
77

Southern Mountain
West Virginia
Virginia
Kentucky
Tennessee

1
0
1
0
0

Southeastern
North Carolina
South Carolina
Georgia
Florida
Alabama
Mississippi

1
0
0
0
0
1
0




Total

4

78.
29
10
11
21
0
7

Table IV - Distribution of Incorporated Banks in 1920 by Size of Capital Stock (Continued)

States bygeographic
divisions

Under
$25
$25

National Banks
Number of banks grouped by size of capi bal stock
in thousands of doll ars)
$500 $1,000 $5,000
$200
$100
$25
$50
Total
and
to
to
to
to
$100
to
$50
to
over
5,000
200
1,000
500
50
100

Southwestern
Louisiana
Texas
Arkansas
Oklahoma

0
0
0
0
0

326
7
109
23
187

79
1
54
4
20

247
11
137
25
74

68
0
52
8
8

154
4
110
11
29

27
4
18
2
3

81
6
48
8
19

29
3
18
2
6

14
2
10
0
2

0
0
0
0
0

1,025
38
556
83
348

Western Grain
Minnesota
North Dakota
South Dakota
Iowa
Nebraska
Missouri
Kansas

3
1
0
1
0
0
0
1

613
172
126
61
90
45
31
88

125
33
6
14
29
20
7
16

444
61
32
39
129
75
30
78

91
17
4
5
28
11
10
16

175
23
10
13
47
19
29
34

18
0
0
2
7
4
1
4

67
11
3
1
24
6
12
10

15
6
0
0
2
4
3
0

25
6
0
0
2
4
11
2

3
1
0
0
0
0
2
0

1,579
331
181
136
358
188
136
249

Rocky Mountain
Montana
Idaho
looming
Colorado
New Mexico
Arizona
Utah
Nevada

2
0
0
0
0
1
0
1
0

185
78
24
11
48
14
2
6
2

49
13
9
6
15
4
0
2
0

109
18
21
12
32
12
7
6
1

29
9
6
4
6
2
0
0
2

84
9
16
11
24
9
8
4
3

15
4
1
1
4
1
1
3
0

39
14
4
2
8
4
2
4
1

4
0
0
0
2
0
0
1
1

3
0
0
0
2
0
0
1
0

0
0
0
0
0
0
0
0
0

519
145
81
47
141
47
20
28
10

Pacific Coast
Washington
Oregon
California

4
1
2
1

119
24
20
75

12
2
6
4

130
22
30
78

18
3
4
11

101
18
16
57

18
0
2
16

44
8
7
29

10
3
0
7

21
6
3
12

3
0
0
3

480
87
90
303

UKITED STATES

16

2,133

456

1,959

495

1,425

365

758

209

180

28

8,024




t

Table V - Distribution of Incorporated Banks in 1930 by Size of Capital Stock

States fcy
geographic
divisions

$15

Under

$15
$15

to
25

New England
Maine
Hew Hampshire
Vermont
Massachusetts
Ehode Island
Connecticut

1
0
0
0
0
1
0

0
0
0
0
0
0
0

0
0
0
0
0
0
0

Middle Atlantic
New York
New JerseyDelaware
Pennsylvania
Maryland
Dist. of Col.

20
0
0
0
1
19
0

5
0
0
0
0

12
0
0
2
0
10
0

North Central
Michigan
Wisconsin
Illinois
Indiana
Ohio

157
0
124

150
0
SI

33

69

0
0

0
0

Southern Mountain
West Virginia
Virginia
Kentucky
Tennessee

l49

Southeastern
North Carolina
South Carolina
Georgia
Florida
Alabama
Mississippi



5

0

State Banks
Number of banks grouped by size of capital stock
(in thousands of dollars)
$500
$50
$100 $200
$25
to
$50
to
to
to
$100
to
$25
50
100
500 1,000
200

26

6
1

7

0
2
10
118

2
0
1
0
0
0
1

59

12

67

33

16
8
18

5

8
2
8
20
2
27

0
10

3

1
13

3

47
14
0

176
52

,3

6

47

3
19

3*

11
0

l
0

95
13
3

465

193
0
20

111
0

229

143

161

17

5(5

29
53

102

46

u

S

36

74

39

ai*

2.10

109
46
11

277

149
34
11
25

0
47

0

29
21
0
0
,17

4s

38
9
77
3?
24
30 1

9
7

n
25

37
29
90
29

59
33

131
132
80

55

6
^2

41

36
12
2
2
17
2
1

617 181
so 28
112 3S
218 55
S3 30
119 30

245 1,098
159
119
rr
125
DO
18
336
2
275
0
243

67

2
2
1
0
2

7

18
1
0
0

27
2
0
0

3

15

9

22

9
1
7

224 237
84 18
90

299

105

119
38
21

5

6

3

„5
4i

4

172 100
53 20
8
51
125 27
73 12

4

232
.32
632

0

6

1
0

^

291
42

76

57
16

12

1,821

3

600

3

0

145

3
39

773

19

4

1,220

3

0

lb

5

603
627

11
2

0
0

1,255

J
2

0
0

278
419

0

379

0
0
0
0
0
0
0

l.v^,
262

153

9
2

45
7

13

91

29

50

21

35

30

18
19

20
24

17

19

2

17
13
13

r

35
55

10
9

6l

128
22
17
30
27
15
17

30

19
47
24
34
3S

5

12

13
I?
lb

6
3

10

4
3
4

99

5

63
9

2

100
16

272

8
13

37

25

39

1,428

11

•m

126
47

in

33

8

2
8

2
0
0
0
1
1
0
21
2
0

"I 81 i1

24 188
10
4
11

?
4

70

36

$1,000 $5,000
Total
to
and
5,000
over

b

7
5

11
+
g

7

5

33
6
4

10
0

:q

3
3

1
2
0
1
0

10
8

5
5

2

1

5

179

133
315
152
215
258

Table V - Distribution of Incorpoz.~-.t3d 'Oanks in 1930 by Size of Capital Stock (Continued)

S t a t e s by
geographic
divisions

Under

$15
to
25

$*5
$15

Southwestern
Louisiana
Texas
Arkansas
Oklahoma
Western Grain
Minnesota
Worth Dakota
South Dakota
Iowa
Nebraska
Missouri
Kansas

269
11
60

9!-

io*+

175

21
1+6
27
81

ll+5
22
89
2-3
11

199
k2

11*+
28
29

320
27
168
57
68

60S
9

1,00k
1U2

^99
S3
10

98
16
0
2

11+5

466
57
5
J9
168

81
9>
63

55
95
67

S
32
9

37
35

60
13
8

ll+
2
1
0

3k

11

90
15
13
6
20

5
3

7
6

178

7

1,177
229

600

1}

98

^

]l

$

&
9S
100
361
28k

9+
>

101+

9*
99

16U
101

67
37
9

65
0
11
16

1+2
0
10

37

2k
0
1
1
0

P a c i f i c Coast
Washington
Oregon
California

1+8

UNITED STATES

0
1
0
0

7

70

Rocky Mountain
Montana
Idaho
Wyoming
Colorado
Hew Mexico
Arizona
Utah
Nevada




State Banks
Number of banks grouped by s i z e of c a p i t a l s t o c k
( i n thousands of d o l l a r s )
$50
$100 $200
$500
$25
$25
to
$100
to
to
to
to
$50
50
200
100
500 1,000

6

1
11
0
1

%
86
30^
175
$
168
16

1

13
2
23
8

11

138

12
0

51
30
21
0

0

38
31

2,001

1.1+26

1,31+1

3,378

36

7

69
6

£3

7

19

11 35
16

13
0

16
7

39
ik
10
15
1.5U9

77
21
2

3J

90
17
1+6
19
8

2k

0

3

176
16
1

29
2
1
0
12
1

69
7

5
5

^

1

11

6

67

I
8
2

0

50
11
6
6
6
0

3
3

10

.3

28

3

1
l
0
1
0
0

6.

32
10
11
8

8

9

3
3

k
k

2
0

3
0
0
0
0
0
1
2
0

0
0
0
0
0
0
0
0
0

591
121

0
0
1
1
1
+
8
2

5
1
0
0
2
0
1
1
0

5^

15

11+

3

0
11

5
0
0

5

588
22l+
135
229

260

52

15,619

19

3

3f

27

5
37

52U

933

267

2,071+

57U

l,2l+0

322

1

1

k
k
1

1
+
21

1+.71+6
71+7
25I+

III
328

k

7

24
51

1,527

k

0
1
13
2
38
8

3?

•

1
1
0
0
0
2
0
0
0
0
0
2
0

107

k
3

Total

11

5
*

1
0

$5,000
and
over

7
1
0
0
1
0

2

1+0
•8
8
2k

$1,000
to
5,000

12

3

0
0

3

0

m

602
1,093

799

96
59

150
26

3?
si+
25

Table V - Distribution of Inooxpo.«.auivj Banks in 1930 " y Size of Capital Stock (Continued)
b

States by
geographic
divisions

$25

National Banks
Number of banks grouped by size of capital sstock
n
(3. thousands of dollars)
$500
$200
$1,000 $5,000
$100
$50
$100
to
to
to
to
to
and
$50
100
200
500
1,000
5.000
over

$25
to
50

New England
Maine
New Hampshire
Vermont
Massachusetts
Ehode Island
Connecticut

15
1

Middle Atlantic
New York
New Jersey
Delaware
Pennsylvania
Maryland
Dist. of Col.

299

168
15
0

18

North Central
Michigan
Wisconsin
Illinois
Indiana
Ohio

2l4
13

68

Southern Mountain
West Virginia
Virginia
Kentucky
Tennessee
Southeastern
North Carolina
South Carolina
Georgia
Jlorida
Alabama
Mississippi



3
3
5
"0

3

S
1

$
%

1
0
1
0
0
0
0
^

I
0
3

0

7
5
2

7

65
16
11
10
13
0
10

21

0
1

7

18
l

10

371
109
52

83
20

352
142
100

3
191
16
0
2?4
26
32
117
s

5
7
5
3

7
,3
^5
8
0
91
5
,12

kl

10
25

^9

2
61

85
22
24
k

14
15
35
13
11
5

113
24

0

22

S

16
2
1

68
10

23
2
2

"22
*

10

2

8
1
13
1

3^
33

9
11

46
8
11

1

i4

7

20

9
3
5

0

4

2

7
5
35

27
2
0
1
11

5

2
19

10

4

219

106
11
20
14
48

298
94

84

51
20
8
0
16
2

^

5
7
7

37

ss

18
0
156

3

81
12

7

?
4

122

3

%

0

3^
4
3

15
0
0
0
10
1

0

6

0

4
4

244

86
12
11
20

168
12
23

56
10

59

18

8

^3

U

25

9

49

10

5
9

106
22

10

46

5

10

17
5

36

11
11

15

6
4

22
2
9

19

36

p

62

3

11
10

33
5

31
17

9

5
10

3
5

3

19
21
12
1

67
13

16

3

d

8

b

10
1
8
6

96
21

2

12
8
20
8

2
1
2
2
2

14
l
l
1

7

6
5
0

Total

1
0
0
0

177

3

0
0

152
10
62

12

1,801

7

556

0
0

%

5
0
0
8
2
1

5?
$

845
77

12

l,26l

3

126
155
462
210
308

0
0
0
0
0

500
111
157
133

2
0
0
2
0
0
0

165

0
2

99
64
35
75
55
101

35

Table V - Distribution of Incorporated, .banks in 1930 by Size of Capital Stock (Continued)

States bygeographic
divisions

Southwestern
Louisiana
Texas
Arkansas
Oklahoma
Western Grain
Minnesota
North Dakota
South Dakota
Iowa
Nebraska
Missouri
Kansas
Rocky Mountain
Montana
Idaho
Iflfyoming
Colorado
New Mexico
Arizona
Utah
Nevada
Pacific Coast
Yfashington
Oregon
California
UNITED STATES

$25
312

5

x

ll

$25
to
50

72
0
51

ITational Banks
Number of banks grouped by size of capital stock
(in thousands of dollars)
$500
$200
$100
$1,000
$50
$100
to
to
to
to
to
$50
100
1,000
200
5,000
500

216
8
155
16

150

3
is

456

110

327

110
71
50

29

5 2

57
^9
23

3
8
2k

17
8
16

57
,

Ik
19
82
62
28

9b
io4

2k

70
79

25
Ik

6
3

10
Ik

5
^3
9
2
k
2

u
25
UICD
l,62i(1)

2
11
1
0
0
1
11

3
6
2

371

60
0

Ikk

29
2

Ik
k

ks
5
6

110

17
5
5

^9
7

Gk
12

20
l
2
2

83

3

15U
3*
9

15

35

4
3

17
8
20
Ik

2

11

7
K

s
22

10

12

16
25
25

15

^

9

22

3
5
14

51
10
12
29

15
b
0

^93

896

6
20
2

1,637

is
6
2
10

^23

7
3

75

l

3

104
25
29
50

5

2

2

6
28
10
k
1

15
5
4

5
3

22
18

35
1,320

16
0

3
3
0
0
2

3
3
2

10
0
0
0

3
0
0
0

3

3
8
2
2
0
2

3

0
1

5
l

0
0
0
0

2
0
1
0
1

Total

969
31
593
67
278

k
3

1.252

0
0
0
0
1
0

112
95
241
171
125
2^5

0
0
0
0
0
0
0
0
0

317

263

?3
ki
25
120
26
Ik
18
10

1
0

9

1U
k
2
8

6

205

263

185

3S

7.2U7

* ' Includes one tank in California with less than $25,000 of capital stock.



13

28
11
0

1

6

7

21
k
0
0

Ik

23
k

11
i
t
2
2
1
2
0
0
0

4

3
7
0
0
0
1

l

17
1
12
2
2

$5,000
and
over

7

403
105

93

Table VI - Distribution of the Aggregate Capital Stock of Incorporated Banks on June 30, 1920 " y Size of Capital Stock
b

S t a t e s by
geographic
divisions
New England
Maine
Hew Hampshire
Vermont
Mas sachuse 11 s
Bhode I s l a n d
Connecticut
Middle A t l a n t i c
New York
ITew J e r s e y
Delaware
Pennsylvania
Maryland
D i s t . of C o l .
Horth Central
Michigan
Wisconsin
Illinois
Indiana
Ohio

, ...,
Under
$15
$15
51
0
0
0
0
5
0
260
0
0
i4
2,6
1,660
0
2,33^
1,005
0
321

0
0
0
0
0
0
0

$15
to
25
0
0
0
0
0
0
0

424
90
01
0
0 j
0
0!
56
0 ! 117
90 ' 232
cj
19
2,835 i5,5l4
, 1 5 13.231
i , 4 p 5 ! i , 532
1,140) 515
Oi
52
225 i 1S4

State Batiks
Capi t a l s t o c k Dy s i z e groups ( i n thousands of dol3.ars)
$200
$50 |
$100
$25
$500 $1,000
to
$50
t o i $100
to
to
$25 ' t o
50
100 1
500 1,000 i$5.000
200
t

850 j
250 j
75'
200 j

0
25 i
0
300!
30
1
^,b50 I 1,421
1,600:
713
25!
0
751
29
925!
432
1,000;
247
25|
0
17,069
30,075!
2 , 9 2 5 ! 2,299
3,p75I 4 , 4 3 5
il,Uoo! 5,217
7,350! 3,0/7
5,325j
2,041
6,000;
1,250
1,775 s 6,320
1,0001 1,7/6
1,425i 1,9,45
1,8001 1,349

Southern Mountain
\?est V i r g i n i a
Virginia
Kentucky
Tennessee

2 Ml 3,735*2,629
10.
Oi
22
872
1+65 j 282
2,580.11,032
1,56s
690 j 693

Southeastern
Uorth Carolina
South C a r o l i n a
Georgia
Florida
Alabama
Mississippi

3,196 5,610 3,553 11,3001+05 1,165 1,625!
469,
3J5 860 | I , b 0 0 j
o| 2,760 5 5 1 j 4 , 4 0 0 !
0! 1,065
258 | 1,0001
525
276 1,350
618! 480
437! 1,325!




238
70
98

7,098
1,313
1,232
l,715l
683
915
1,240

3,500 1,156 1 6,700 2,670 19,077 7,750
1,050
309 ! 1,000i
475 1,250
500
400
232 i
200 1 600
400 !
0
126 j
400 |
0
200 j
0
1,150
60 ! 2,600 !
875 11,640 ! 5,500
350
50
150;
300;
120
9 0 0 1 500
500
279 I 2 , 2 0 0 ;
6001 4,687 | 1,250
8,650
2,150! 2,772 j 6,200!J29.917153,399 I11.109
450 Il9,400 i,s65j 12,300 (31,217
55o! 146 j 7,900 | 1,175; 8,938 i 4,700
250;
0j
100i
260!
0 ; 2,374
4,70011,648 1 3,300!25,363*29,487 111,034
650!l 28511,400 1 59b! 1,973)2,000
350
2 4 3 ! 500 j
658!
700!
0
!
1
1
!
i
31,150:9,944 |36,100 |U,3401 US,854 '22,738
3 , 2 0 0 - l l , i 3 l | 5,100! 2,1921 6,300; 5,100
5.50011,49213,6001
805! 3 , 2 7 5 !
800
11,500 ! 3,13U!14,900J 3,415122,700 ! 8,200
4,95012,389 j 6,4ool 1,656; 4,850 1 3,650
5,950;l,79Si 6,100; 3,272111,729 i 4,988
!

;

l

{

7 , 5 0 0 . 4 , 1 8 9 8,500 3,940-12,218 jlO.645
1,900
9 2 2 ! 2,800 1,339; 4,725 1,250
1,000
997 2,473 4,239
973i 1.900
2,700 1,141 1 2,000 l,050| 2,200 2,306
554( 2,820 2,850
1,900 l , 1 5 3 j I18OO
1
\
14,200
4,589113,407 5,097
2,043 1,297
1,950 9-297 |118,000
1.703 3.700
2,339
3,100 2 , 5 0 2 ! 4,100
, 0
4,050! 2 , 0 8 1 i 4,500
856; 4,425 1,700
800
1,450! 270! 1,900
500
300|
1,600 1,009 I 1,800
1,800 1,000
975!
2,050 1,732; 2,000 1,025; 1,950
600

ii

i

$5,000
and
over

26.950
7,000
0
0
0i
0
0!
0
; 17,7001 7,000
7,000!
0
i 2,250j
0
i
|138 s 255il07,700
!
60,498 102,500
0
9,000
0
1,000
5,200
48,057
0
9,300
0
10,400
31,000
5,000
17,500
61,650
3,000
0
17,500 26,000
0
2,500
21,150
0
i
!

11,300
0
6,000
2,000
3,300
9,469
3,^9
0
6,000
0
0
0

0
0
0
0
0

Total
75,896
4,9o4
2,005
2,116
^5,725
9,050
12,096
397,155
199:385
' &
130,277
18,019
12,895
3H,929(1)
53,993
31.303,,.
12b,676w
36,874
63.083
79,433
15,993
22,577
20,38b
20,477

0 io4.8i6
0 21,017
0 17,474
0 33.038
0
8,226
0
0 n,6o4
13,^57

Table-VI - 2Jis4ributiott of the Aggregate Capital Stock: of Incorporated Banks in. 1920 by Size of Capital Stock (Continued)
State Banks
S t a t e s by
geographic
divisions

Under

Southwestern
Louisiana
Texas
Arkansas
Oklahoma

5,515
272
1,753
1,231
2,274

$15
to
25

$15
$15
4,110
5S5
1.365
525
1.635

4,815
267
2,608

9.075
700

566

1,600
2,200

1,374

Western Grain
24,002 i 4 , 7 6 o 16,872
Minnesota
4,510 2 , 2 9 5 2 , 1 5 1
North Dakota 3.513 2,220 1,487
South Dakota 1,^36 1,875 1,106
Iowa
1,950 1,950 2,420
Nebraska
1,886 2,430 3,524
Missouri
6,21b 1,290 3.895
Kansas
4 , 4 9 1 2,100 2,289
Rocky Mountain
Montana
Idaho
Wyoming
Colorado
New Mexico
Arizona
Utah
Nevada

l 5 6U5
0
232
470
891
0
30
10
12

975
0
210
90

P a c i f i c Coast
Washington
Oregon
California

S19
581
258
0

UNIT1D STATES
-

40,687




, C a p i t a l s i c>ck b ? s i z e ar-ottoa ( i n thousands of d o l l a r s }
$100
$200
$500
$25 |
150
to
to
$50
$100
to
to
$25
to
50
500
200
1,000
100

4,575

7,749
991
4,490
790
1,478

33,950 2 0 . 4 9 1
5,250 2,756
2,250
690
3,075 1.330
8,350 5,989
6,100 3.900
3,975 3,552
4,350 2,274

3,148
2,240
ISO

6,475

157
336

475

1,825
1,175

4,176
920

575

285
685
700
4i7
559
35

6.454

11,200
1,700
6,600
2,800
2,100

1,243
2,780
1,691
740

15,000 10,088
4,450 1,200
1,200
75
1,800
370
12,150 3.375
4 , 8 0 0 1.137
6,100 3.026
4,500
905

3.4oo
6.400
1,700
800

743
2,395
754

0
0
0
0
0

99.705
21,626
47,321

150

14.500
8,500
6,000
0
0

5,224
250
0
150
2,135
255
1,73^
700

21.487
3.500
200
300
6,060
900
8,267
2,260

8,110
2,210
0
500
1,200
0
2,900
1,500

17.500
3,000
0
0
2,000
0
12,500
0

0
0
0
0
0
0
0
0

212,084
34,672
12,435
12,542

2.125
425
310
150
370
150
150
450
120

5.490

2,000
0
0
0
1,000
0
0
1,000
0

0
0
0
0
0
0
0
0
0

46.261
11,380
5,285
3,022

450
250
1,295
0

4,600
500
0
0
1,500
0
500
1,600
500

18.580
3.300
1,700
13.580

14.026
1,600
1,000
11,426.

17.401
3,000
1,000
33,403

7.000
0
0
7,000

112.961
17,071
9,85$
86,034

285
60
155
448

1,000
300
1,100
700

4oo

66

4oo

4,297
760
254
3,283

9.100
2,200
1,600
5,300

5,335

49,737

139,200

$9»527

0

1,170
630
54o
0

176
200
176
0

5.175
2,150
875
2,350

2.015

627
551
857

32,565 36,913

104,000

65.067

445
173
395

6,850
1,750
1,600
3.500
125,300

45

2,500
800
600
6,800
1,900
8,400

1

!

4oo

Total

5.900
2,550
2,100
1,250
0

2,027

0
20
195
20

0
90

24,4oo

$5,000
and
over

12.525
2,075
6,150
2,450
1,850

4.042

7.200
1,550
850
600
1,350
600
600
1.250

1,000
850
425
600
125

54o

11,800
2,000
6,500
2,300
1,000

$1,000
to
5.000

5,910
275
300

1,775
780
0

94o

15,957
14,301

54,379

26,832
62,455
28,769

9.S97
3.110

3.737
8,152
1,678

204,437 110,283 319,027 152,700 I t 4 4 9 , 4 4 3

Table VI - Distribution of the Aggregate Capital Stock of Incorporated Banks In 1920 by Size of Capital Stock (Continued)

1
States by
geographic
divisions

-$15

Under

$15

to

$35

25

New England
Maine
New Hampshire
Vermont
Mas sachus e 11 s
Rhode Island
Connecticut

0
0
0
0
0
0
0

0
0
0
0
0
0
0

Middle Atlantic
New York
New Jersey
Delaware
Pennsylvania
Maryland
Dist. of Col.

0
0
0
0
0
0
0

0
0
0
0
0
0
0

North Central
Michigan
Wisconsin
Illinois
Indiana
Ohio

0
0
0
0
0
0

15 63
0
0
0
0
15 . 0
0
0 i4

Southern Mountain
West Virginia
Virginia
Kentucky
Tennessee

Q
0
0
0
0

1"?

Southeastern
North Carolina
South Carolina
Georgia
Florida
Alabama
Mississippi

0
0
0
0
0
0
0

0
0
0
0
0
0




0
0
0
0
0
0
0

Nat: t-onal Banks
bv o - .
L
.
Ca-pXucl s t OQv "; • j z 8 groups (ir
$50
$25
$50
to , $100
to
$25
100
50

450
100
150
75
75
0
50

thous ands of dollars)
$200
$100
$500 $1,000
to
to
to
to
500
5,000
200
1,000

$5,000
and
over

Total

75 3,900 1,353 11,200 7,205 21,957 14,314 20,350 25,000
0
425 2,300 1,200
0
0 1.450
270 1,300
1,000
1,800 1,325
500
0
0
0
h^o
550
0
0
0
375 1,600 1,160 1,200
0 1,050
203 4,600 3,125 10,915 6,350 11,000 25,000
1 4 000
0
0
0
0
oOO
270
850 2,850
350
900 5,692 3,914
0
8,350
75 1,300
0

105,804

24 .9,9-5 1,702 21,600 5,480! 30,500 15,015 48,192 27,402 79,800 133,000
24 3,075
7U5 9,500 4,190 13,340 7,502 33,500 116,000
495 5,800
6,350
0 1,250
352 2,400
507 5,300 1,740 5,520 2,500
0
0 , 75
30
200
365
200
232
0
0
0
715 12,050 3,3H 14,000 8,^53 25,440 11,450 29,4oo 17,000
0 4,925
0
600
110 1,150
552 1,500
400 1,802 3,000
0
7,500
0
0
0
0
0
0
0 1,677 2,950
0
3,050

372,640

0
0
0
0
0

0
15
0
0

oj
1

23
0
0
0
0
23
0

7,700

300
875
2,900

1,700
1,925
2,950

775

S

2,510 15,550
170; i,4oo
105 1,500
1,137 6,750
560 2,300
47s 3,600

7,329
330
1,103
3?088

29,100
3,300
3,100

9,006

7,900

953

6,100
8,700

3,371
1,615
2,680

5,400
1,350
1,850
1,250

3,418

1,435
566

soo

%4

825
550

180
195

1 = 225

200
250
125
175
450
25

950

S47 5,000
30
900
100 1,000
312 1,150
i4o
750
265
950
0
250

1,855

701
1,120
683
914
2,541

535
3b0
811
225
470
140

765
575

9,100
2,200
2,500
3,000
1,400

4,248

11,200
3,000
1,800

4,939

1,500
1,200
2,400
1,300

581
1,135
1,957

575

275

0
0
0
0
0

68.711
11,573
25,134
17,470
14,534

0
0
0
0
0
0
0

59,460
11,890
11,845
13,448
6,545
11,932
3,800

17,100
1,000
8,000

16,885
4,200
2,825
3,550

8.700
1,000
2,000
3,200
2,500

500
0

126,744
l6,6l4
7,677

6,000

13,575
2,700
4,775
3,500
2,600

i,4oo

194,171
25,919

6,000
24,000

11,470
l.jpo
4,445
2,575
2,750

3,100
1,810

5,570
20,631

6,250

41,750
4,500
1,000

405

62,31s

228,813
22,115
23,568
86,061
29,697
67,372

20,250
1,800
3,000
5.650
3,500
6,300

1,274

1,010
1,550

5,235
,5,005

58,500
5,000
6,000
41,500

37,040
4,550
6,250
7,500
6,950
11,790

8,100
1,600
2,500
1,250
2,250

425

7,o45

&',?00

0
0

0

Table VI - Distribution of the Aggregate Capital Stock of Incorporated Banks in 1920 " y Size of Capital Stock (Continued)
b

S t a t e s "bygeographic
divisions

Under
$15

to
25

$15

National Banks
C;aj>Atal sjtocls-by si;J6 pi-traps (in thousands of d o l l a r s )
$100
$200
$500 $1,000
$25
$50
to
$100
to
to
$50
to
$25
to
to
500
200
5,000
1,000
100
25

$5,000
and
over

Total

Southwestern
Louisiana
Texas
Arkansas
Oklahoma

0
0
0
0
0

0
0
0
0
0

0
0
0
0
0

8,150
175
2,725
575
4,675

2 , 6 7 1 12,350
1+8
550
1.830 6,850
138 1,250
655 3.700

4,61+5
0
3.615
520
510

15,1*00
1+00
11,000
1,100
2,900

3,860
600
2,560
250
1+50

19,350
1.350
11,300
2,250
4,450

15,850
1,750
10,100
1,000
3,000

19,300
3,800
13,000
0
2,500

0
0
0
0
0

101,576
8,673
62,980
7,083
22,81+0

Western Grain
Minnesota
North Dakota
South Dakota
Iowa
Nebraska
Missouri
Kansas

0
0
0
0
0
0
0
0

0
0
0

15,325

0
0
0

52
IS
0
17
0
0
0
17

4 , 3 ^ 3 22,200
1,096 3.050
180 1,600
515 1,950
1,035 6,1+50
700 3.750
230 1,500
592 3,900

6,295
1,185
310
350
1.950
725
665
1,110

17,500
2,300
1,000
1,300
4,700
1,900
2,900

2,580
0
0
300
960
600
120
600

16,075
3.075
700
250
5.700
1,1+50
2,550
2,350

8,175
3,300
0
0
1,100
2,275
1,500
0

37,250
12,000
0
0
2,200
4,350
16,700
2,000

25,000
5,000
0
0
0
0
20,000
0

154,800
35.324
6,91+0
6,207
26,31+5
16,875
1+6,91+0
16,169

Rocky Mountain
Montana
Idaho
Wyoming
Colorado
New Mexico
Arizona
Utah
Nevada

0
0
0
0
0

16
0
0
0
0
0
0
lb
0

H,6?5
1,950

1,668
1+35
303
215
520
135
0
60
0

5,1+50
900
1.050
600
1,600
600
350
300
50

2,060

0
0
0

15
0
0
0
0
15
0
0
0

8 , HOC
900
1,600
l.ioq
2,1+00
900
80C
1+00
30c

2,225
575
150
125
600
150
150
475
0

9,1+50
3.050
1.050
1+50
2,200
1,000
1+00
1,100
200

2,200
0
0
0
1,000
0
0
500
700

3,250
0
0
0
2,250
0
0
1,000
0

0
0
0
0
0
0
0
0
0

39,359
8*1+55
5,193
3.065
12,160
3.300
1,750
1+.001
1.435

P a c i f i c Coast
Washington
Oregon
California

1+1
13
28
0

0
0
0
0

22
0
0
22

2,975
600
500
1,875

kv>\ 6,500
75 1 1,100

1,270
210
270
790

10,100
1,80C
1,600
6,70c

2,685
0
275
2,1+10

10,750
1,900
1,750
7.100

5,250
1,600
0
3.650

32,700
6,1+00
5,000
21,300

19,500
0
0
19,500

92,228
13.698
11.133
67,397

UNITED STATES

H




Q

$

1+5 200

3.150
1.525
2,250
1,125
775
2,200

6oo

275
1,200
350
50
150
50

210
150

1,500
3.900

61+5
1+1+0

300
390
150
0
0
135

3.too

53.325 15,691 97,950 3 ^ . 3 9 1 11+2,500 51,763 191.169 115,116 260,200 261,000 1,223,391
i

Table VII - Distribution of the Aggregate Capital Stock of Incorporated Banks in 1930 l y Size of Capital Stock
a
State Banks
r

S t a t e s "by
geographic
divisions

Uapi £ ,

Under

$15
to
25

$15
$15

$25

/.Tew England
Maine
New Hampshire
Vermont
Massachusetts
Rhode I s l a n d
Connecticut

10
0
0
0
0
10
0

0
0
0
0
0
0
0

0
0
0
0
0
0
0

650
150
25
175
0
50
250

jAiddle A t l a n t i c
HFew York
New J e r s e y
Delaware
Pennsylvania
Maryland
D i s t . of C o l .

213
0
0
0
10

75
0
0
0
0

237
0
0

2,950
S25
25
75
1,175
S50

^Torth C e n t r a l
Michigan
Wisconsin
Illinois
Indiana
Oiiio

0

1,603
0
1,267
341
0
0

S o u t h e r n Mountain
West V i r g i n i a
Virginia
Kentucky
Tennessee

1,5110
0
1195
0

Southeastern
North Carolina
South C a r o l i n a
Georgia
Florida
Alabama
Mississippi

1,170
27k
208
0
0
177
511




75

iso45

2,250
0
1,215
1,035
0
0
2,895
0
300
1,995
600
3.1V0
570
135
1,155

4so
450

*0
201
0

I S i/O Q:~.

$25
to
50
70
0
30
0
0
0

4o
1,600
470

ii
382
0

0

15,941
4,900
3,137 2,975 2 , 3 3 3
3,125
1,309 27,450 4,498
355 8,400 4,459
% 6,875 2,778
0 6,075 1.873
2,186
0

64i
322
723
2,150

9l4
221
176
133
213

493

J>y

H I 3C-;.

$50

grxpijis 'an tx
lousands 01 d o l l a r s ;
$3D0
$500
$200
$50
to
to
to
to
$100
200
1,000
100
500

2,950
800
400
900
150
50
650

S91
390
150
126

8,800
2,600
350
, 300
4,750
650
150

2,487
780
150
150
1,187

75

0
150

yO

10,850 12.368
4,000 i»?s7
5,b00 2,t>5o
10,900 3* 805
4,4oo 2,060
5,950 1,900

6,700
800
200
800
2,000
200
2,700

4,724
750
789
1,475
395
1,315

500

3»7oo

10.000
0
0
0
5,000
5,000
0

71,599
11,2^0
7,425
34,208
7,791
10,925

44,025
7,650
1,500
22,700
4,500

12.364
4,300
3,26l
3,350
1,453

11.850

9,121
1,800

6,287
0
1,987
2,050
1,000
500
750

4,485
625
1,307
1.323
1,230

9,300
3,000
2,000
2,400
1.900

4,107
1,433

6,925
925
725
2,250
725
1,475
825

5,03s
1,200

9,950
ls850
950
2,350
1,200
1,700
1,900

4,277
158

12,800
2,200
1,700
3,000
2,700
1,500
1,700

4,225
819
450
1,451
570

1,27b
l|l44
254

4oo
535

939
2,455
1,820
1,057
1,050

0

7,675
4)400
2,925
3,425

Total
100.332
6,590
2,799
25851
49,290
11,905
26,897

37,200 14,026
5,300 2 , 3 4 5
5 , i o o 1,082
12,500 3.74?
7,300 1,694
7,000 4,665

8,050
1,750
1,750
2,750
1,800

8?0
914
885
1,112

5,ioo

44,308
2,000
0
0
25,400
5,000
11,908

6 2 , 3 9 1 202,359 H44.93S
16,079 66,837 398,700
i4,6oo 3 1 , 1 8 1 12,367
, 0
8,871
5Q0
27,621
72,320
12,750
6,250

4,876
5S5 1
1,036
1,926
1,329

823
190
1,101
1.35S

9,800
500
0
0

$5,000
and
over

22,400 11,533 76,734
8,400 2 , 6 2 5 17,700
9,000 2,805 16,275
249
500 1 481
2,400 24,554 39v535
1,000
2,275
1,100
700

5,725
1,325
1,100
1,450
1,850

366

20,229
1,200
1,205
850
10,090
700
6,184

$1,000
to
5,000

10,400

0

25,450 25,000
93,450 179,150
3,500
0
28,b50 100,500
3,500
0
32,350 53,650
18,916
2,166
7,000

856.717
515,016

86,753

Il,2b7
201,263
29,465
12,953
534,817
91,877
3S.277
231,653
40,947
132,063

4,000

0
0
0
0
0

88.294
18,284
24,566
25,835
19,609

14,200
S.200
2,000
3.000
0
1,000
0

0
0
0
0
0
0
0

79.283
13,910
10,019
19,580
9,732
10,358
10,684

5,750

Table VII - Distribution of the Aggregate Capital Stock of Incorporated Banks in 1930 by Size of Capital Stock (Continued)

S t a t e s by
geographic
divisions
Southwestern
Louisiana
Texas
Arkansas
Oklahoma
Western Grain
Minnesota
N o r t h Dakota
South Dakota
Iowa
Nebraska
Missouri
Kansas
Bocky Mountain
Montana
Idano
Wyoming
Colorado
New Mexico
Arizona
Utah
Nevada
P a c i f i c Coast
Washington
Oregon
California
UNITED STATES




Under
$15
$15
2,716
113

654
917
1,032
11,953
2,339
715
326
1,027
S73

3,669
2,899

$15
to
25

State Banks
Cap L t a l .stock by s t a e s r o a p s (xn thousands of do! . l a r s )
$500
$50
$100
$200
$25
$100
to
to
to
to
to
$50
$25
50
200
500
1,000
100
4,90S
766
3,038
744
360

9,950
2,100
4,950
2,100
800

5.312
1,321
2,381

9,000 12,092 25,100 16,547
1,410 1,949 3.550 2,769
1,470
674
322
850
682 2,150
1,095
76?
1,080 1,471 7,600 4,919
1,050 2,067 4,375 2,619
1,410 3,260 3,225 3,062
1,485 1,989 3,350 2,089

23,300
2,850
250
950

6,7lb
1,065
0
130
2,170

2 , 6 2 5 3,46o
315
135
690 2,194
405
553
1,215 •
578

630
0
150
90
360
0
15
15
0

1,334

765
450
315
0

8,000

675
4,200
1,425
1,700

1,986
415
275
250

s,4oo
2,750
4,750
3.350

i,46o
150

55s
2,175
620

4,500
750
650
300
1,000
350
300
800
350

9S7
lbO

5,350
1,600
1,200
2,550

2.174

20,352 21,380 26,571 84,450 52,300 103,700

39,699

657
0
112
lbO

375
0
10
0
0

4S5

364
121
0

74o
ISO
20
214
0
20

4,200
925
375

4oo

S50
325
50

34o

i4o

575

451
0

212
100
112
0

1,450
1,725
950
775

1,334

20

200

160

95

465
330
539

75

0
210
0
201
195
146

465
257
1,452

§1,000
to
57>000

$5,000
and
over

Total

9.000
1,700
4,600
1,900
800

3,455
1,001
1,575
379
0

S.003
2,478
3,000
1,825
700

4,600
1,900
1,600
1,100
0

12,403
6,103
5,300
1,000
0

6,750
6,750
0
0
0

81,182
25,357
34,182
14,308

17,600
1,600
100
500
5,300
600
6,700
2,800

4,oso

15,428

270
150
0
1,750
150
1,210

l,4oo

550

0
200
3,010
500
8,468
1,850

3,900
800
0
0
600
0
2,000
500

13,600
3,000
0
0
3,750
0
5,750
1,100

22,000
0
0
0
0
0
22,000
0

181.318
23,002
4,531
6,300
41,077
15,647
67,679
22,582

5,000
1,100
600
600
600
0
600
1,000
500

1,170
300
450
150
150
0
120
0
0

4.890
700
0
0
240
250
950
2,150
600

2.600
600
0
0
1,000
0
500
500
0

3,550
0
0
0
0
0
1,050
2,500
0

0
0
0
0
0
0
0
0
0

31,504
5,690
3,367
1,970

4.000
800
800
2,400

4,980
600
425

13.857
2,987
1,250
9,620

3.125
2,100
2,000
4,025

15.700
3.200
0
12,500

49.000
0
0
49,000

109.432
14,856
7,760
86,816

3,955

7,335

5,339

1,085
3.911
8,326
1,816

124,000 72,300 232,225 155,578 418,486 711,838 2,062,879

Table VII - Distribution of the Aggregate Capital Stock of Incorporated Banks in. 1930 by Size of Capital Stock (Continued)

S t a t e s bygeographic
divisions
New England
Maine
New Hampshire
Vermont
Massachusetts
Ehode I s l a n d
Connecticut
Middle A t l a n t i c
New York
New J e r s e y
Delaware
Pennsylvania
Maryland
D i s t . of C o l .

$25
3.75
25

75
75

125
0
75
7,475
2,225
600
4,200

375
0

North Central
Michigan
Wisconsin
Illinois
Indiana
Ohio

5,850
325
750
2,325
1,225
1,225

S o u t h e r n Mountain .
West V i r g i n i a
Virginia
Kentucky
Tennessee

2,125
550
600
550

Southeastern
North C a r o l i n a
South C a r o l i n a
Georgia
' Florida
Alabama
Mississippi



425
750
75
100
200
25
325
25

National Banks
C a p i t a l s t o c k by s i z e 1groups (:m
$100
i $50
$50 !
$100
to
to
200
I 100

$25
to
50
35
0

35
0
0
0
0

3,250
SOO
550
500
900
0
500

1.487
%0
375
202
0

75

10.600
1,100

3,poo
1,400
4,800
300
1,000

6,120
675
1,025
1,010
2,570
120
720

20,747
3,225
1,550
1,300

73,915
22,850
17,450
913
30,575
1,052

1,175
330
120
0
615
110
0

18,550
5,450
2,600 1
150
9,550
800
0

5,840
1,420
510
210
3,148
552
0

2,375
240
175

11,700
1,300
1,600
5,850
1,900
3,050

6,375
3U0
845
2,788
720
1,682

35,200 29,758
14,200 5,215
10,000 2,650
300
0
8,800
21,073
1,900
820
0
0
24,400 12,358
3,600 1,785
2,700 1,625
7,600 2,890
4,300 2,398
6,200 3,660

5,650
1,200
1,700
1,650

3,162
545
735
893
989

10,600
2,20c
3,60c
3,10c
1,70c

1,725
150
150
700
225
360
140

9.60c
2,100
70C|
1,600;
1,900
2,100
1.20CJ

Ut
523

1,194
450

374
ISO
190

560
80
J40
175
35
230
0

thousands of d o l l a r s )
$200
$500
$1,000
to
to
to
1,000
500
5,000

. 750
4,582

1,075

47,530
15,650
7,830
0
19,500
2,500
2,050

26,131
0
0
0
16,621
1,500
8,010

72,500
0
0
0
72,500
0
0

Total
157.470
7,370
5,725
5,160

lx

iill

21,412

89,070
32,444
14,850
0
29,126
5,000
7,650

374,725
336,225
0
0
38,500
0
0

683.238
436,009
56,610
1,648
165,087
13.109

4 3,050
3,275
5,500
15,075
6,625
13.025

31,450
5,700
4,950
10,500
5,200
5,100

42,490
3,250
5,000
10,540
10,500
13,200

80,000
12,500
10,000
46,500
0
1,100

262.273
32,090
33.145
105,040
33.333
58,665

4,400
775
1,585
1,560
480

11.945
2,670
4,125
2,600
2,550

9,250
2,500
3.100
2,300
1,350

38.125
3,000
13,500
6,000
15,625

0
0
0
0
0

86.451
13.890
29.319
18,833
24,409

4,525
695
385
1,370
150
1,130

16,510
3,175
1,500
2,800
2,050
4,875
2,110

8,600
3,700
1,000
600
1,300
1,000
1,000

20,150
1,000
1,500
1,000

io,4oo

76.220
11,475
5,825
19,395
15,785
18,270
5.470

1,100
3.1*00
500
450
550
700
1,000
200

16.225
1,200
0
500
6,225
1,850
6,450

$5,000
and
over

795

9,4oo
7,250
0

0
0
10,400
0
0
0

10,775

Table VII - Distribution of the Aggregate Capital Stock of Incorporated Banks in 1930 by Size of Capital Stock (Continued)
National Banks
Capital stock by sisse groups. (in thousands of dollars)
$100
$500 $1,000
! $50
$200
$100
to
$50
to
to
to
to
200
1,000
500
5.000
100

1
States bygeographic
divisions
Southwestern
Louisiana
Texas
Arkansas
Oklahoma
Western Grain
Minnesota
North Dakota
South Dakota
Iowa
Nebraska
Missouri
Kansas

1

$25
$25
7,800

2,445

11,800

4,103

i4,4oo

4,215

125

0

4oo

0

700

300

3,325

1,755

7,750

3,368

11,000

2,480

600

100
590

800

3^0
395

500

700
735

3.750
n,4oo
2,750
1,775
1,250
1,425
1,225

3,827

575

275
562

2,1+00

960
275
2S5
895
• 575

2,850
16,350
2,600

2,500

3,500

755
605
S65

2,500

1,050

3,950

1,255

4,350

2,025

500
700
300

220
700
80
195
0
0
0
60

4oo
150
600

600
675
300
150
300
0
0
0

^75.^
1.037<x>

5,200
1,250
1,450
2,500

4o,5i2 (1)

12,796

2,137

1,075

225
50
100
50
625

2,850

3,500

4,ioo
3,100
1,400

375
105
200
70

Pacific Coast
Washington
Oregon
California

625
350
125

15.400
3,4oo

1,015

700
950

i,4oo

2,600

4,490

2,200

150
270
275
535
450
120

810
190
100
65
330
35
0
0
4o

Bocky Mountain
Montana
Idaho
Wyoming
Colorado
New Mexico
Arizona
Utah
Nevada

UNITED STATES

to
50

500
200
300
50

875
225
150

1,280

900
1,000
1,600

2,000

200
500
300
200

9,900

36,4oo
6,000

13,000

23,700
0

8,000

6,700

5,000

20,325
3.5-50

12,050
2,200

22,100
5,000

29,100
17*000

1,350
875

0
0

0
0

4,4oo
1,950
5,250
2.950

2,600
1,600

3.900
1,750

3,000
3,600
8,500
2,000

0
0
0
0

5,350

4,000

0
800

0
0
0

0
0
0

1,850

1,550

4,000

650
700
0
400

0
500

0
0
0
0

6,850
2,450

420
135
725

7,500
2,200
1,800
3,500

4oo
710
2,025

12.650
2,500
2,725
7,425

81,850 29,717

132,050

69.3S6

224,417

3.135

*•!' Includes one bank in California with capital stock of $12,000.



18,200
1,000
11,900
2,050
3.250

$5,000
and
over

600
7,300
1,000
1,000

2,600

700

0
0

Total

122,263
9,125
80,578
6,090
26,470

0

137,892
38,485
5,495
4,785
21,470
1^,855
35,225
17,577

0
0
0
0
0
0
0
0
0

31.190
4,985
2,675
2,270
12,600
i.9ie
1,950
3,300
1.500

12,100

8,075
3,100

25,700

7,500

117,500
8,000

0
4,975

6,000
12,200

109,500

183,552
26,100
13.495
143,957

148,430

304,166

697,225

1,740,549

0

Table V I I I - Distribution of Incorporated Banks in 1920 by Size of Loans and Investments
S t a t e Banks
S t a t e s by
geographic
divisions

Under
#150

Number of b a n k s g r o u p e d by s i z e of l o a n s a n d
( i n t h o u s a n d s of d o l l a r s )
$500
$1,000
$2,000
$5,000
$750
$150 ! $250
to
to
to
to
to
to
to
5,000
250
500
750
2,000
1,000
10,000

New E n g l a n d
Maine
New H a m p s h i r e
Vermont
Massachusett s
Hhode I s l a n d
Connecticut

15
2
3
2
0
3
5

9
2
1
0
1
0
5

Middle A t l a n t i c
New Y o r k
New J e r s e y
Delaware
Pennsylvania
Maryland
D i s t r i c t of C o l .

71
7
4
2
35
23
0

64
18
2
1
28
15
0

North Central
Michigan
Wisconsin
Illinois
Indiana
Ohio

501
42
157
161
86
55

Southern Mountain
Y/est V i r g i n i a
Virginia
Kentucky
Tennessee
Southeastern
North Carolina
South C a r o l i n a
Georgia
Florida
Alabama
Mississippi



$10,000
to
50,000

$50,000
and
over

Total

28
4
1
0
13
1
9

21
2
0
0
16
2
1

3
0
0
0
1
2
0

320
55
25
39
112
16
73

97
28
22
3
34
9
1

76
38
10
1
20
4
3

17
14
0
0
3
0
0

1,233
326
154
20
559
144
30

181
36
14
•62
25
44

53
9
1
22
4
17

46
15
2
13
1
15

10
2
0
5
C
3

3,621
541
817
1,017
625
621

84
31
19
16
18

35
8
12
7
8

9
1
4
1
3

4
1
0
1
2

0
0
0
0
0

1,450
216
335
451
448

120
25
28
24
16
9
18

42
13
7
10
2
2
8

8
0
0
4
1
3
0

6
2
0
2
0
1
1

0
0
0
0
0
0
0

2,248
~ 491
371
629
205
246
306

35
10
4
3
7
1
10

30
4
3
3
10
2
8

72
16
6
17
20
3
10

82
9
3
9
41
2
18

152
49
6
5
61
26
5

132
37
13
1
54
22
5

123
25
17
2
56
16
7

273
58
33
3
155
20
4

228
52
47
2
113
9
5

698
73
178
180
160
107

1,074
169
234
306
179
186

479
80
119
121
75
84

261
49
59
61
46
46

"318
66
53
86
49
64

497
26
106
138
227

298
33
69
106
90

338
69
86
114
69

118
27
24
47
20

67
20
15
21
11

808
144
119
276
79
95
95

460
101
68
140
37
63
51

509
137
87
119
45
50
71

192
42
41
38
12
15
44

103
27
21
16
13
8
18

25
6 •
4
5
3
0
7

i n v e s t m e n t !3

•

^

Table VIII- Distribution of Incorporated Banks in 1920 by Size of Loans and Investments (Continued)
State Banks
S t a t e s by
geographic
divisions

Under
#150

#150
to
250

Number of banks grouped by s i z e of l o a n s and i n v e s t m e n t s
I t h o u s a n ds o i d o l l a r s ;
$50,000
$750
$10,000
#500
$250
$1,000
$2,000
$5,000
to
and
to
to
to
to
to
to
1,000
750
over
500
50,000
2,000
5,000
10,000

Total

973
59
451
196
272

481
38
204
68
171

429
58
195
66
110

159
27
69
32
31

61
17
18
19
7

79
14
41
9
15

31
7
12
7
5

8
4
2
2
0

4
4
0
0
0

1
1
0
0
0

2,231
229
992
399
611

2,564
351
362
163
273
344
645
426

1,870
268
212
146
297
291
330
326

1,918
345
125
176
430
284
316
242

535
113
12
44
169
59
89
49

214
48
3
13
71
14
44
21

209
33
3
8
75
14
50
26

74
14
0
1
31
1
25
2

20
5
0
1
7
1
4
2

8
0
0
0
1
0
7
0

1
0
0
0
0
0
1
0

7,413
1,177
717
552
1,354
1,008
1,511
1,094

Rocky M o u n t a i n
Montana
Idaho
%oming
Colorado
New M e x i c o
Arizona
Utah
Nevada

388
102
38
53
135
30
13
15
2

247
83
34
20
43
18
17
29
3

223
53
44
26
43
15
12
25
5

76
16
8
8
8
6
7
15
8

34
8
3
1
11
1
3
6
1

50
9
10
3
9
5
5
8
1

30
7
4
0
3
0
10
3
3

6
0
0
0
3
0
0
3
0

0
0
0
0
0
0
0
0
0

0
0
0
0
0
0
0
0
0

1,054
278
141
111
255
75
67
104
23

P a c i f i c Coast
Washington
Oregon
California

169
92
50
27

141
56
41
44

218
78
42
98

118
32
26
60

57
10
9
38

101
22
9
70

59
10
6
43

19
2
1
16

20
1
1
18

3
0
0
3

905
303
185
417

UNITED STATES

5,991

4,268

4,886

1,844

950

1,306

762

248

185

35

20,475

Southwestern
Louisiana
Texas
Arkansas
Oklahoma
Western Grain
Minnesota
North Dakota
South Dakota
Icwa
Nebraska
Missouri
Kansas




Table VIII - D i s t r i b u t i o n of Incorporated Banks in 1920 by Size of Loans and Investments

(Continued)

National Banks
S t a t e s by
geographic
divisions

ITumber of banks grouped by s i z e of loans and investments
(in thousands of d o l l a r s )
$10,000
#250
$500
#750
#1,000
#2,000
#5,000
$50,000
to
to
to
to
to
and
to
to
50,000
10,000
2,000
5,000
over
750
500
1,000

$150

$150
to
250

Hew England
Maine
New Hampshire
Vermont
Mas sachus e t t s
Rhode I s l a n d
Connecticut

2
0
0
1
1
0
0

21
4
5
2
8
1
1

62
11
16
7
15
2
11

59
10
10
13
16
1
9

44
5
.6
8
19
4
2

99
19
11
15
39
0
15

82
11
7
3
37
5
19

25
3
0
0
15
2
5

12
0
0
0
6
2
4

3
0
0
0
3
0
0

409
63
55
49
159
17
66

Middle A t l a n t i c
New York
New JerseyDelaware
Pennsylvania
Maryland
D i s t . of C o l .

27
7
2
0
18
0
0

82
26
8
2
43
3
0

329
105
31
5
170
18
0

233
73
20
4
122
14
0

219
54
55
3
113
14
0

388
104
59
3
198
21
3

244
65
35
2
124
11
7

84
19
18
0
39
5
3

55
25
4
0
18
6
2

19
13
0
0
6
0
0

1,680

North C e n t r a l
Michigan
Wisconsin
Illinois
Indiana
Ohio

51
1
7
24
6
13

135
5
9
56
40
25

293
12
25
122
62
72

215
19
19
84
37
56

171
9
20
60
37
45

278
37
42
74
40
85

142
18
20
40
22
42

48
6
8
10
6
18

26
4
0
6
4
12

8
1
1
4
0

1,367

S o u t h e r n Mountain
West V i r g i n i a
Virginia
Kentucky
Tennessee

15
4
5
3
3

36
10
13
8
5

145
39
40
37
29

85
15
29
24
17

66
15
23
16
12

94
24
24
30
16

37
7
13
10
7

28
8
11
4
5

13
0
7
2
4

0

519
122
165
134
98

Southeastern
North Carolina
South C a r o l i n a
Georgia
Florida
Alabama
Mississippi

9
1
2
1
1
4
0

32
3
2
6

87
12
18
20
8
25
4

93
17
18
24
9
19
6

39
6
4
9
10
6
4

107
25
24
19
11
21
7

58
19
9
9
5
7
9

9
3
3
1
1
1
0

12
1
2
4
3
2
0




Under

16
0

c
0
0
0

0
0

c

0
0
0
0

Total

491
212
19
851
92
15
112
151
480
254
370

446
87
82
93
53
101
30

Table VIII - Distribution of Incorporated Banks i n 1920 by Size of Loans and Investments (Continued)
National Banks
Number of
S t a t e s by
geographic
divisions

•

Under

.§50,000
and
over

§150

#150
to
250

Southwestern
Louisiana
Texas
Arkansas
Oklahoma

35
4
42
8
31

150
5
71
15
59

347
3
184
19
141

155
4
88
14
49

83
6
48
10
19

93
4
57
8
24

77
7
44
9
17

16
2
9
0
5

19
3
13
0
3

0
0
0
0
0

1,025
38
556
83
348

"western. G r a i n
Minnesota
North Dakota
South Dakota
Iowa
Nebraska
Missouri
Kansas

59
li
10
10
5
2
4 17

183
27
44
12
25
14
18
43

545
127
79
44
108
62
33
87

322
66
27
23
81
54
27
44

143
31
6
23
45
19
7
12

201
42
12
18
62
22
12
33

75
16
2
5
22
7
13
10

23
4
1
1
5
4
6
2

24
5
0
0
5
4
9
1

4
2
0
0
0
0
2
0

1,579
331
181
136
358
188
136
249

Bocky M o u n t a i n
Montana
Idaho
Wyoming
Colorado
New M e x i c o
Arizona
Utah
Nevada

75
42
9
3
10
6
1
4
0

76
32
7
5
18
11
1
2
0

117
29
20
14
37
10
1
4
2

77
12
15
4
25
7
7
4
3

45
8
9
4
17
4
0
2
1

63
7
13
9
21
4
5
3
1

51
14
6
7
6
4
5
6
3

11
1
2
1
3
1
0
3
0

4
0
0
0
4
0
0
0
0

0
0
0
0
0
0
0
0
0

519
145
81
47
141
47
20
28
10

P a c i f i c Coast
7/ashington
Oregon
California

22
2
4
16

44
5
7
32

104
23
23
58

76
14
16
46

51
8
17
26

100
16
14
70

45
8
6
31

16
5
0
11

19
6
3
10

3
0
0
3

UNITED STATES

345

759

2;029

1,315

861

1,423

811

260

184

37




§250
to
500

b a n k s g r o u p e d b y s i z e Df l o a n s a n d i n v e s t m e n t s
( i n t h o u s a n d s o f do l i a r s ]
§10,000
$2,000
$1,000
§5,000
$500 ! !|750
to
to
to
to
to
to
5,000
50,000
2,000
10,000
1,000
750

Total

•

480
87
90
303

8,024

Table IX - Distribution of Incorporated Banks in 1930 "by Size of Loans and Investments

States bygeographic
divisions

Under

J&50

$150
to
250

7

State Banks
Number of barf«_gr_quiped by size of loans and investments
(ii1 thousands of iollars)
$250
$500
$750 $1,000 $2,000 $5,000 $10,000 $50,000
to
to
to
to
to
to
and
to
500
750 t1,000 2,000
5,000 10,000
50,000
over

12
0
2
0
0
1

23

IS

77

6

7

11

2
4
2
0

1
2

9

9

9

5b
4
4
2
29
17
0

178
27
20

133
32
11

7
90
3P

6

SSI
53
99
2S4

93

225
149

52

97

Southern Mountain
West Virginia
Virginia
Kentucky
Tennessee

195
15
SI

Southeastern
North Carolina
South Carolina
Georgia
Florida
Alabama
Mississippi

550
113
50
162

New England
Maine
New Hampshire
Vermont
Massachusetts
Bhode Island
Connecticut

11
1

3

p
4

Middle Atlantic
New York
New JerseyDelaware
Pennsylvania
Maryland
Dist. of Col.

24
2
1

North Central
Michigan
Wisconsin
Illinois
Indiana
Ohio




3

2
0

2

5
10
6
0

115
184

1
0
1
1

1
4

4

61
15
2

103
27
18
1
46
10
1

69S

9S7

49 6

84
143

154
245
264

82
120
127

153
171

77
90

261

267

117

29

46

25

64

26

26

37

263
50

5b
100

76
235
47
23

110

55
23
43

59

44

56

3

bl

£7

H
30

3*
69

102
13
6

12
17
3
25

I
27

344
91
72

323
88

14&5

25

4

53
15!
15

'

b

26"?

421

236

6l
62
60
29
51

8S

45

116

i

42

31

4

4

2

0

23
0
10

3

ig

115
34
22
1
49

119
40
28

I
73
12

2

9

'<

Total

326

3
0
0
0
1
2
0

47
25
39
100
16
99

33

1,428

21

372

4
36

3
0
7

232
.32
632

8

2
0

^

13
3

3,823
600

0

1,220

3
55
18
1
14

773

8
16

2
20

5
0

77

28
48

61
17
13
20
11

92
30
22
30
10

38
12
12
13
1

12

12
2
2

0
0
0
0
0

1,255

115
18
10
20
16
12

61

69
14

2b

19

0
0
0
0
0
0
0

1.335

39

10
2
1
4
1
0
2

29

9
10

9
9
5

64

6

13
8
8
20

6
4
5
3
2

6

3

2

4
3

4
4
6
3
2
0
0
1
0

5

603
627
179
278
419

379
262
133
315
152
215
258

Table IX - Distribution of Incorporated Banks in 1930 by Size of Loans and Investments (.Continued)

States by
geographic
divisions

Under
$150

Southwestern
Louisiana
Texas
Arkansas
Oklahoma
Western Grain
Minnesota
North Dakota
South Dakota
Icwa
Nebraska
Missouri
Kansas

750

$150
to
250

39
363

271
27
117

171
177

53
74

1,891

245
183
11s
216
255
4ss
3S6

27^
51
12b
48

98
20

44

49

2k
10

1,065....1,099

306

155

37
74
234
156
210
199

210
29

76

66

8
88
20

29U
155
206
139

k

3^
26

69

4,5o4

2,809

3,375

1,39^

6
5
8

5
3
10
3

7

20

0
1
29
1
2k
2

32

23

25

6
5
3

5
5

I

51
11

55
18
15
22

UNITED STATES

Gk

ko

154
63
22

36

i4o
23
0

3^

96

6

158
2S
1

77
33

118
68
4l
9

Pacific Coast
Washington
Oregon
California

9

3

5

5

25

26
18

3
0
0
0
0
0

4J46

0

8
2
0
0
2
0

k

5

kl

5

79
4
4
6
3

44

120
27
28

1,527

I

5

2
18

184

1
1
0
0
0

9

9
6

k

20

5

Total

7
4
2
1
0

50
21
12
12

22

16
12
13

45

60
10

i4i
24
22
19
29
10
6
26

Rocky Mountain
Montana
Idaho
Wyoming
Colorado
New Mexico
Arizona
Utah
Nevada




State Banks
Jfomber of bar!"s grouped by size of 1 oans and investments
(in thousands of dollars)
$500
$250
$750 $1,000 $2,000 $5^000 $10,000 $50,000
to
to
to
to
to
to
and
to
50,000
500
5,000 10,000
over
1,000
2,000
150

2
0

12
1
0
0

k

191
686
328
322

ikl

254
277
974
602

7

4

3

1,093

0

0

0

799

5
1
0
0
0
0
1

5
0
0
0
1
0
1

591
121

3

3

0

0

0
0
0
0
0
0
0
0
0

6
36

37
6
2
29

11
2
2

8
2
0

0
0

7

6

6

588
224
135
229

1,280

873

289

251

59

15,619

k

1

2
0
2
10

2
0

k

5
5

k

2

6
3
3

m
12
13
19

59
17

785

1

6

96
59
150
26
30
84
25

Table IX - Distribution of Incorporated Banks in 1930 by Size of Loans and Investments (.Continued)

States by
geographic
divisions

Under

_Jl2Q
Hew England
Maine
Hew Hampshire
Vermont
Massachusetts
Rhode Ialand
Connecticut
Middle Atlantic
Hew York
Hew Jersey
Delaware
Pennsylvania
Maryland
Dist. of Col.

$150
to
250

5

k

0
1
0

0
0
1
0
1
2

3

0
1

7
1
0
0

53
10
0

1

6

35

0
0

l
0

Horth Central
Michigan
Wisconsin
Illinois
Indiana
Ohio

kG

106

2

5
7

8
Ik

50
27
17

Southern Mountain
West Virginia
Virginia
Kentucky
Tennessee

12

21

3

Southeastern
Horth Carolina
South Carolina
Georgia
Florida
Alabama
Mississippi



3
19

2
1

6
lH
3
2
1
0
8
0

National Banks
Huinber of baaks £*rr.irocl h y size of loans and investments
(in thousands of dollars) ,
$250 $500
$750 $1,000 $2,000 $5,000 $10,000 $50,000
to
to
to
to
to
to
and
to
750 1,000
5C0
2,000: 5,000 10,000
50,000
over

32
1
10

kk
7

38

93

5

12

10

12
11

5
9

7

8
2

^

0

12
1

6

7

5

7

lH

1
12

234

227

216
68
30
2
106
10
0

H53
135

H10
135

121

7
67

15

1,803

Ho

22

7

l

22
0

15
0
25

0
0

1

H

1
0

556
297
lb
8H5
77

65
3f
H
128
6

M2

109

9

0

0

268
16
25
112

150

H9
66

26
ki

7
5

113
26
31

106
21

3

3k

30
21

6H
9
9

54
7
5
13

°
32
2
2
12

Total

22

20

5

5

11
0

20
1

9
17

57

3k

11
16
2

Hi
0

102
20
11
10

33

H8

lH
H
7

6
1
l

23
1
0
0

3
0
0
0

377
52

lH

3

152
10

1

0
0

§

62

82

7

204
28
1

175
16
3

50
5

262

171
20
28
60
2H

62
10
10
20
8

31

7

1,261

2
1

126

39

lH

5
H
7
5

10

52
13
20
13

17

19
2

19

0

Ho
3

82
23

58

2
8

7

lH
7

3
7
3

10

8

158
26
Ik

59
?2
37
55
11
22
Ik
8

3
75
Hi
69
105
22
31

33

5

16

6

13

18
8

10

9

13

k

6
7
1

0
0
2
0
2

5
H
8

12
0
1
1

5
5
0

7

3

0
1
0
0
0
0
0
2
0
0
2
0
0
0

12

155
H62
210
308

500
111

157
I33
99
365
6H
35
75
55
101

35

Table IX - Distribution of Incorporated Banks in 1930 by Size of Loans and Investments (Continued)
National Banks
States by
geographic
divisions

Under
$150

Southwestern
Louisiana
Texas
Arkansas
Oklahoma
Western Grain
Minnesota
North Dakota
Soutn Dakota
Iowa
Nebraska
Missouri
Kansas

134
2
92

$150
to
250

1S9

3

7
33

103
13
70

79

210

7
l4
9

3

?
3^

9

17
29
32
15

20

53

Rocky Mountain
Montana
Idaho
Wyoming
Colorado
New Mexico
Arizona
Utah
Nevada

26
11

46

3

6

1
8

l
22

3

3

0
0
0

1
0
0

Pacific Coast
Washington
Oregon
California

12

Ho

3
7

8
15
17

UNITED STATES

335

701




12

s

2

13

Number of banks grouped by size of loans and investments
(in thousands of dollars)
$250 $500
$750 $1,000 $2,000 $5,ooo $10,000 $50,000
to
and
to
to
to
to
to
to
50,000
over
750 1,000
5,000 10,000
500
2,000

285
8
173
18
86

110.

81

3
71
10

i

50

26

23

414 > HI
45
92
li
32
12
3^
41
78
21
65
28
17
30
S5
88
12
16
7
32
6
2

69
5

.4

6

3

18

16

2

3

143

82
18

23

15

8

4

12
0

7

1

105 |
24 i

37

4

10
23
11
15
17

5
35

8
13

20
11
27

9

1
0
8
1

19
8

6
3

19

29

4o

12

*

4
3
3
r

8

9

5
4

2

11
l
l
0
l
l

5
3
5

l

l
2

2

18
1
1
1
2

45
14
11
20

73
22
13
38

49
12

44

6l
13
15
33

1,591

968

767

1,320

93
25
24

o

4

#

O

l

19

4o
6

2
17

6

22
17

58
2

5
5

7
5
4
l
l

3

I0

3
0
0
2

4
4
2
<b

1
0
0

5
0
0
0
0
10

9

11
2
2

28

7

1,014

307

Total

2
0
1
0
1

969
31

4
3

1,252

0
0
0
0
1
0
0
0
0
0
0
0
0
0
0

593
67
278
263
112

95
24l
171
125
245
317

63

4l

25
120
26
14
18
10

403
105

l

9
1
1

4

7

205

202

42

7,247

5

93

Table X - Distribution of the Aggregate Loans and Investments of Incorporated Banks on June 30, 1920
" y Size of Loans and Investments
b
State Banks
Loans and i n v e s t m e n t s by s i z e groups 1 i n thousands of d o l l a r s )
S t a t e s by
Under
$150
$500
$750 $1,000 $2,000 $5,000
$10,000 | $50,000
$250
geographic
Total
to
to
to
to
to
to
to
i
and
to
divisions
$150
750
1,000
2,000
5,000 10,000
50,000
over
250
500
New England
Maine
New Hampshire
Vermont
Massachusetts
Rhode I s l a n d
Connectic ut
Middle A t l a n t i c
New York
New J e r s e y
Delaware
Pennsylvania
Maryland
D i s t . of C o l .
North Central
Michigan
Wisconsin
Illinois
Indiana
Ohio
S o u t h e r n Mountain
West V i r g i n i a
Virginia
Kentucky
Tennessee
Southeastern
North C a r o l i n a
South C a r o l i n a
Georgia
Florida
Alabama
Mississippi



1,216
13s
300
S3
0
17

f

524
6,452
611
412
lbS
2,950
2,3H
0

1,796
420
215
0
219
0
942

9,561
2,132
1,643
1,969
1,154
0
2,603

12,909
3./13
402
22s
5,560
3,006
0

56,546
lS,44o
2,49s
1,937
22,300
9,543
1,823

64,712 156,09s 405,999
3.960 14,643 62,330
14,246 35,3i;+ 33,017
30,9?2 52,l?44 130,70S
9,5b2 32,317 b2,134
6,022

21,230

67,sio

4 2,825
3,531
S.416
12,799
19,491

5S,243
6,593
13.210
20,613
17,322

121,304
25,73s
30,509
4o,344
24,712

70,23S
12,693

39,939 179,530
19,524 43,976
13.369 29,332
27,430 41,672
7,047 16,126
12,146 17,254
q
» ° 2 7 2^,670

9,563
24,225
7,243
3,520
7,994

22,029
6,233
2,337
l,S85
4,464
73

r °
6,270

2 6 , 4 o s 103,553 259,199 198,902
3.578 22,343 24,736 2 9 , 6 1 1
6,074
2,623
8,333
3,140
0
2,730 24,7591 25,247
8,764 29,1281136,771 93.666
1,525
4 , 3 5 6 ; 5,54o
7,133 1^,634 54,765 61,766

412,858
24,189
0
0
3^1,360
30,878
16,431

262,366 1,297,388
0
113,480
0
29,730
0
60,723
133.695
749,221
128,671
179,656
165,078
0

81,819 106,936 333,885 |704,291 694,737 1,564,637 2,447,756 6,060,068
907,764 2,217,317 3,641,880
22,645 21,516 79,466!159,222 210,636
570,S96
3,065 14,939 4 7 , 6 3 l ! l 4 5 , 3 5 3 153.036
194,510
0
544 1,730 3 , 5 7 6 ! b,90b 22,530
49,794
12,125
0
33.557 43,650 221,847 345,860 2 4 2 , 5 6 1 343,168 229,939 1,496,392
0
63,688
13.805 13.972 25,866 ' 2 7 , 5 0 7 59,467
219,165
81,941
0
43,432
3.203
5,499 15,^43
6,079
6,457
343,686 4 , 2 0 3 , 3 2 5 ( 1 )
869,622
293,632 231,405 442,336 546,301 344,484
4s,7o4 4 l , 3 l 4 j 90,874 103,265 60,439 261,830 195,3^5 883,204
50,504
0
423,566
7 2 , 0 7 4 5 0 , 2 1 1 ! 7 1 , 1 2 1 42,816
9,263
432,341 1,537, n i ( ! )
290,547
31,410 59.9371123,745 194,849 l 4 0 , 1 0 3
10,610
0
362,936
44,363 3S.394j 66,327 70,348 2 7 , 3 3 1
997,008
256,131
HO,o49! 90,319
135,523 106,793
221,000
52,081
i
706,828
73,616
57,0521115,505 109,S37 56,342
0
11,128
0
3,207
153.555
15,817
70,898 16,954 42,737 23,550
0
0
170,963
14,520 12,873 26,536 40,190 24,704
5,294
0
14,499
180,534
28,263 17,564 21,730 18,928
0
201,776
12,29s
9,656 24,502 27,169 13,137
47,989
999,324
0
115,583 38,328 165,644 125,528 54,434
110,100
. 0
32,263
0
24,972 23,143 33.932 33,615
234,123
0
0
0
156,723
24,569 17.307 38,498 22,585
13.719 33.360 2 7 , 7 3 1 26,639
0
26s,840
22,531
51.533
0
36,125
8,008
6,781
7,423 11.372 22,120
0
7 , 1 3 1 12,04S
0
105,101
7,224 19,787
9,493
11,448
l4s,4l2
0
0
pf.RQO 15,101 25*686. 22,592.
14,356

Table X - D i s t r i b u t i o n of the Aggregate loans and Investments of Incorporated Banks in 1920 by Size of
Loans and Investments (Continued)
S t a t e Banks
S t a t e s bygeographic
divisions
Southwestern
Louisiana
Texas
Arkansas
Oklahoma
Western Grain
Minnesota
ITorth D a k o t a
S o u t h Dakota
Iowa
ITebraska
Missouri
Kansas
Hocky M o u n t a i n
Montana
Idaho
doming
Colorado
New M e x i c o
Arizona
Utah
Nevada

Under
$150
87,629
5,633
39,354
15,337
27,305

Loans a n d i n v e s t m e n t s b y s i z e g r o u p s ( i n 'b h o u s a n d s Df d o l l a r s }
$2,000
$5,000
$50,000
$10,000
$1,000
$250
$750
$500
to
to
to
to
and
to
to
to
10,000
2,000
5,000
50,000
over
500
750
1,000
I
60,676
104,577
91,499
53,301
101,995
149,447
95,333 52,598
17,438
101,995
60,676
19,412 i
24,402
20,682
16,213 15,345
56,557
35,831
14,356
0
68,280
41,511 14,790
11,591
21,269
0
23,160
19,293 16,234
15,043
0
18,991
6,229
14,987
37,325
18,311
0
0
0

#150
to
250
93,827
7,572
39,503
13,382
33,370

?

241,338 365,713
33,489 52,361
36,627 40,702
15,167 28,473
26,597 58,272
33,676 57,703
56,004 64,396
39,828 63,806
35,141
9,918
3,955
4,116
11,166
2,956
1,311
1,577
142

666,924
122,209
41,060
62,763
151,925
97,712
109,531
81,724

322,723 182,821
67,947 41,241
7,301
2,542
25,510 11,037
101,782 60,309
36,553 11,770
54,610 37,786
29,020 18,136

283,341
43,283
4,469
10,828
100,869
16,603
70,124
37,165

206,106
36,074
0
2,723
86,096
2,041
72,076
7,096

122,506
31,227'

52,043
0
0
0
24,674

•
74,491
17,974
14,979
8,733
12,957
5,216
4,396
8,495
1,741

48,600
15,910
6,826
3,953
8,711
3,498
3,337
5,749
616

45,947
9,423
4,729
§,083
4,349
3,523
4,086
9,210
5,044

28,478
6,999
2,455
814
9,022
889
2,321
5,057
921

66,382
12,376
12,899
4,128
11,986
6,101
6,741
11,524
1,127

91,712
20,435
11,348

28,973
12,559
9,019

, 73,541
28,904
14,329
35,308

71,970
18,899
15,541
37,530

^c«/j U!y4fc

139,471
29,062
12,606
97,803

185,845
34,664
19,003
132,176

•

P a c i f i c Coast
Washington
Oregon
California
UNITED STATES




16,540
8,769
5,003
2,768

27,616
10,701
7,863
9,054

8,762
8,141
32,151

o
9,378

o

o
6,320
40,975
4,134
29,663
10,187

174,017
0
0
0

17,868

°
156,149
0

53,361
0

o
0
0
53,361

°

Total

391,382
289,363
310,182
135,314
156,518
2,618,900
427,831
132,701
162,321
644,693
260,192
703,700
286,962

0
27,369
0

0
0
0
0
0
0
0
0
0

0
0
0
0
0
0
0
0
0

443,294
93,035
57,191
26,827
92,743
22,183
51,165
81,540
18,610

128,989
15,348
6,407
107,234

424 s 2 8 5
19,064
22,245
332,976

254,050
0
0
254,050

1,376,361
174,173
111,138
1,091,050

o

550,216 837,967 1,721,076 1,117,139 816,042 1,800,337 2,320,816 1,706,238 3,731,130 3,926,895 18,527,906

Table X - Distribution of the Aggregate Loans and Investments of Incorporated Banks in 1920 by Size of
Loans and Investments (Continued)
National Banks
S t a t e s by
geographic
divisions

Under
#150

New England
Maine
New Hampshire
Vermont
Massachusetts
Hhode I s l a n d
Connecticut

181

Middle A t l a n t i c
Hew York
New J e r s e y
Delaware
Pennsylvania
Maryland
D i s t . of C o l .

3,062
779
i
171
0
2,112
0

46
135
0
0

0

#150
to
250

$250
to
500

Loans and i n v e s t m e n t s by s i z e grouos ( in thousands of d o l l a r s )
$500
$750
$1,000
$2,000
$ 5 , 0 0 0 $10,000
$50,000
to
to
to
to
to
to
and
750
1,000
2,000
5,000
10,000
50,000
over

;

0

!

258,036
33,926
18,481
7,453
118,194
16,738
63,244

179,506
21,937
0
0
106,907
12,265
38,397

17,026 127,556 145,335 192,423
5,537 41,548 45,603 4 7 , 6 4 9
1,591 11,903 12,119 31,036
2,714
489
1,858 - 2,465
8,729 65,370 76,310 99,042
6,877
680
8,838 11,982
0
0
0
0

546,702
146,496
86,337
4,600
277,229
27,406
4,634

742,249
200,717
110,198
6,547
369,750
30,552
24,485

27,753 106,158 133,535 147,245
1,065
4,400 11,433
8,048
1,955
9,317 11,993 17,254
11,675 44,574 51,245 51,815
7,927 21,693 23,757 31,492
5,131 26,174 35,107 38,636

385,603
49,706
60,619
108,279
53,810
113,189

442,719
62,784
66,763
117,948
72,403
122,821

574,198 1,201,957 3 , 3 0 1 , 7 5 2
119,254
553,791j 2,871,667
129,803
89,845!
0
0
o!
o
273,041
415,667i
430,035
108,806!
0
30,216
33,848i
0
21,384
;
334,128
433,445! 1,018,728
41,120
86,370
66,600
103,332
58,880
0
64,704
697,295
121,193
39,736
77,963
o
129,630
217,689
131,681
172^346
261,365
o
0
0
46,938
73,007
122,814
0
21,383
62,269
0
0
30,468
76,282

5,663
120
716
2,672
635
1,520

S o u t h e r n Mountain
West V i r g i n i a
Virginia
Kentucky
Tennessee

1,267
217
396
309
345

7,426
2,063
2,709
1,635
1,019

53,547
14,491
14,766
13,730
10,560

51,985
9,179
17,422
14,835
10,549

57,303
13,018
20,014
13,803
10,468

130,219
32,390
35,130
40,808
21,891

110,760
20,163
39,948
29,354
21,295

Southeastern
North Carolina
South C a r o l i n a
Georgia
Florida
Alabama
Mississippi

1,054
99
264
141
93
457
0

6,696 31,555
721
4,137
354
6,976
1,403
6,753
2,853
957
9,168
3,261
1,668
0|

57,340
10,605
10,816
14,432
5,708
11,565
4,214

34,045
5,231
3,436
7,607
9,038
5,223
3,510

150,147
34,438
34,422
26,924
15,754
29,651
8,958

171,081
58,048
26,807
23,134
17,886
19,247
25,959

51,233
16,039
16,823
6,427
6,733
5,206
0

131,702
13,201
21,784
71,447
37,340
37,930
0

Total

364,053

135,946
24,785
15,220
21,222
53,936
0
20,783

24,093 36,566
4,237
5,960
6,500
6,242
2,337
8,345
6,369
9,772
672
641
3,978
5,60S

North Central
Michigan
Wisconsin
Illinois
Indiana
Ohio




204,024
0
0
0
123,108
24,579
56,337

38,433
4,370
4,975
6,843
17,059
3,568
1,618

4,228
718
1,032
430
1,663
167
213

|

o
0
364,053
0

0
0
0
0
0
0
0

1,245,066
95,933
52,450
46,676
801,201
58,630
190,176
6,852,260
4,033,041
473,003
18,673
2,017,335
225,357
34,851
3,084,977
331,646
330,879
1,271,400
329,416
821,636
846,218
138,509
326,206
198,626
182,877
684,903
142,569
121,687
158,268
96,362
121,708
44,309

Table X - D i s t r i b u t i o n of the Aggregate Loans and Investments of Incorporated Banks in 1920 by Size of
Loans and Investments (Continued)
National Banks
S t a t e s by
geographic
divisions

Under
$150

$250
to
500

$150
to
250

Loans and i n v e s t m e n t s by s i z e groups ( i n t h o u s a n d s of d o l l a r s )
$500
$750 | $1,000
$2,000
$5,000
$10,000
$50,000
to
to
to
to
and
to
to
750
5,000
10,000
50,000
over
1,000
2,000

Total

Southwestern
Louisiana
Texas
Arkansas
Oklahoma

8,941
511
4,175
796
3,459

30,692 124,381
1,044
1,130
14,205 67,082
3,155
6,801
12,288 49,368

73,451
4,891
40,554
8,478
19,528

129,830
5,775
81,252
9,562
33,241

226,687
20,260
126,284
30,778
49,365

111,298
18,973
56,909
0
35,416

336,607
63,891
223*723
0
48,993

0
0
C
0
0

1,136,220
118,773
667,216
68,188
282,043

afestern G r a i n
Minnesota
N o r t h Dakota
South Dakota
Iowa
Nebraska
Missouri
Kansas

5,421
871
1,172
589
446
261
394
1,688

38,308 201,484 193,677 122,438
5,881 48,044 39,495 26,183
9,237 26,506 16,002
5,017
2,433 16,853 13,890 19,897
5,235 4 1 , 1 8 9 47,767 38,487
2,936 23,593 33,676 16,450
3,855 13,834 16,352
5,958
8,731 31,465 26,495 10,446

273.807
59,485
17,349
24,762
82,706
28,299
17,856
43,350

220,721
50,214
5,037
12,980
64,105
21,134
37,483
29,768

154,853
25,494
5,303
5,461
27,846
27,677
47,365
15,702

481,606
124,291
0
0
76,880
66,512
201,202
12,721

317,177
128,291
0
0
0
0
188,886
0

2,009,492
508,249
85,628
96,865
384,661
220,538
533,185
180,366

Rocky Mountain
Montana
Idaho
looming
Colorado
New Mexico
Arizona
Utah
Uevada

7,278
4,123
863
358
895
596
101
342
0

15,209
6,315
1,518
969
3,591
2,185
204
427
0

43,970 46,797
10,268
7,366
7,671
8,851
5,283
2,619
14,437 15,166
3,917
4,588
312
4,101
2,440
1,445
637
1,666

38,334
6,585
7,894
3,368
14,399
3,507
0
1,655
926

87,608
11,383
16,813
11,861
29,887
5,733
6,397
4,241
1,293

145,088
37,158
16,722
19,224
16,508
9,473
15,060
21,501
9,442

73,111
5,652
12,031
7,317
19,914
6,241
0
21,956
0

79,980
0
0
0
79,980
0
0
0
0

0
0
0
0
0
0
0
0
0

537,375
88,850
72,363
50,999
194,777
36,240
26,175
54,007
13,964

P a c i f i c Coast
Washington
Oregon
California

1,810
145
253
1,412

8,664
878
1,555
6,231

46,126
8,694
9,520
27,912

43,780
6,695
14,572
22,513

133,368
23,790
18,224
91,354

132,986
25,236
17,983
89,767

114,420
34,873
0
79,547

403,717
91,096
80,488
232,133

227,284
0
0
227,284

1,150,550
200,030
150,570
799,950

34,677 156,002 751,139 805,694 747,452 1,973,230 2,450,327 1,765,143 3 , 6 3 4 , 4 0 3 5 , 2 2 8 , 9 9 4

17,547,061

UNITED STAT3S



38,395
8,623
7,975
21,797

1

94,333
2,298
53,032
8,618
30,385

Table XI - Distribution, of the Aggregate Loans and Investments of Incorporated Banks in 1930
by Size of Loans and Investments

States by
geographic
divisions

Under

$150

$150

to
250

New England
Maine
New Hampshire
Vermont
Massachusetts
Ehode Island
Connecticut

796

28

0
796

Middle Atlantic
New York
Hew Jersey
Delaware
Pennsylvania
Maryland
Dist. of Col.

194

11,125

North Central
Michigan
Wisconsin
Illinois
Indiana
Ohio
Southern Mountain
West Virginia
Virginia
Kentucky
Tennessee
Southeastern
North Carolina
South Carolina
Georgia
Florida
Alabama
Mississippi



1,407
217
0

175
219

120

o

m
2,75"? i 937
(32!
83.4
374
574 j
1,301; 5,693
665! 3,307
0;
0
58,834jl38,103
5,932, 16,427
9,506! 28,511
27,485 1 44,966
9,887j 29,031
6,024! 19,lb8

State Banks
Loans and investments by size groups (in thousands of dollars)
$250
$500
$50,000
$1,000
$2,000
$5,000
$10,000
$750
to
to
to
to
to
and
to
to
750
500
2.000
5.000
50,000
over
10.000
1,000
4,120
0
575
0
278
3,267

14.028 15,913
3,434 6,070
1,255
785
2,695
1.S29
1,278
2,701
988
0
3.540
5,366

64,536 82,426 90.010
9,668 23,621 23,560
7,676
6,759 15,500
2,439
896
3,860
32,538 37,376 40,560
10,289
8,638
9,391
1,926
856
1,409
352,004
55,540
89,118
93,446
53,660
6o,24o

!

35.681 50,949
95,910
16,872
5,978
1,785
7,822 11,086
23,378
11,308 19,3s?
34,801
14,766
20,859
14,496
45,787.
92,675
9,14?
16,927
9,937. 46,158
4,486
9,796
12!44V 11,033
16,320
12,845
4,903i 4,778
9.201; 8,312
11,992
5,471! 8,407 ; 24,795

303.319
49,499
74,312
77,224
46,287
55,997

226,756
52,505
54,422
51,768
24,720

43;34l
70,676
14,946 51,315
13.689
15,745 10,976
22,636 16,915
17.3%
9,735
70.171 52.637
11,0501 7,988
6,320 8,868
7,765
11,955
9,763
7,514
7,153
4,267
23,930 16,285

112,370
15,704
11,780
16,620
24,601

4,522
39,143

330,348
38,697
17,616
43,785
126,217
15,596
88,437

501.079 ,1.006.657
135,029 1 269,569
104,235
162,860
4,558
10,615
212,234
501,351
34!6f6
44,^32
10,347
17,630
712,376
575,324
122,039
132,153
102,087
70,315
156,244
277,875
86,804
S3,56l
108,150
148,472
121,750
41,559
28,256
39,936
11,999

110.810
33,417
37,278

35,231
4,884

95.660
18,930
8,263
18,072
11,240
11,724
27,431

79,808
22,175
12,691
15,897
6,762
7,129
15,154

285,704
28,408
14,826
18,060
157,199
0

67,211

596,743
77,721
0
0

314,713
39,577
164,732

Total

309.515
0
0
0
62,288
247.227
0

1.670,944

170,334
47,208
83,284
689,216
308,216
372,686

819.188 2.370,583 6.977.411 11.925,770
249,294
903,123 5,793,600 7,408,554
481,096
291,520 1,229,451
158,91?
8,544
0
85,649
117,509
685,347
765,029 2,621,221
158,984
127,262
3*+.956
432,800
27,683
56,384
116,235
0
525,884 1.151,898 2.591,739 6,636,237
477,647 1,419,224
85,487
421,995
0
21,302
27,982
477*555
208,312 1,293.743 2,493,853
262s790
418,138
51,801
0
32,387
4bl,222
104,504
820,349 1.827,467
0
77.l6o
221,125
835.376
0
19,458
25.625
173,329
48,914
193,850
0
10,395
32,972
291,477
28,289
0
176,720
63,6l4
0
19,018
70,319
13.553
6,198

29,521
6,4o4
0
14,643

123,800
79,276
34,126
0
0
15,398
0

0
0
0
0
0
0
0

68^,065
138,978
94,579
123,007
64,209
75,176
136,116

Table XI - Distribution of the Aggregate Loans and Investments of Incorporated Banks in 1930
by Size of Loans and Investments (Continued)

S t a t e s by
geographic
divisions

Under
$150

$150
to
250

S t a t e Banks
Loans and investment s by s i z e groups ( i n thousands of d o l l a r s )
$500
$250
$2,000 | $5,000
$50,000
^750
$1,000
$10,000
to
and
to
to
1
to
to
to
to
over
1,000
750
50.000
2,000
5.000 ! 10.000
500

Total

1

Southwestern
Louisiana
Texas
Arkansas
Oklahoma
E a s t e r n Grain
Minnesota
North Dakota
South Dakota
Iowa
Nebraska
Missouri
Kansas

61.779
4,090
29,212
13.119
15,353

52,288
5,170
22,767
10,069
l4,232

176,201 208,255
23,439 30,960
6,756
i4,744
11,395 l 4 , 4 9 5
22,797 46,335
24,46o 30,1^3
43,o4s 41,031
36,263 38,535

97,691
18,132
45,792:
17,355!
16,412;

59,803 38,774
U.723J 13.563
26,6151 10,312
15,355! 1 1 , 3 ^ 1
6,110|
3,55S

3S0,4641186,9191
74,778 46,017
9,539
2,163
22,090
4,789
102,522 54,456
52,240 12,675
71,541 46,232
47,754 20,587

64,738
26,509
15,981
15,^78
6,770 1

136.043
23,916
880

M35
51,079
8,528 i
29,685

189,528 ,
31,171
0
7,381
60,4l9
6,961
58,005
25,591

17,820
Rocky Mountain
Montana
Idaho
Wyoming
Colorado
Hew Mexico
Arizona
Utah
Nevada

l6,64i
3:965
2.485

P a c i f i c Coast
Washington
Oregon
California

12,6o4
!
6.9S2J 19,4o9
7,009
4,619
7,o46
1,0031
5,35^
1

UNITED STATES




0,^1

507
31s
710
325

21.733
5:321
5;%5
1,865
4,919
1,269
^55
3,44o 1
969

50,198
7,995
S,l64
6,152
io,34s
4,077
2,264
9,274
1,924

3l,6o4
6,696
3,590
2,806
5,4l4
3,217
1,82s
6,272
1,781

j

27,337
4,828
M91
2,627
lr7*K> i
0!
2,006 '•
8.5*3 i
3,402 i

40,299
7,602 '
6,505 .
6,073 !
3,089
0;
7,022 '
7,779 !
2,229 |

67,355!
29,843!
17,337!
13,280,
6,695'
!

185,508.
21,606
0
2,702
80,915
3,592
72,254

M39
77,632
8,748
11,297
2,307
11,852
2,532
18,715
12,837
9,344

65,022
23.536
24,011
17,425
0
80.477 ,
6,999
0!
0i
26,439
0
46,989 !
0!
l
41,779 j
16,283
01
01
0
01
5,364 1
20,132 j
0*

136.079
97,687
24,434
13.958
0

77.672
77,672
0
0
0

721,201
307,975
216,46l
127,380
69,385

173,580
40,651
0
0
47,386
0
8 5 , 5 ^ 31
0

259,318
0
0
0
0
0
259,318
0

68,001t
0:

0
0

0
10,035 :
01
13,458 1
44,508 i
0;
i
151.781|
23,743 i
01
128,033 1

0
0
0
0
0
0

I

0i

0

1.976,293
299,587
34,082
66,987
492,398 1
138,599 t
753,646 a
190,994
377,224
61,438
41,727
23,620
53,938
11,602
51,430
113,495
19,974

76,167 !
903,170 1,487.432
.84,729 1 113,197
25;116 !
0
139,088
17,467
14,936:
8,063!
0
66,470
11,306!
6,677
49,425;
903.170J 1,281,874
5 L 5 5 0i
S9,053
i
i
i
I
1+11,07s| 551 .JK7 1,192,6?1JS52,605 676,478 1,785,477 j 2 , 6 8 3 , 6 9 1 2 , o 4 i , 7 o o | 4 , 9 9 8 , 5 9 0 | 1 1 , 1 1 8 , 8 2 5 j 2 6 , 3 1 2 , 5 4 2
1
1.
*
—
— 1
i. ,
- i._.
55.073 33,659
22,232! 11,176
7,932, 8,967
24,9091 13,516

37,643 1
10,422 1
11,360 1
15.861 |
1

'

Table XI - Distribution of the Aggregate Loans end Investments of Incorporated Banks in 1930
by Size of Loans and Investments (Continued)
!

S t a t e s "by
geographic
divisions
New England
Maine
New Hampshire
Vermont
Massachusetts
Rhode I s l a n d
Connecticut
Middle A t l a n t i c
Hew Yox-k
New J e r s e y
Delaware
Pennsylvania
Maryland
D i s t . of C o l .
North Central
Michigan
Wisconsin
Illinois
Indiana
Ohio
S o u t h e r n Mountain
West V i r g i n i a
Virginia
Kentucky
Tennessee

_

•

"

—

j
i Under

j
i $1%
!
!

u*3

!
!
!

0
1+23
0

131
879
0
748
0
5,669
266

377
£.339
599

1,688

1,580
411 .
290 '
122 ,
757

Southeastern
North C a r o l i n a
South C a r o l i n a
Georgia
Florida
Alabama
Mississippi



1,576 ;
309 ,
163
123[
0

1

i

34,234 | 1 4 1 , 4 2 3 '
4 , 3 5 4 ! 17,218
l6,450
8,761
5,366 ! 21,45+1,
6,?46 ; 59,227?
1,824 !
7,183 ! 2 7 , 0 8 7 ;

327,305
62,064
3g'589
29,146
152,452
,4,782
48,272

1

139
;

Loans and
$150 j $250 ! $500
to 1
to 1
to
500 1 750
250 ;
!
27,330
802!
14,1411 4 , 5 3 5
0!
259!
0! 3.947 j 7- 323
193! 1,883! 4 , 3 5 1
01 5,148! 7,132
553
162!
Of
447 ' 2,904! 3.39b

1

705
0

;

National Banks
investments» "by s i z e tgroups ( i n thousands 3 of d o l l a r s )
$10,000 i $50,000
$750 j $1,000 j $2,000
| $5,000
to
to
i
and
to
!
to
j
!
to
50,000
over
1,000 | 2,000 j 5.000
i 10,000

1

981 •
0 !

89,991j 142,898 188,195 ! 661,342! 1 , 2 4 3 , 5 1 5 .
10,9blj 2 5 , 4 3 s ! 45,754 59,444 j 195,869'' 409,136
2,153;
1.233; 11,97sf 21,213 26,452 | 124,620; 239,322
1,731; 1.3Sb
3.933!
" 1 i
1.S13 !
11,570
M 1 2 ! 4 8 , 5 7 9 ' 6 9 . 0 3 1 9 1 , 6 6 1 i 298,920! 522,019
241' 2 , 2 6 5 ; 5,514
8,825 ; 3 6 , 3 7 6 :
49,287
12,181
0!
0;
0
°i
1,619;
530,586
21,103! 100,103j 93,265 .13JLI/J+ 1
44,509,
1.047T 6,439; 5.SU9 21,935 i 3o4,955ij
62,825
1,519! ,9,325! 10,543 12,795 !; 65,6So1
79,033
9=792; 4 0 , 3 ^ 0 , 35.196 50,490
104,070: 190,407
80,SbS
55,3951
5,357: 18,194! 15,779 I S , 7 b 4
32,790 ; 9 5 , 2 9 5 !
3.338| 2 5 , 7 % ;
117,453
25.898
4,259! 4 3 , 2 7 8 |
US,536 ; 146,4711
149,148
1,483! 9.870j 64,217
12,430
9,792 i 28,693i
34,732
$ 7 i | 11,385! 20,233 19,004 i U5.240!
63,333
3b,2?0
6171 13.0921 13,770 12,623 j 4 6 , 9 1 2 !
8 , 4 3 1 | 12,779
7,117 j 25,6261
1,2181
14,813

m

6,746i 2 4 , 0 0 7 ' 33,697
37l>
4,533
3,045
4501
2,462! 7.3061 7,965
1,123! 1,835, 6,659
2,340: 7*842! 10,249
0!
254' 1,246

34,156
2,479
1,777
6,701
4,206
11,293

7,7oo

I 114,995j
i 30,693,
t 10,244'
' 14,917!
| 22,1051
! 25,793!
; 11,2431

172.242
1+5,064
23,043
22,173
16,768
24,543
40,651

1

1 237,117
! Ul,463
|
8.173
!
5,900
j 92,376
! 30,010
i 58,595
! 839,705
j 274,0b4
! 146,346

i

,

°

1 356,955
! 33.23$
i 28,606
| 433,258
o4,oo/
i 137,945
i 57,554
! 94,500
i 108,993
!
!
;

4l+!625
7,U3
19,524

i

j
i
i
!
i

i
:

Total

48,630
19,676
0
0
15,632

°

13.272

726.076 1.962.414
453,2Sl!
11,600!
0
141,^+93
Oj
0
75,42b
0
0
68,280
313,952)
726,076 1,363,532
15,1521
0
53,983
260,600
112,577!
0
1
1 , 2 6 0 , 6 0 l | 4 . 5 8 2 . 5 1 3 9,020,600
400,008! 3,744,309 5 , 1 5 6 , 3 1 1
880,249
308,585!
0
0!
0
20,655
453,925!
779,153 2 , 6 2 8 , 1 0 3
209,96b
15,173!
59,051
125,316
82.910J
0

i

513,909; .1,082,383
6 s , 116;
226,627
45,557!
133.13S
98,74o;
633,405
102,570,
0
197,826|

84,213

25,979i
378.791J
101,918 ;
29,573!
161,321;

0
0
0
0
0

209,774!
0!
22,864!
11,937!
79,996:
94,9771

134,427
0
0
13^,427

oi

0
0

3,282,005
516,255
423,740
1,307,730
355.480
678,600
945,303
161,121
307,504
225,092
251,586
780.250
106,470
65,010
208,011
148,375
178,018

74,366

Table XI - Distribution of the Aggregate Loans and Investments of Incorporated Banks 4st 1930
by Size of Loans and Investments (Continued)

S t a t e s by
geographic
divisions
Southwestern
Louisiana
Texas
Arkansas
Oklahoma
western Grain
Minnesota
North Dakota
South Dakota
Iowa
Nebraska
Missouri
Kansas
Rocky Mountain
Montana
I daho
Wyoming
Colorado
Hew Mexico
Arizona
Utah
Hevada
P a c i f i c Coast
Washington
Oregon
California
OSTEBD STATES




Under
$150
l4,266
204
9,'267
856
3.939
9,137
851
1,468
i,0S5
1,593
720
1,071
2,349
2,924
1,252
3S0
l4b
785
361
0
0
0

$150
to
250

Loans and
$500
$250
to
to
750
500

2 a - -o^al Banks
L. t
i n v e s t m e n t s by s i z e groups ( i n thousands of d o l l a r s )
$1,000
$2,000
$5,ooo $10,000 $50,000
$750
to
and
to
to
to
to
1,000
50,000
over
5,000
10,000
2,000

37,734 101,197 6 6 , 0 5 1
1,984
3.022
623
20,262 61,817 42,013
2,704
6,370
6,435
14,145
15.619
29,938
42,050
107,107
6,o4o 149,843 26,718
34,005
6,834
6,593 11,532
7,558
3.505 11,331
6,009 27,842 24,728
6,430 24,78b 12,548
9,700 10,333
2,916
10,507 30,147 18,338

70,76s
3.565
44,057
3,164
19,982

93,827
7,000
55,117
7,602
24.10S

183,383
6,739
105,850
18,310
52,434

90,526
20,335
4,23s
8,672
20,452
9,200
13,173
i4,456

194,788
49,184
10,432
8,180
43,46s
25,197
14,527

258,490
56,349
20,54s
23,294
43,718
29,413
61,698
23,470

24,380
3,480
2,431
2,256
5,471
4,098
794
4,179
1,621

9,071
2,542
1,250
184
4,257
5S9
249
0
0

33,320
4,371
6,395
2,995
l4.o44
2,323
707
2,083
402

24,066
2,352
3.195
1,180
10,257
1,794
3,243
717
1,32s

8,002
1,724
2.S9S
3.330

33.811
9,364
8,96s
15,479

3S.372
7,960
9,481
20,931

3^051

38,500
58,402
11,255
7,653
c,077
25,989
1,520 1
1,331
1,717
2,860
104,994
31 .^36
19,273
54,285

100,996
26,743
6,467
18,467
18,422
12,165
3,239
4,783
10,710

153.937
0
122,255
20,473
11,209
154,397
28,522
5,760
0
52,267
7,953
41,467

Total

385,132
73.009
223,144
0
88,979

116,587
0
66,235
0
50,352

1,222,882
96,146
750,017
65,91^
310,805

309.624
53.853
0
0
38,784
77,501
113,618
25,868

372,093
228,713
0
0
0
0
143,380
0

1,683,055
504,570
67,405
64,125
263,361
193,798
411,933
182,363

113,385
12,398
0
0
100,987
0
0
0
0

0
0
0
0
0
0
0
0
0

443.945
73,121
34,313
3L305
187,568
23,867
26,705
45,145
16,921

13,428
78 J4 o i
7, 2 S
6,492
0
7,356
6,017
17,142
31,666
0

191.754 1.756.772 2.403.919
79,204
260,937
65,347
38,592
59,729
182,975
9,s4o
1,631,696 1,960,007
83S
84,976
73.958
17,926
12,135,241
L 4 O , 7 5 S 5S9.691 597,003
1,881,197
8,770,851 21,749,373
3S.163
3.112,596 1
3,816,251
1
. ... .
667,622
1,427
295
29U

12,287

146,931
38,751
23,204

81,803
14,569
10,696
56,538

Table XII - Distribution of Incorporated Banks in 1920 by Size of Town
State Banks
S t a t e s bygeographic
divisions

Under
500

500
to
1,000

1,000
to
2,500

Nisn h e r of ^ a n k s by s i z e of t o w n
2,500
10,000
25,000
50,000
5 s,000
to
to
to
to
to
25,000
50,000
100,000
5,000
10,000

100,000
and
over

Total

1
0
0
1
0
0
0

3
1
0
1
0
1
0

45
17
8
14
3
0
3

35
11
5
8
1
2
8

41
11
2
6
12
1
9

55
7
4
9
18
0
17

34
3
3
0
17
3
8

28
5
3
0
13
2
5

78
0
C
0
48
7
23

320
55
25
39
112
16
73

46
5
0
4
11
26
0

91
31
0
4
26
30
0

138
63
5
3
45
22
0

143
46
14
5
60
18
0

143
24
34
0
79
6
0

158
32
22
0
99
5
0

64
14
15
0
26
9
0

101
15
26
0
60
0
0

349
96
38
4
153
28
30

1,233
326
154
20
559
144
30

North Central
Michigan
Wisconsin
Illinois
Indiana
Ohio

889
111
307
245
120
106

760
118
199
195
125
123

659
126
126
178
121
108

330
51
68
92
67
52

235
44
29
67
48
47

218
27
26
55
61
49

164
28
38
42
25
31

70
9
4
14
35
8

296
27
20
129
23
97

3,621
541
817
1,017
625
621

Southern Mountain
West V i r g i n i a
Virginia
Kentucky
Tennessee

563
39
158
193
173

285
41
49
90
105

238
46
52
70
70

118
26
13
37
42

69
14
10
27
18

42
20
6
11
5

33
14
12
7
0

40
16
8
5
11

62
0
27
11
24

1,450
216
335
451
448

Southeastern
North Carolina
South Carolina
Georgia
Florida
Alabama
Mississippi

533
151
108
107
33
58
76

499
95
55
146
57
72
74

608
118
99
187
59
62
83

255
49
47
83
19
25
32

143
31
21
45
18
10
18

106
29
23
21
1
9
23

37
18
3
6
7
3

52
0
15
22
11
4
0

15
0
0
12
0
3
0

2,248
491
371
629
205
246
306

Hew E n g l a n d
Maine
Hew H a m p s h i r e
Vermont
Massachusetts
Rhode I s l a n d
Connecticut
Middle A t l a n t i c
New Y o r k
New J e r s e y
Delaware
Pennsylvania
Maryland
D i s t r i c t of C o l .




o

Table XII - Distribution of Incorporated Banks in 1920 Toy Size of Town (Continued)
S t a t e Banks
S t a t e s hy
geographic
divisions

Under

Southwestern
Louisiana
Texas
Arkansas
Oklahoma

726
58
253
139
276

Western G r a i n
Minnesota
N o r t h Dakota
South Dakota
Iowa
Nebraska
Missouri
Kansas

•

1,000
to
2,500

558
53
297
92
116

500

3,989
650
564
335
591
563
704
582

Number of banks by s i z e of town
5,000
25,000
50,000
2,500
10,000
to
to
to
to
to
5,000
10,000
50,000
100,000
25,000

500
to
1,000

467
41
236
83
107

226
41
85
49
51

106
14
42
19
31

74
10
35
8
21

17
3
11
1
2

18
0
3
8
7

39
9
30
0
0

2,231
229
992
399
611

1,376
184
83
119
302
198
288
202

969
140
40
68
204
154
236
127

368
47
12
7
99
39
98
66

211
42
5
16
47
28
43
25

177
28
13
3
48
9
31
45

41
0
0
4
23
0
14
0

82
10
0
0
22
7
13
30

200
76
0
0
18
10
79
17

7.413
1,177
717
552
1,008
1,511
1,094
1,054
278
141
111
255
75
67
104
23

100,000
and
over

Rocky Mountain
Montana
Idaho
looming
Colorado
New Mexico
Arizona
Utah
Nevada

446
160
55
58
134
26
6
5
2

166
44
38
8
30
10
16
16
4

207
38
20
31
37
16
13
42
10

95
9
13
5
15
15
16
19
3

55
11
11
6
6
6
10
5
0

38
13
4
3
6
2
2
4
4

17
3
0
0
7
0
4
3
0

0
0
0
0
0
0
0
0
0

199
104
68
27

153
57
39
57

168
55
24
89

108
17
17
74

75
15
11
49

55
13
7
35

21
4
0
17

23
4
0
19

103
34
19
50

UNITED STAT3S

7,392

3,891

3,499

1,678

1,078

923

428

414

1,172

lf<QU*b

30
0
0
0
20
0
0
10
0

P a c i f i c Coast
Washington
Oregon
California

Total




-

905
303
185
417
20,475

Table ZII - Distribution of Incorporated Banks in 1920 by Size of Town (Continued)
National Banks
S t a t e s by
geographic
divisions

Number of banks by s i z e of town
10,000
25,000
5,000
2,500
to
to
to
to
5,000
50,000
10,000
25,000

50,000
to
100,000

500

500
to
1,000

1,000
to
2,500

New England
Maine
New Hampshire
Vermont
Massac I i u s e t t s
Rhode I s l a n d
Connect i c u t

1
0
0
1
0
0
C

17
5
0
7
1
1
3

67
16
14
18
13
2
4

54
10
11
6
15
0
12

69
15
8
10
28
0
8

86
9
16
7
40
1
13

36
4
2
0
14
6
10

27
4
4
0
15
0
4

52
0
0
0
33
7
12

409
63
55
49
159
17
66

Middle A t l a n t i c
New York
New J e r s e y
Delaware
Pennsylvania
Maryland
D i s t . of C o l .

118
31
5
3
70
9
0

212
63
17
4
113
15
0

367
113
40 ,
7
184
23
0

311
90
50
2
154
15
0

181
34
36
0
104
7
0

188
56
24
0
104
4
0

72
29
12
0
26
5
0

54
13
9
0
32
0
0

177
62
19
3
64
14
15

1,680
491
212
19
851
92
15

87
4
38
22
22

178
3
20
72
34
49

328
26
31
130
61
80

205
17
31
75
40
42

209
26
24
60
35
64

157
15
21
41
30
50

82
13
13
25
12
19

49
5
3
16
14
11

72
6
4
23
6
33

1,367
112
151
480
254
370

S o u t h e r n Mountain
West V i r g i n i a
Virginia
Kentucky
Tennessee

42
13
17
5
7

59
13
24
11
11

144
41
45
41
17

120
24
29
36
31

56
8
17
20
11

37
13
11
8
5

17

21
4
6
3
8

23
0
11
4
8

519
122
165
134
98

Southeastern
North C a r o l i n a
South C a r o l i n a
Georgia
Florida
Alabama
Mississippi

11
2
3
0
0
6
0

32
2
10
6
4
10
0

122
16
19
30
15
36
6

96
26
15
20
12
18
5

69
14
16
14
10
10
5

72
20
9
12
3
14
14

22
7
5
3
3
4

16
0
5
4
6
1
0

6
0
0
4
0
2
0

446
87
82
93
53
101
30

North C e n t r a l
Michigan
Wisconsin
Illinois
Indiana
Ohio




Under

•

1

1

6

5
6
0

0

1

100,000
and
over

Total

Table XII - Distribution of Incorporated Banks ia 1920 by Size of Town (Continued)
National Banks
S t a t e s by
geographic
&iv i s i ons

Under

500

Number of banks by s i z e of town.
10,000
25,000
50,000
5,000
2,500
to
to
to
to
to
25,000
50,000 100,000
5,000 10,000

100,000
and
over

500

1,000

1,000
to
2,500

62
0
25
1
36

184
5
105
14
60

348
4
200
26
118

181
10
85
22
64

98
7
52
11
28

78
6
44
4
24

28
4
17
3
4

20
0
4
2
14

26
2
24
0
0

1,025
38
556
83
348

Western G r a i n
Minnesota
N o r t h Dakota
South Dakota
Iowa
Nebraska
Missouri
Kansas

215
42
59
25
38
21
5
25

352
78
56
34
84
37
16
47

480
108
44
44
96
70
43
75

203
44
7
13
59
19
16
45

136
25
7
14
37
22
14
17

97
17
8
3
21
6
12
30

19
0
0
3
12
0
4
0

28
4
0
0
8
4
4
8

49
13
0
0
3
9
22
2

1,579
331
181
136
358
188
136
249

Rocky Mountain
Montana
Idaho
Wyoming
Colorado
New Mexico
Arizona
Utah
Nevada

101
5?
7
3
22
11
0
1
0

69
25
9
2
25
4
0
4
0

141
30
29
21
34
14
4
4
5

78
6
14
6
25
11
6
7
3

53
12
14
6
12
3
4
2
0

48
13
8
9
9
4
3
0
2

15
2
0
0
6
0
3
4
0

0
0
0
0
0
0
0
0
0

14
0
0
0
8
0
0
6
0

519
145
81
47
141
47
20
28
10

P a c i f i c Coast
Washington
Oregon
California

32
5
8
19

61
10
15
36

134
27
29
78

90
17
15
58

56
5
12
39

40
8
6
26

17
4
0
13

15
1
0
14

35
10
5
20

480
87
90
303

UNITED STATES

669

2,131

1,338

927

803

308

230

454

8,024

Southwestern
Louisiana
Texas
Arkansas
Oklahoma




to

1,164

Total

Table XIII - Distribution of Incorporated Banks in 1930 by Size of Town

States by
geographic
divisions

"Under
500

New England
Maine
New Hampshire
Vermont
Massachusetts
Bho&e Island
Connecticut

1
0
0
1
0
0
0

Middle Atlantic
New York
New Jersey
Delaware
Pennsylvania
Maryland
Dist. of Col.

96
11
1

500
to
1,000

4
1
0
1
0
0
2
117:.

6

48
2
5

4o

4o

State Banks
Number of banks by size of town
5.000
25,00^
10 000
1,000 •• 2,500
to
to
to
to
to
5,000
50,000
2,500
10,000
25,000

202

53

11

IS

5
57

R




j

55
56

109
15

-

3o
0
58
0
0

5

0

0

643
132
121
174
103
118

299

215
41

201

169

39

17

?3

30

il
29

92
32
16
25
15

4o

4

206
40

2°
69

95
14
17
27

67

37

271
51
19
61
25

112
68
28
84
&

190
29
21
4l
28

45

55
63

S

8

296

15

0

73
14
25
0
27

0

Southeastern
North Carolina
South Carolina
Georgia
Florida
Alabama
Mississippi

73

0
85

0
11
1
2

0

249

31

l\

46
47

0
13
2
15

io4
5

489
28

66

21
1
17

167

Southern Mountain
West Virginia
Virginia
Kentucky
Tennessee

172
1^9

12
0
15

178

761
107
185
218
123
128

i4o

4
3

150

l4l
279
381
129
111

l,04l

North Central
Michigan
Wisconsin
Illinois
Indiana
Ohio

3
3

7

7
4
9

6

20
0

0

21

2
2
12

22
0

3S

l6

7

57

77
0
0
0
38
9
30

59

11
0

l6
8

1

100,000
and
over

45

47
13
10
14

5
7

50,00c
to
100,000

s
82
85

70

si
18
53
50

so
51

65

61
38
52

54

g

7

n

4l
11
12
15

28
10

5

3

3

85
18
18
18
17

61
11
2
15

24

7

6

6

12
16

0

60
16

7

11

6
9

6

I
5

26
2

316
92
51
11

137
is
27

Total

126

47
25
39
100

16
99
1,428

372
232

,32
632
133
27

197
38
31
182

3.821

77
69

603
627

54
0

1,255

600

773

1,220

179
278
419

0

17
16
21

379

15
13
11
10
0
1
0

19
0
0

1.115
262
133
315
152
215
258

9
20
10
0

Table XIII - Distribution of Incorporated Banks i n 1930 "by Size of Town (Continued)
State Banks
States by
geographic
divisions
Southwestern
Louisiana
Texas
Arkansas
Oklahoma
Western Grain
Minnesota
Worth Dakota
South Dakota
Iowa
Nebraska
Missouri
Kansas

Under
500

U83

3^
202
106
l46
2.427

393
1SS
172

500
to
1,000

1,000
to
2,500

325
28
163

324
51
1^5

69
65

64
64

910
134

648
95
20

39

A
81

339
476

50
209
126
203

U23

i4°

Rocky Mountain
Montana
Idaho
Wyoming
Colorado
Hew Mexico
Arizona
Utah
Nevada

17b
52
25
19
71
2
1

137
23
13

2

101
25
27
8
IS
6
7
4
6

Pacific Coast
Washington
Oregon
California

132
64
52
16

95
52
17
26

113
40
24

UNITED STATES

5,l46

2.S33

2,605




436

4

184
90

il

4
4
36
10

49

Sfumber of bancs by sizei of town
10,000
5,000
2,500
25,000
to
to
to
to
5,000
10,000
25,000
50,000

169
36
71
48
14

102
18

260

133
24

37

47
20
17

17

131
21
3
6
30
10
29
32

36
0
1
2
23
0

37

23

69
8
19
2
9
6
5
IS
2

51
6
8

22

16

4
4

3

5

2

12

4

6
7
5
2

48
13
11
24

42

1,344

^

19
5
9
2
3

21
14

45

100,000
and
over

47
8
19
12
8

0
7
84
24
71

3
3

50,000
to
100,000

l
0
4
3

6
4

0
0
3
1
6
3
0

7
9

13

26

17

14
2
2
10

900

801

415

^

5

Total

1,527

3
7
7

8
23
0

0

5

191
686
328
322

50
0
0
0
21
2
16
11

151

4,746

^3

747
254
277
97^
602

3
0
0
0
3
0
0
0
0

16
0
0
0
6
0
0
10
0

6
0
0

103

6

55

588
224
135
229

366

1,209

15,619'

0
0
9
6
63
30

33
15

1,093

799
591
121

96
59
150
26
30
84
25

Table XIII - Distribution of Incorporated Banks in 1930 " y Size of Town (Continued)
b
!

States • y
bgeographic
divisions

Under
500

500
to
1,000

Nei7 England
Maine
New Hampshire
Vermont
Massachusetts
Rhode Island
Connecticut

1
0
0
0
1
0
0

16

Middle Atlantic
New York
New JerseyDelaware
Pennsylvania
Maryland
Dist. of Col.

137

257

35

0.0

North Central
Michigan
Wisconsin
Illinois
Indiana
Ohio
Southern Mountain
West Virginia
Virginia
Kentucky
Tennessee
Southeastern
North Carolina
South Carolina
Georgia
Florida
Alabama
Mississippi



5
0

7
l
1
2

National Eanks
Camber of hanlcs by size of town
5,000
25,000
1,000
2,500
10,000
to
to
to
to
to
2,500
10,000
5,000
25,000
50,000

61
11
13
lb
11
1

9

52
10
12

60
13

6

a?
0

16
0
8

6

s

87
7
lb

37

7
44

0
17
2
10

0
11
0

27
23
0
23
5
0

61
12
17
0
32
0
0

33

1
12

312

211

9*

^7
7

50
2
151
15
0

47
56
0
103

0
103

5

5

0

0

276
28
31
109

175
23
28

145
23
17

59

207
23
28
68

4o
6s

2b

36

26

39

52

>+5

5b
12
21
10
13

136

96

36

16

24
30
28

79
18
19
23
19

0

17
2

73
10

73
11

2
0

2
2

5

6
15

0
2
0

1
10
0

i

8
0

80
1

,3

4o
18
18
41
10
23

5
3
4

l64
6
17
68
29

44

170
19
0

£
4i
24
8
22

4

^

12
24

65
13
7
15
15
12

3

4l
0
0
0
27

I

7<?

100,000
and
over

22

3
5

16s
125

27
2
125
13
0

50,000
to
100,000

213
62

*3

3^

9
17
2c
13
18

377

5?
%

5
9
166

k

152
10
62
1,803

64

556

29
2
52
7
12

297
lb

42

89

1.261

7
7

6
7

17

4l
15
20

126
155
462
210
308

7
4

•

9

20
0

13
3
6

27
6
8
11
2

2
2
0

5
3

76
15

19
2

24
11

5

5

11

2

2

6

5

0

21
18

0

6

5

0

9

Total

12

845
77
12

500
111
157
133
99

14
0
0
2
8

365
64

4

101

0

35
75
55
35

1$

Table XIII - Distribution of Incorporated Banks in 1930 "by Size of Town (Continued)

States bygeographic
divisions
Southwestern
Louisiana
Texas
Arkansas
Oklahoma
Western Grain
Minnesota
ITorth Dakota
South Dakota
Iowa
Eehraska
Missouri
Kansas
Rocky Mountain
Montana
Idaho
Wyoming
Colorado
Hew Mexico
Arizona
Utah
Nevada

Under
500

500
to
1,000

1,000
to
2,500

68
0

151
2

313

4s
0
20

95
i4
ko

190
20

173
26

270

346
73

37
24
27
24
6
29
12

l

?
1

11

22

6k
33

97

22
26
61

66

167
8

96
14
ks

1U5
3S
3
9
35
13
14

6

4

3

d
0

20
20

8
11
11
13
27

14
3

18

14

29

7

11

O

36
7
3

10

3

11

in
13
15
15

90
26
22

71
21
18

42
1,748

567

28
0

7
r

1

UNITED STATES

95
19

42

k

1,027

l

3
16

112
27
10

4S
5

3

19

2

20

85
14
10
11

5

24
14
3
5

51
l4
8
0
23

35

0

IS

5
65
9
37

74
4
^3
7

30
68

0
0
0

6
7

116

13
51

5
3
5
4

3

Pacific Coast
Washington
Oregon
California




57
30

6

National Banks
Burnt>er of hanks by size of town
25,000
2,500
10,000
50,000
5,000
to
to
to
to
to
25.000
50.000
5,000
100.000
10.000

4
14
4
4
3
0

2

4
12
2
0
0
2

4
3

0
0

4
2

4
l
0

0
0
21
0
0
0
8

4
4
5

278

62

1,252

35

263
112

0
0

3
r

95
24l

7

245

2
0
0
0
2
0
0
0
0

12
0
0
0
8
0
0

317

0

120
26
14
18
10

44
13

403
105

8

23

93
205

485

7,247

32

3
.3
1
23

13

13
0
0
13

1,139

931

806

331

213

2

969
31
593
67

171
125

21

6

37
1
26
0
10

Total

21

51
17
8
26

39

100,000
and
over

0

4

63
4i
25

Table XIV - Distribution of the Aggregate Leans and Investments of" Incorporated--Banks* on June 30, 1920 " y Size of Town
b

S t a t e s by
geographic
divisions
New England
Maine
New Hampshire
Vermont
Massachusetts
Ehode I s l a n d
Connecticut
Middle A t l a n t i c
New York
New J e r s e y
Delaware
Pennsylvania
Maryland
D i s t . of Col.
North Central
Michigan
Wisconsin
Illinois
Indiana
Ohio

Under

!
500
!
to
i 1,000

500

1
2,587 i
0
0
2,587
0j
!
1

°i

11,051
1,063;1
0!
966j
1,142
7,230|
Oj
204,830
25,662
62,057
74,022
21,691
21,398

1,000
to
2,500

1,026

State Banks
Loans and inves;tments by s i z e of town
| 2,500
5,000 |10,000 125,000
50,000
I ; to
to j to
! to
to
I 5,000 1 10,000 !25,000 150,000 100,000
( i n thousands of d o l l a r s )

35,243 j 30,895
10,770 12,167
6,939, ! 3 45a
l 4 , 1 0 b 1 8',864"
2,671 1
679
0 1 1,488

50s

9
376
0
142

4,238
!l38,966
86,834
4 0 , 6 3 1 S 44,742
757

°

35,848
12,026
0
2,452
4,032
6,076 26,812
15,294 11,945
0
0

1267,537 322,379
j ^5,123 73.900
1
7 3 . 0 7 9 ' 62,448
• 79,421 92,372
. 3 1 . 1 ^ 5 . 42,636
3 8 , 7 6 9 ' 51.023
1

b.05.497 124,305
; 2 2 , 1 5 1 29,645
! 6,325
865
i
0
0
I 57,950 56,838
1 3,893 17,459
| 15,178 19,498

Total

827,029 1,297,888
0
113,480
0
29,730
0
60,723
586,418
749,221
l48,8S9i
179,656
91.722J
165,078
i

j

1197,273 338,079 4 , 7 3 b , 4 b 8 i 6 , 0 6 0 , 0 6 8
! 58,495 73,020 3,303,197 3,641,880
570,896
253,576
J 63,014 125,496
I Hl.673
!
0
,49.794
1 13,107
29,237
0
! 58,188 139,563
937,558 1,496,392
| 52,613
• 17,576
1^0,959
13,831
219,165
Q
31,941
81,941
oj
oj
0
0
2,246,416 4 , 2 0 3 , 8 2 5 ( 1 )
'20b, 041 ; 200,885 |272,530 1300,620
187,587
1
3 5 , 7 1 2 : 50,263 j 51,176 ! 9 8 , 3 2 1 6 2 , 6 8 1
440,366 883,204
3,5^0
4 8 , 0 3 0 ! 23,3^0 25,100 ; 4o,4o9
90,563 428,566
!
999,6o4 1 , 5 3 7 , m * 1 )
54,179 i 52,243 64,756 i 85,497 35,017
50,024
3 4 , 2 4 4 ; 35,077 63,831 i 22,94o 6 1 , 3 ^ 8 ,
362,936
997,008
39,962 67,667 ! 53,453 2 5 , 0 0 1
665,859
33.876 |
706,828
55,361 37,539 ' 50,395 62,546! 185,921
63,580i 11,854 21,712 2 2 , 4 6 7 |
0
16,749!
153,555
33,936,
170,963
7,6i5!
3,310 17,489
6 , 3 9 3 ! 12,558
58,631
180,534
9,649 10,439! 4 , 4 7 5 !
3^,356
17,165j 20,545
2,868
201,776
92,434
23,273 | 10,404
l6,520|

Southern fountain
West V i r g i n i a
Virginia
Kentucky
Tennessee

92,263
9,779
29,801
34,091
18,592

66,725;
11,325:
13,463:
23,907!
18,030j

Southeastern
North Carolina
South C a r o l i n a
Georgia
Florida
Alabama
Mississippi
'

67,842
24,280
13,661
10,227
2,951
7,177
9,^46

95,744 j 192,983 133,796 Il34,888 102,634
24,377j 45,676 25,726) 24,633 30,585
13,478j 36,242 2 9 , 2 8 8 j 17,883 20,797
18,849 j 4o,59*+ 3 3 , 2 5 4 ! 27,657
9,028j 18,925
9 , 4 2 1 j 16,131
10,820 ! 17,071 15,885
9,320
19,192 ^4,475 20,,222! 39,264. 25,-7-13




92,498
25,733
21,703
25,407
19.&55

73,368 i 97,938
17,799 1 20,440
7,082 j 5,c6o
18,384 ! i6,4o6
13.531 i 3L134
0
7,785 !
i 24,858
8.787
192,487 h 2 3 , 0 6 2
3 4 , 9 2 5 ! 73•131
4 3 , 4 8 4 ; 62,239
0 i
0
97,073 1177,367
12,005 10,275

100,000
and
over

°l

83,288 i44,9S4J
58,846]
0!
4,541] 20,8331
92,447.
10,216i 17,975!
3,357! I3,729i
0!
01

43,165
0
0
22,950
0
20,215
0

'999,324
234,123
156,723
268,845
86,125
105,101
l4S,412

VJ-4

Table XI? - Distribution of the Aggregate Loans and Investments of Incorporated Banks in 1920 by Size of Town (Continued)
State Banks

I
States by
geographic
divisions
Southwestern
Louisiana
Texas
Arkansas
Oklahoma

Under
500

500
to
1,000

Lc>ans and investments by size of town
5,000
1,000
2,500
10,000
25,000
to
to
to
to
to
2,500
25,000
50,000
10,000
5:000
( i n thousands of d o l l a r s
149,832
107,120i 73,934
80,196 30,494
27.964 13,189
18,252
9,976
17,376
37.350 29,172
70,556
30,073 17,602
23.556 i4,44o
3L175
730
9,793
18,250
30,725
2,186
22,078
17,133

76,725
8,080
24,0l4
10,579
3^.052

95,774
14,472
45,142
15,755
20,405

Western Grain
Minnesota
North Dakota
South Dakota
Iowa
Nebraska
Missouri
Kansas

663,206
125,031
85,305
62,210
128,635
93.770
87,933
so,317

399,651
63,610
20,143
3S.735
107,708
58,089
65,657
45,709

Bocky Mountain
Montana
Idaho
Wyoming
Colorado
New Mexico
Arizona
Utah
Nevada

6l,4o9
25,973
s.996
6,263
14,597
3.^27
649
522
722

19,441
12,279
9.669
1,527
5,571
2,OS6
3.111
3.833
1,365

391,311
66,287
11,790
3^.H5
106,204
57,119
76,843
3S.953
71,554
12,728
8,432
10,487
10,790
4,463
3.968
13,836
6,850

P a c i f i c Coast
Washington
Oregon
California

36.526
16,262
11,711
S.553

48,715
13.139
9,452
26,124

89,274
23,512
10,617
55,145

UNITED STATES




199,595 122,747
27,443 25,071
5,316
1,797
5,330 10,250
65.317 33.^23
16,512 10,443
51,442 30,234
28,235 11,529

164,^80
25,020
8,350
1,745
65.687
5,815
24,510
33.253

62,813
0
0
10*436
37,3^6
0
15,031
0
31,702
5,490
0
^ 0
6,633
0
io,64o
6,93^
0

56,638
5.241
12,844
1,622
4,571
6,935
15,552
7,455
2,418

53.634
10,387
13.310
5,i4o
2,636
2,242
15,173
4,746
0

46,997
20,937
3.940
1,785
^.303
2,830
2,072
3.872

82,264
11,535
10,884
59,845

88,53b
10,557
9,590
68,389

72,753
77.568
14,471
4,351
9,108
0
53.989 68,402

50,000
to
100,000
46,801
0
5,826
29,286
11,639

230,506
180,059
50,447
0
0

Total
891.382
289,368
310,182
135,31^
156,518

118,364
5,474
0
0
52,428
7,153
15,582
37,727
0
0
0
0
0
0
0
0
0

496,833 2.618.900
89,895
427,831
132,701
0
162,821
0
644,693
47,9^5
260,192
11,291
703,700
336,463
286,962
11,239

89., 294
10,797
0

791.4*1 1.376.361
69,549
174,173
49,776
111,13s
672,106 1,091,050

7,255

1,191.951 1,032,975 l , 4 i 4 , 7 l o | 1,014,422 992,193 1,198,127 93^.593

100,000
and
over

78,497
1,111,960

81,919
0
0
0
41,637
0
0
40,282
0

443.294
93.035
57,191
26,827
92,743
22,183
51,165
8i,54o
18,610

9,636,975 18,527.906

Table XIV - Distribution of the Aggregate Loans and Investments of Incorporated Banks in 1920 " y Size of Town (Continued)
b

S t a t e s by
geographic
divisions

New England
Maine
New Hampshire
Vermont
Massachusetts
Ehode I s l a n d
Connecticut
Middle A t l a n t i c
New York
New J e r s e y
Delaware
Pennsylvania
Maryland
D i s t . of C o l .

Under
500
322
0
0
322
0
0
0

500 1
to
1,000

1,000 1
to
!
2,500 !

2,572
2,774
0
4,100
159
288
lr251

36,819
10,799
6,193
11,977
5,835
551
1,464
260,596
77,834
29,926
5,057
130,036
17,743
0

North Central
Michigan
Wisconsin
Illinois
Indiana
Ohio

45,669 101 ,223
12,4o4 27,836
3,6o9
lr^7S
1^65
1,004
24,893
8,680
5390
0
0
61.670
830
20,259
317
9,086
550
9,692 22,242
4,700 10,583
5,000 18,929

S o u t h e r n Mountain
West V i r g i n i a
Virginia
Kentucky
Tennessee

12,071
4,282
4,9^5
1.313
1,531

24,276
5,597
10,644
4,598
3.^37

80,906
19,796
28,965
23.332

Southeastern
North C a r o l i n a
South C a r o l i n a
Georgia
Florida
Alabama
Mississippi

2,752
645
277
0
0
1,230
0

10.079
740
4,266
1,716
865
2,492
0




186,841
17,74i
17,664
81,008
26,210
44..21S

National Banks
Loans and i n v e s t m e n t s by s i z e of town
50,000
5,000
10,000
2,500
25,000
to
to
to
to
to
25,000
5,000 l 10,000
50.000
100,000
( i n thousands of d o l l a r s>)

Total

761,235
0
0
0
606,196
48,702
106,337

1,245,066
95,933
52,450
46,676
801,201
58,630
190,176

81,854
12,317

243.681 4 , 9 4 9 , 2 1 2
70,853 3,474,280
189,977
44,022
>8,l44
128,80b 1,045,932
0
lUb,028
0
84,851

6,852,260
4,033,041
473,003
18,673
2,017,335
225,357
84,851

0
57,031
258.169
50,186
69,305
30,274
51,373

227,518 1,651,335
26,286
155,754
13,216
130,498
6f,?12 835,257
67,422
81,179
52,682
448^647

38,084
8,849
5,580
5,273
7,784
0

74,030
17,283
5,511
15,033
27,404
0

144,491
18,199
20,780
67,229
750

rssn

76,871
15,792
5,300
0
29,373
8,339

10,598

3,799

27,562

104,642
22,237
9,086
0
57,221
0
16,098

18,067

329,454
87,384
^9,352
3,003
W,722
1^,993
0

247,788
l50 3 6o4
448,220
43,800
49,825
55,6i4 1
1
,
0
0
l 4 o , 4 4 o i 236,019
7,93^
11,772
0
0
226,949
3L336
293,942
54,643
29,313
61,397
73.836
33,080
47,076
91,192
71,323

88,046
226,417
44 r 200

p

110*820
21,165
^1,153
27,121
21,381

70,466
10,059
24,919
21,820
13,668

82,478
30,025
26,226
17,801
8,426

69.54o
23.929
25,950
19 ,661
0

106.542
23,656
22,687
9,732
50,467

289,119
0
140,717
73.248
75,15^

3.084,977
331-646
330,879
1,271,400
329,4l6
821,636
846,218
138,509
326,206
198,626
182,877

78,086
23,726
10,319
1^,365
10,889
13,864
4,923

85,958
20 A H
23,95**
13,205
10,573
10,032
8,083

159,345

85.502
31,015
25,350
5,812
10,472
12,853
0

107.915
0
23,611
21,171
51,^87
11,666
0

93.635
0
0
64,612
0
29,023
0

684,903
142,569
121,687
158,268
96,362
121,708
44,309

156,294
15,156
25,723
50,251
28,892
38,272

8,813
69,593
l,6n
11,037
15,082
6,84g
15,737
3,320

100,000
and
over

56,739
22,273
22,305
5,234
24,811
27,983

Table XIV - Distribution of the Aggregate Loans and Investments of Incorporated Banks in 1920 " y Size of Town (Continued)
b

500

500
to
1,000

1,000
to
2,500

National Banks
Loans and i n v e s t m e n t s "by s i z e of town
5,000
25,000
10,000
2,500
to
to
to
to
25,000
10,000
5,000
50,000
( i n thousands of d o l l a r s0

11,680
0
4,506
47
7,127

45,487
999
26,374
3,237
14,877

145,598
1,627
89,863
11,242

110,476
7,109
55,^82
12,915

112,702
9,109
61,105
15,558

42,866

3^,970

26,930

Western Grain
Minnesota
N o r t h Dakota
South Dakota
Iowa
Nebraska
Missouri
Kansas

57,815
11,565
13.767
1M2
12,744
6,670
l,l64
4,423

118,698
32,688
18,957
13,645
36,169
18,680
5,065
13,1194

253,909
56,800
22,902
28,111
59,089
40,031
15,890
31,086

162,765
38,207
6,896
11,606
55,913
12,420
10,820
26,903

Rocky Mountain
Montana
Idaho
Wyoming
Colorado
New Mexico
Arizona
Utah
Nevada

17,845
8,578
1,^7

19.580
6,217
2,6l4
323
2,132
969
0
1,325
0

72,710
14,766
15,809
10,859
18,271
6,816
1,244
1,521
3,^24

22,901
4,073
6,oi4

76,528
15,245
16,595
44,688

S t a t e s by
geographic
divisions

Southwestern
Louisiana
Texas
Arkansas
Oklahoma

Under

>+22

5,525
1,812
0
4l
0

P a c i f i c Coast
Washington
Oregon
California

6,006
1,501
1,808
2,697




lib

432,4S6

Total

127,989
0
24,069
7,288
96,632

28-5,430
46,293
237,137
0
0

1,1^6.220
118,773
667,216
68,188
282,043

15,856

154,166
39,043
7,509
19,199
38,229
22,450
12,434
15,442

68,977
0
0
11,841
43,548
0
8,588
0

157,571
42,457
0
0
43,167
17,597
23,674
30,676

819,291
250,874
0
0
45,451
93,369
439,723
9,876

2.009.492
508,249
85,628
96,865
384,661
220,538
533,185
180,366

65,268
6,519
I2,l4l
4,340
19,3^9
10,569
5,216
3,^23
3,711

76.045
19,103
17,903
10,233
16,958
4,112
5,419
2,317
0

110,471
26,145
22,429
24,822
12,974
11,962
5,310
0
6,829

50,771
7,522
0
0
23,886
0
8,986
10,377
0

0
0
0
0
0
0
0
0
0

124.685
0
0
0
89,682
0
0
35,003
0

517,375
88,850
72,363
50,999
19^,777
36,24o
26,175
5^,007
13,964

80,552
15,283
12,773
52,496

82,211
7,444
21,014

79.513
21,584
9,877
48,072

52,115
12,429
0
39,686

76,721
12,525
0
64,198

671.959
109,946
82,489
481,524

1,150.550
200,030
150,570
799.950

53,775
1,175,518 1,133.799

MS

132,466
28,680
77,502
10,428

100,000
and
over

176,098
36,615
15,597
^,981
45,291
9,321
15,827
48,466

12,814
UNITED STATES

166,392
24,956
91,173
7,473
42,785

50,000
to
100,000

1,130,537

1,660,970 1,020,828 1,152,601 9 , 6 6 5 , 9 0 3 L7,5^7,061

Table XV - Distribution of the Aggregate Loans and Investments of Incorporated Banks in 1930 by Size of Town
State Banks
S t a t e s by :
geographic
divisions

Under
500.

BOO
to
1,000

New England
Maine
New Hampshire
Vermont
Massachusetts
Rhode I s l a n d
Connecticut

3,581
0
0
3,681
0
0
0

2,172
217
0
696
0
0
1,259

Middle A t l a n t i c
New York
New J e r s e y
Delaware
Pennsylvania
Maryland
D i s t . of C o l .

38,177
7,615
339
2,460
13,457
14,306
0

76,336
32,559
1,160
3,882
20,753
17,982
0

North C e n t r a l
Michigan
Wisconsin
Illinois
Indiana
Ohio

218,285 264,290
33,764 44,346
72,136 79,994
64,489 62,297
23,753 33,476
24,143 44,177

1,000
* to.
2,500

Loans and i n v e s t m e n t s by s i z e of town
5,000
25,000
10,000
2,500
to
to
to
to
10,000
25,000
5,000
50,000
i n thous&nids" of d o l l a r s )

50,000
to
100,000

100,000
and
over

Satal

13,412
20,815
6,790
1,454
4,596

56,663
15,710
8,334
10,586
3,828
5,401
12,804

92,650
21,101
0
24,319
22,985
0
24,246

182,241
34,038
13,967
23,287
63,531
12,988
34,430

183,690
39,317
. 10,725
0
67,469
8,010
58,169

149,548
46,976
770
0
91,037
29
10,736

940,357
0
0
0
433,576
280,334
226,447

1,670,944
170,334
47,208
83,284
689,216
308,216372,686

140,503
62,400
10,305
5,560
50,697
11,541
0

281,231
95,125
20,739
33,032
106,292
26,043
0

346,744
92,298
73,473
. 0
159,719
21,254
0

640,516
172,729
149,912
0
289,640
28,235
0

345,944
114,634
110,119
0
102,892
18,299
0

554,656 3,501,663
124,681 5,706,513
206,826
656,578
0
72 575
223,149 1,654^622
0
295,140
0
116,235

11,925,770
7,408,554
1,229,451
117,509
2,621,221
432,800
116,235

334,691
232,579
88,020
49,872
69,824
44,627
75,391
52,618
38,729
29,763
62,727 ' 55,699

204,927
48,488
21,044
47,972
30,011
57,412

297.601
81,693
35,350
69,346
47,568
63,644

378,300
65,497
42,889
115,617
44,800
109,497

260,1-94 1,445,370
866,633
140,911
89,907
21,784
7 0 , 7 6 1 L,935,362
22,156
147,882
4 , 5 8 2 L,405,586

6^636,237
1,419,224
477,555
2,493,853
418,138
1,827,467

60,042

12,$7fc

S o u t h e r n Mountain
West V i r g i n i a
Virginia
Kentucky
Tennessee

86,884
7,716
30,430
33,264
15,474

68,454
13,437
15,458
25,236
14,323

91,056
26,586
15,589
29,406
19,475

59,146
10,957
10,691
16,129
21,369

55,244
17,965
8,431
20,137
8,711

54,795
16,200
12,766
23,176
2,653

47,357
11,532
17,431
17,588
1,306

87,721
68,936
4,014
14,771
0

284.219
0
79,040
111,770
93,409

835,376
173,329
193,850
291,477
176,720

Southeastern
North C a r o l i n a
South C a r o l i n a
Georgia
Florida
Alabama
Mississippi

30,026
8*130
3,333
4,538
1,265
4,830
7,930

44,214
7,194
2,753
7,479
3,081
5,351
18,356

101,374
20,430
9,532
16,630
7,952
15,891
30,939

95,930
14,335
10,317
15,010
12,874
9,840
33,554

64,369
11,993
14,182
12,524
10,649
2,329
12,692

69.684
15,333
1,922
12,067
7,258
13,813
19,291

46,332
8,855
3,503
11,087
9,533
0
13,354

181,844
102,708
49,037
28,878
0
1,221
0

48,292
0
0
14,794
11,597
21,901
0

682,065
188,978
94,579
123,007
64,209
75,176
136,116




Table X - D i s t r i b u t i o n of the Aggregate Loans and Investments of Incorporated Banks in 1930 by Size of Town (Continued)
V
S t a t e Banks
S t a t e s by
geographic
divisions

Southwestern
Louisiana
Texas
Arkansas
Oklahoma
Western Grain
Minnesota
Worth Dakota
S o u t h Dakota
Iowa
Nebraska
Missouri
Kansas

1,000
to
2,500

L o a n s a n d i n v e s t m e n t s b y s i z e of town
25,000
10.000
5,000
2,600
to
to
tc
to
10,000
50,000
25,000
5,000
( i n t h o u s aj i d s o f d o l ! a r s )

51,413
8,701,
21,389
10,873
10,455

84,520
21,009
34,410
14,991
14,118

79,453
24,146
24,991
25,313
5,003

62,685
16,931
25,041
12,322
8,381

52,506
18,382
10,673
14,403
9,048

363,326 236,474
69,111 47,332
6,594
18,759
25,186 12,776
89,535 68,245
52,218 30,589
57,194 41,818
51,323 29,120

248,610
50,890
5,760
14,466
70,430
24,730
55,822
26,520

145,359
22,103
0
3,260
60,398
9,783
33,444
16,371

97,397
18,327
1,018
1,934
21,562
6,526
36,098
11,932

Under
500

42,903
4,949
16,246
7,273
14,435

500
to
1,000

50.000
to
100,000

100,000
and
over

Total

25,551
13,9l0
7,810
78
3,853

68,431
I3",i06
13,208
42,117
0

253,726
186,941
62,693
0
4,092

721,201
307,975
216,461
127,380
69,385

121,837
20,590
1,801
6,915
41,217
6,351
25,917
19,046

56,775
0
150
2,450
47,880
0
3,989
2,306

103,211
0
0
0
76,897
299
14,496
11,519

603,296
71,234
0
0
16,234
8,103
484,868
22,857

1,976,293
299,587
34,082
66,987
492,398
138,599
753,646
190,994

Rocky M o u n t a i n
Montana
Idaho
looming
Colorado
New M e x i c o
Arizona
Utah
Nevada

21,513
7,138
3,059
2,348
7,106
342
28
613
879

23,685
5,898
5,487
1,923
3,055
1,908
2,430
1,325
1,659

46,941
9,519
4,389
8,807
5,274
857
1,311
11,874
4,910

44,092
5,141
12,749
810
3,981
3,071
5,000
9,638
3,702

49,422
3,816
9,031
7,342
4,451
2,412
15,801
5,374
1,195

35,560
10,426
7,012
2,390
3,958
480
0
3,665
7,629

68,082
19,500
0
0
4,008
2,532
26,860
15,132
0

7,465
0
0
0
7,465
0
0
0
0

80,464
0
0
0
14,640
0
0
65,824
0

377,224
61,438
41,727
23,620
53,938
11,602
51,430
113,495
19,974

P a c i f i c Coast
Washington
Oregon
California

22,576
8,969
8,987
4,620

31,372
12,827
4,270
14,275

61,423
15,460
8,447
37,516

34,162
9,413
5,940
18,809

49,894
4,274
8,814
36,806

56,281
15,480
4,258
36,543

33,243
3,527
5,413
24,303

37,113
0
0
37,113

1,161,368
69,138
20,341
1,071,889

1,487,432
139,088
66,470
1,281,874

827,271 798,415 1,169,176 1,028,615 1,023,332

1,511,021

1,185,774

UNITED STATUS




1,450,183 17,318,755 26,312,542

Table XV - D i s t r i b u t i o n of t h e Aggregate Loans and Investments of I n c o r p o r a t e d Banks i n 1930 "by S i z e of Town (Continued)

S t a t e s "by
geographic
divisions

Under
500

500
to
1,000

1,000
to
2,500

N a t i o n a l Banks
Loans and i n v e s t m e n t s by s i z e of town
10,000
50,000
25,000
5,000
2,500
to
to
to
to
to
50,000
5,000
10,000
25,000
100,000
(in thou:sands of d o l l a r s )

100,000
and
over

Total

11,053
3,909
0
5,711
132
162
1,139

50,360
13,346
7,736
15,723
7,403
553
5,599-

61,308
23,385
10,011
7,272
12,010
0
8,630

93,389
26,988
3,856
20,703'
33,901
0
7,941

218,740
27,078
23,897
18,871
110,314
962
37,618

169,119
19,471
19,441
0
74,426
10,083
45,698

115,057
27,316
10,485
0
52,357
0
24,899

1,243,135
0
0
0
1,072,736
41,323
129,076

1,962,414
141,493
75,426
68,280
1,363,532
53,083
260,600

Kiddle Atlantic
Hew York
Hew J e r s e y
Delaware
Pennsylvania
Maryland
D i s t . of C o l .

73,706 175,414
20,378 63,072
2,351 18,195
1,598
805
41,300 81,639
7,579 11,703
0
0

377,044
134,914
52,880
6,682
161,765
20,803
0

497,202
170,145
73,333
5,833
224,992
22,894
0

449,544
109,244
114,748
0
219,573
5,979
0

752,136
253,304
128,505
0
350,438
19,889
0

343,665
127,839
92,801
0
103,897
19,129
0

424,885
124,903
103,913
0
196,069
0
0

5,927,003
4,152,512
293,023
5,732
1,248,430
101,990
125,316

9,020,600
5,156,311
880,249
20,655
2,628,103
209,966
125,316

North C e n t r a l
Michigan
Wisconsin
Illinois
Indiana
Ohio

13,029
367
451
9,353
.3,992
3,866

54,980
2,134
7,375
21,040
7,735
16,696

162,213
21,387
18,500
65,730
17,866
38,730

171,174
24,566
30,096
50,359
20,949
45,204

262,027
36,295
43,405
81,743
35,263
65,316

309,005
49,893
42,418
74,943
46,559
95,192

335,845
61,496
70,335
96,378
41,665
65,971

228,711
66,779
40,219
74,796
24,426
22,491

1,740,021
253,338
170,941
833,383
157,025
325,334

3,282,005
516,255
423,740
1,307,730
355,430
678,800

Southern Mountain
West V i r g i n i a
Virginia
Kentucky
Tennessee

15,635
3,575
1
9,720
1,987
353

24,829
5,042
11,445
4,686
3,656

83,642
24,100
35,859
25,715
7,968

85,488
13,403
25,772
26,723
19,590

100,710
24,530
27,460
28,574
20,146

92,520
24,006
44,280
12,433
11,801

105,946
25,575
40,409
35,015
4,947

74,237
40,890
22,814
10,533
0

352,296
0
89,745
79,426
183,125

945,303
161,121
307,504
225,092
251,586

Southeastern
Horth Carolina
South C a r o l i n a
Georgia
Florida
Alabama
Mississippi

537
0
275
0
0
262
0

4,107
569
780
496
215
2,047
0

31,678
3,763
2,553
8,096
3,926
9,560
3,780

46,751
10,246
2,535
8,140
7,852
14,899
3,079

69,645
16,250
7,140
12,122
16,928
12,324
4,881

148,661
28,815
8,770
19,587
9,504
36,478
45,507

60,158
13,524
13,281
3,337
12,897
0
17,119

175,654
33,303
29,676
66,294
0
46,381
0

243,059
0
0
89,939
97,053
56,067
0

780,250
106,470
65,010
208,011
148,375
178,018
74,366

Hew England
Maine
Hew Hampshire
Vermont
Massachusetts
Rhode I s l a n d
Connecticut




253

0
0
0
253
0
0

Table XV - D i s t r i b u t i o n of t a e Aggregate Loans and I n v e s t m e n t s of I n c o r p o r a t e d Banks i n 1930 by S i z e of Town (Continued)
n a t i o n a l Banks
S t a t e s "by
geographic
divisions

Loans and i n v e s t m e n t s by .s i z e of town
5,000
10,000
25,000
50,000
2,500
to
to
to
to
to
5,000
10,000
100,000
25,000
50,000
(in thous.ands of d o l l a r s )

500
to
1,000

1,000
to
2,500

9,658
0
6,760
0
2,898

29,265
365
18,090
3,161
7,649

99,760
1,843
63,170
6,787
27,955

87,111
6,136
49,468
7,543
23,914

110,239
3,164
63,464
10,335
33,326

147,622
15,936
72,976
20,421
38,289

83,556
6,738
48,681
17,667
15,470

110,302
30,035
80,267

540,319
31,874
347,141

0
0

161,304

37,225
7,153
7,019
5,298
6,553
5,445
949
4,808

36,296

166,264
36,566
9,575
13,332
34,676
34,593
10,330
26,692

103,470
27,191
2,345
7,946
29,199
3,922
7,684
20,183

122,205
32,343
13,555
4,176
21,082
14,303
19,328
17,418

182,509
49,615
14,077
15,899
23,699
17,742
19,329
42,143

80,625

105,221

0

0
0
0

Rocjsy M o u n t a i n
Montana
Idaho
".yyoaing
Colorado
Hew M e x i c o
Arizona
Utah
Hevada

5,041
1,324
558
146
2,059
454
0
0
0

15,467
3,675
2,117

45,444
9,337
4,397
7,102
16,503
3,201
1,227

55,964
12,236
8,826
7,793
" 12,399
5,393
5,820
3,447

74,375
19,147
9,742
11,466
19,164
6,285

66,911
22,994

0
0

11,243
9,010
17,936
5,728

0

3,571

0

P a c i f i c Coast
?/ashington
Oregon
California

7,808
1,847
1,437
4,474

53,734
1,884
21,351
30,549

93,772
38,679
14,766
40,327

65,367
22,263
4,221
38,883

Sottthwestem
Loui s i a n a
Texas
Arkansas
Oklahoma
Western Grain
Minnesota
North Dakota
South Dakota
Iowa
Nebraska
Missouri
Kansas

UNITED STATES




Under
500

&fZrf

£j%tlj

9,411
7,339
21,741
9,619
o 9 {L&K.

12,664

1,733

377

619

3,250

37,134
3,303
8,673
4,793
6,706
3,857
1,722
3,139
4,481

17,915.
5,823
5,234
6,858

47,787
13,024
9,584
25,179

56,112
18,896
14,526
22,690

0

6,656
667
0

1 6 7 , 8 9 2 419,326 1,074,192 1,145,800

11,423
9,635
33,271
0

17,025
4,271

o
0

100,000
and
over

0

804,240
329,403
0
0

49,698
23,766
16,685
15,072

38,942
79,408
317,380
39,107

12,659

130,900

0
0
0

0
0
0

12,659

100,179

0
0
0
0

6-2,102
0
0

62,102

Total

1,222,882
96,146
750,017
65,914
310,805
1,638,055
504,570
67,405
64,125
263,861
193,798
411,933
132,363

0

443,945
73,121
34,313
31,305
18.7,568
2S\867
26,705
45,145
16,921

1,999,272
158,521
111,806
1,728,945

2,403,919
260,937
182,975
1,960,007

0"
0^

30,721

1,317,557 2,019,340 1,316,193 1,308,828 12,980,245 21,749,373
i..




•

- 1^5 -

Tables XVI, XVII, and XVIII, giving by States the
changes in (l) State hanks, (2) national hanks, and (3) State
and national banks comhined are to he inserted here and will
occupy ahout 75 printed pages. These tables have been prepared
and will be furnished to the printer by the Committee.

- lUb -

Table XEX - Number of Primary Bank Organizations i n the United S t a t e s , 1921-1931
by Size of Capital Stock
S i z e group
capital stock

1921 1922 1923 1924 1925 1926 1927 1928 1929 1930 1931 T o t a l
S t a t e •banks>

Under $25,000
25,000 - 50,000
50,000 - 100,000
100,000 - 200,000
200,000 - 1,000,000
1,000,000 and over
Total

100
110
52
65
31
4

71
69
104 112
62
35
66
69
22
31
4
——

362

334

361

74
97
49
54
27
1

70
68
59
55
29
2

37
63
43
52
35
7

27
67
37
36
38
._!

25
71
28
35
21
2

29
53
21
22
33
5

26
38
22
13
12
7

302

283

23?

rilO

182

163

118

17
40
18
8
6
1

545
823
476
475
285
38

90 2.642

N a t i o n a l "banks
Under $25,000
25,000 - 50,000
50,000 - 100,000
100,000 - 200,000
200,000 - 1,000,000
1,000,000 and over
Total

48
32
20
9
1

35
20
7
10
1

23
30
15
22
5

35
17
11
14

40
34
25
19
2

26
27
20
31
3

15
27
17
25
1

12
14
21
17
4

8
18
19
18
8

9
5
9
7
2

3
6
5
1

254
230
169
173
31

110

73

95

81

120

107

85

68

71

32

15

857

545
17
43 1,077
24
706
644
13
7
458
69
1

S t a t e and n a t i o n a l. banks
•

Under $25,000
25,000 - 50,000
50,000 - 100,000
100,000 - 200,000
200,000 ~ 1,000,000
1,000,000 and over
Total




69
135
115
84
44
9

74
132
66
65
41
5

70
108
93
80
48
4

37
89
70
72
66
10

27
82
64
53
63
6

25
83
42
56
38
6

29
61
39
41
51
13

26
47
27
22
19

—*

71
139
82
7S
41
1

472

407

456

383

403

344

295

250

234

150

100
158
84
85
40

Q

105 3,499

- li*7 -

Table X - ITumber of Primary Bank Organizations in the United S t a t e s , 1921-1931
X
by Size of Town
P o p u l a t i o n of town

1921 1922 1923 1924 1925 1926 11927 11928 1929 1930 1931 T o t a l
S t a t e banks

Under 1,000
1,000 - 5,000
6,000 - 10,000
10,000 - 100,000
100,000 and over
Total

144
80
24
47
67

111
74
27
54
68

105
109
27
49
71

101
81
18
38
64

82
74
24
55
48

59
61
57
62
13
16
5 c : 30
5 3 ! ,_46

59
55
11
23
34

49
46
9
17
42

42
30
11
7
28

362

334

361

302

283

237! 210

182

163

118

28
35
10
10
7

841
703
190
380
528

90 2.642

N a t i o n a l banks
Under 1,000
1,000 - 5,000
5,000 - 10.000
10,000 - 100,000
100,000 and over

33
50
8
8
11

20
30
6
8
9

18
39
4
9
25

15
35
7
8
16

22
33
7
18
27

14
30
6
11
24

16
17
8
9
18

5
23
10
7
26

5
10
5
7
5

1
8
3
1
2

177
315
80
107
178

120! 107

85

58

71

32

15

857

0*k

29 1,018
43 1,018
270
13
487
11
9
706
105 3,499

281
40
161
21!
151
l

Total

110

73

95

81

St£ite and national . banl:s
Under 1,000
1,000 - 5,000
5,000 - 10,000
10,000 - 100,000
100,000 and over




Total

177
130
32
55
78

131
104
33
62
77

123
1,48
31
58
96

472

407

456

116
116
25
46
80
383
I

110|
114 i
40 i
76!
531
403

81
95
20
68
80

75
87
22
41
70

75
72
19
32
52

69
19
24
68

47
40
16
14
33

344

295

250

234

150




- ll+g

APPEHPIX B
Digest of State Laws Relating to Private Banks or Bankers

- Mf -

X-6812

DIGEST OF STATE LAWS RELATING TO
PRIVATE BAHKS OR BANKERS.

The following is a digest of the laws of the several
States, as of February 15, 1931, having reference to the
organization and operation of private "banks or hankers, which
was prepared in the office of the General Counsel to the
Federal Reserve Board with the assistance of the Counsel for
the various Federal reserve tanks.
Only the provisions of State laws pertaining to the
organization and operation of private hanks or hankers and the
nature and scope of the supervision of them exercised by the
State banking authorities have been covered in the digest; and
no attempt has been made to digest in detail any provisions pertaining to liquidation. The laws of some States require private
banks or bankers to conduct their business in accordance with
the provisions covering incorporated banks. In such cases, this
general requirement has been digested, but no attempt has been
made to digest the provisions covering incorporated banks.
In preparing this digest, it has been assumed that the
terms "private bank" and "private banker" are generally understood to embrace all persons, firms, partnerships, associations
or other organizations engaged in one or more of the generally
recognized phases of the banking business without being incorporated. Where, however, the term "private bank" or "private
banker" is defined in the State laws, such definition is summarized in the digest.




u 1 -

ALA3JUA.
Private banks subject to same general provisions as incorporated
banks and to certain additional snecific provisions.
The laws of this State create a banking department which is
"charged with the execution of all laws relating to *** individuals
doing "or carrying on a banking business in the State of Alabama."
The laws also provide that "The word 'bank' as herein used means any
person, firm, partnership or corporation doing or carrying on a banking business, * * *, unless used in such connection and so as to express a different meaning", indicating that so-called private bankers
are subject to the same general provisions as are made applicable to
incorporated banks. (Civil Code, Sec. 6275; Banking Laws, 1928, sec.
6275, p. 3). In addition, the lavs also contain provisions specifically covering the organization, operation and liquidation of private
bankers, and these provisions are set forth below.
Organization; notice of intention to commence business: publication of.
"Ho individual or individuals or partnership shall commence
the carrying on of the banking business without first giving notice
of intention to organize and carry on such business by publication
at least once a week for four successive weeks in a newspaper to be
designated by the superintendent of banks published in the city or
town or county where such bank is proposed to be located. Such notice
shall specify the name or names of the individual or individuals proposed to i e interested in such bank, what interest each will have, the
;
amount of the capital proposed to be used in the proposed banking
business, the name under which and the place whore the business rill
be carried on, and the bona fido cash value of the assets and property
of each individual to be interested in the bank, over and above all indebtedness. Copy of such published notice * * * shall be made and filed with the superintendent of banks." (Civil Code, soc. 6349; Banking
Laws, 1928, sec. 6349, p. 24.)
Investigation by superintendent of banks.
"The superintendent of banks shall investigate and ascertain
whether the character and general fitness of the individuals named, are
such as to command the confidence of-the community in which said bank
is proposed to be located, and that there is public necessity for said
bank, and sufficient business to suroort the same in said community,
the same as is required preliminary to the incorporation of a bank under the provisions of this article." If, after such investigation, the
superintendent is of the opinion that the facts do not warrant the
establishment of such bank, "he shall issue under his hand and official
seal, in duplicate, a refusal to permit the individuals proposed to be
interested in the proposed bank from operating the bank, and shall ****
transmit to the probate judge of the county in which the bank is proposed




-/X7-

to be located and do "business, one of the duplicates of his refusal,
which the probate judge shall file rnd record in his office, and the
other duplicate of his refusal the superintendent shall file in his
office." (Civil Code, sec. 6350; Banking Laws, 1928, sec. 6350, p.
24.)
Application for permit to cc-mence business.
"Before any *** individual hanker shall transact any "business
as a bank, such *** individual shall file "dth the superintendent request for a permit to commence business*'' (Civil Code, sec* 3351;
Banking Laws* 1928, sec* 5551j pi 24*J
Written approval of superintendent of banks required.
"No *** individual or individuals shall transact any business
as a bank in this State other than such as relates to the formation of
such bank without the written approval of the superintendent of banks
and without M s written certificate stating that such *** individual
banker has complied with all the requirements of lav; and is authorized
to transact business within this State as a bank and that such business
can be safely entrusted to it, which certificate shall, be recorded in
the office of the superintendent in a book to be kept by him for that
purpose, and a certified copy thereof under the hand and official seal
of the superintendent shall be filed and recorded in the office of the
probate judge of the county wherein the *** individual is to have its,
his or their principal nlace of business, at the expense of the bank".
(Civil Code, sec. 6352;"Banking Laws, 1928, sec. 6352, p. 25.)
Examination by superintendent as to payment of capital.
"The superintendent shall, before issuing his permit to any ***
individual banker to commence business, examine or cause an examination
to be made in order to ascertain whether the requisite capital of such
bank has been paid in in cash. The superintendent shall not authorize
such *** individual banker to commence business unless it appears to
his satisfaction from such examination, or other evidence satisfactory
to him, that the requisite capital has, in good faith, been subscribed,
and paid in cash." (Civil Code, sec. £353; Banking Laws, 1928, sec.
6353, p. 25.)
Transacting business without permit; penalty.
"Any person who shall hereafter, transact any business as an officer or agent *** of an individual banker hereafter commencing business,
before such *** individual banker is authorized to transact business as a
bank by the permit of the superintendent of banks, shall be guilty of a
misdemeanor and, upon conviction, shall be fined not less than one hundred
nor more than one thousand dollars." (Criminal Code, sec. 3400; Banking
Laws, 1928, sec. 3400, p. 63.)




- / J--2

^.3—.

X-3812"

Individual may appeal from decision of superincaiideat refusing permit.
Aii individual may appeal to the State Banking Board and a court
of competent jurisdiction from a decision refusing him the right to establish an individual "bank, (Civil Code, sec. 6356; Banking Laws, 1928,
sec. 6356, p. 25.)
Annual assessments for expenses of "banking department.
Each private "banker on the call of the superintendent of hanks,
is required to pay a certain amount into the treasury of the State, "between the first day of January and the first day of April of each year,
or at such other time as the superintendent may designate, to be used
as an aid in defraying the expenses of the "banking department. (Civil
Code, sec. 6287; Banking Laws, 1S28, soc. S387, p. C). Each hank failing to pay this assessment "shall forfeit to tue State five ($5.00) dollars for each day after it is (in) default, ***». (C.v'il Code, sec.
5288; Banking laws, 1928, sec. 5288, p. 7).
Hxaminations; number and :iature of.
"The superintendent of "banks shall either personally, or by competent examiner appointed " y him, visit and oxamine *** every individual
b
"banker doing a hanking business, in and under the laws of the State of
Alabama, at least twice in each year. On every such examination, inquiry
shall be made as to the condition and resources of tho corporation (or
the individual or individuals in case of individual bankers), the mode
of conducting and managing the affairs of the bank, ***, the investment
of the funds of the bank, tho safety and prudence of the management of
the bank, and whether the requirements of its charter and of law have
been complied with in the administration of tho affairs of the bank,
and as to such other matters as tho superintendent' of banks may proscribe.
In addition, tho superintendent of banks shall in like manner examine or
cauae to be examined into the affairs of overy *** individual banker doing a banking business whenever in the judgment of tho superintendent
the management and condition of tho bank is such as to render an examination of its affairs necessary or expedient, or whenever in the opinion of the superintendent the interest of the rrablic demands an examination*" (Civil Code, sec. 6289; Banking Laws, 1928, soc. 6289, pp. 7 and
8).
Reserve requirements.

"!To bank, firm, person or corporation doing a banking business
s h a l l reduce, or bo allowed to reduce the cash of tho bank >v hand below fifteen per cent of domand deposits, provided that throo-fifths of
said fifteen per cent reserve may consist of tho balance duo by banks
and bankers to said bonk '?rhen payaole on demand." (Civil Code, sec.
6537; Banking Laws, 1928, sec. 6337, p . 19).




— / £~3

-

x-ooia-

Failure of private banker to pay over money on demand.
Any private banker who sells or disposes of property for
another> and refuses for three days after demand made by the person
entitled to make such demand or'his agent or attorney, to pay the
amount to which such person is entitled, must on conviction, be
fined not more than one thousand dollars, and may also " e imprisoned
b
in the county jail, or sentenced to hard labor for the county for
not more than six months. (Code of Alabama, 1923,- sec. 3976.)




Impairment of. capita.lt po'Ter and duty of superintendent.
"Tnenever the superintendent or? banks shall, have reason to "believe
that the *** c a p i t a l of any individual "banker i s reduced "by iffipairae.it or
otherwise "below the amount of i t s paid-up capital stock, he s h a l l require
such *** individual banker to 'make good the d e f i c i t within t h i r t y days
a f t e r the date of the requirement by him, which requirement s h a l l be in
w r i t i n g . The superintendent may examine or cause to be examined into the
a f f a i r s of any such bank to a s c e r t a i n the amount of such impairment or
reduction of capital and whether the deficiency has been made good as r e quired by him". (Civil Code, s e c . 6297; Banking Laws, 1928, sec. 5297,
p. 9).
Superintendent must request correction of unsafe p r a c t i c o s .
"The superintendent of banks s h a l l submit to the *** governing
body of any individual banker, and request a correction of any matter
i n the conduct of the a f f a i r s of the bank which, in h i s opinion, "is uns a f e . " (Civil Code, soc. 6298; Banking Laws, 1928, soc. 6298, p . 9 ) .
Unsafe or unsound condition or other matters of default or misconduct:
superintendent may take possession.
"Fnenever i t s h a l l appear to the superintendent of banks that
any *** individual banker has v i o l a t e d i t s charter or any Ian of the
S t a t e , or i s conducting business in any unauthorized manner, or i f
the capital of *** any individual banker i s impaired and not made good
under the requirement of the superintendent within the required time,
or i f any such *** individual banker shall refuse to submit i t s papers,
books and concerns to the inspection of the superintendent or any exami n e r , or i f any officer thoreof s h a l l refuse to be examined on oath
touching the conduct of any such *** individual banker or i f any audi
*** individual banker shall suspend payment of i t s obligations or i f
from any examination the superintendent shall have reason to conclude
that such *** individual banker i s in an unsound or unsafe condition
to transact the business for ,:- hich i t was organized, or that i t i s un*»
safe for i t to continue business, or i f any such *** individual banker s h a l l neglect or refuse to observe any order of the superintendent
d i r e c t i n g or requiring the doing of any imrticular thing required to
be done by law, the superintendent may call a meeting of the banking
board and submit to said board matters of default or misconduct in
the a f f a i r s of the banks of which the bank s h a l l have notice and upon which the bank may be heard in person or by counsel, and i f said
board or a majority of said board, so d i r e c t s , the superintendent
s h a l l forthwith take possession of the property and business of such
*** individual banker and r e t a i n such possession u n t i l such ***
individual banker s h a l l resume business or i t s a f f a i r s be f i n a l l y
l i q u i d a t e d , as herein provided". (Civil Code, sec. 6299; Banking
Laws, 1923, sec. 6299, pp. 9 and 10).




Superintendent not to take charge of individual banker unloss directed
to do so by "banking board.
"The superintendent of banks shall not take possession of the
property and business of any bank under the irovisions of this article
unless *** directed so to do by the banking board. On taking possessLoruaf. the property and business of any such *** individual banker,
the superintendent shall give notice of such fact to all banks and other
parties or corporations holding or in possession of any assets of such
*** individual banker." (Civil Code, sec. 5303; 3a:iking Laws, 1928,
sec. 6303, p. 11).
" T e business may be resumed.
.hn
. "After the superintendent has taken possession of *** (the)
business of an individual banker, the superintendent may permit such
*** individual banker to resume business upon such condition as may
be approved by him including an observance of all the requirements
of la',-, and making good all deficits in the previous observances of
law." (Civil Code, sec, 5505; Banking Laws, 1928, sec. 6305, p. 11).
Liquidation of affairs by superintendent.
"Upon taking possession of any of the property and business of
any *** individual banker, the superintendent may collect moneys due to
such *** individual banker and do such other acts as are necessary to
conserve its assets and business, and shall proceed to liquidate the
affairs thereof as hereinafter provided. The superintendent shall collect all debts due and claims belonging to the bank." (Civil Code, sec.
5305; Banking La\vs, 1928, sec. 6305, p. 11). The laws also contain detailed provisions relating to the powers and duties of, and the procedure to be followed by, the superintendent of banks in the actual
liquidation of the affairs of an individual banker. (Civil Code, sec.
3304, 3307-6319 and 6325; Banking Laws, 1928, sees. S304, 6307-6319
and 6325, pp. 11-14 and 16).
ARIZOITA.
Private or partnership banks expressly prohibited.
The laws of this State provide that "She establishing or maintenance of private or partnership banks is hereby expressly prohibited;
PZ10VTDSD, that all such banks now in operation shall retire from business or incorporate under the provisions of this Chapter within a period of five years from and after the approval of this Chapter". (Banking Laws, 1922, sec. 30, p. 24; Senate Bill ITo. 26, First Special Session of the Fifth Legislature of Arizona, sec. 30).




- *> -

. x-coia -

Private banks permitted, but subject to same provisions as incorporated
tanks.
The laws of this State, in defining the word "bank", recognize
a private hanking business but indicate that such business is subject
generally to the same ?rovisions as those ' ' i h cover incorporated
-hc
banks. This definition reads in part as follows:
"Wherever the v/ord 'bank' appears in this (bank) act, it shall
be deemed to apply alike to any incorporated bank, trust company, or
savings bank, *** and also to any partnership or individual transacting a banking business." (Acts of 1913, Act 113, sec. 10, as amended
by Acts of 1923, Act 627, sec. 17; Banking Law Pamphlet, 1929, sec.
20, p. 14).
The following provisions are specifically made applicable to
private banks.
Organization; application to bank commissioner.
The laws provide that persons desiring to organize a corporation for the purpose of transacting a banking or trust business "may
apply to the (bank) Commissioner to be incorporated and shall submit
their proposed articles of agreement" which shall set out certain
information, (Acts of 1913, Act 113, sec. 11; C. & M. Digest, sec.
675; Banking Law Pamphlet, 1929, sec. 12, p. 8). If an application
to engage in the business of banking is made by a private bank, "it
shall be in such form as the Commissioner shall prescribe, and he
shall make the same inquiry as is required in cases of incorporation
before issuing to such firm or individual his permit of any kind of
a bank." (Acts of 1913, Act 113, sec. 14; C & M. Dig., sec. 678;
Banking Law Pamphlet, 1929, sec. 15, p. 11).
With reference to the "same inquiry" which the bank commissioner institutes in the case of an incorporated bank, the laws provide that "the Commissioner shall ascertain, from the best source of
information at his command, the character and general fitness of the
persons named as stockholders (owners), and their standing in the
community in which the proposed institution is to be located, and
whether the requisite capital has been, in good faith subscribed and
paid." (Acts of 1913, Act 113, sec. 12; 0. & M. Dig., sec. 676;
Banking Law Pamphlet, 1929, sec. 13, p. 9).
Pee required for organization, increase of capital and amendment of charter..
"No corporation, firm or individual shall be allowed to do a
banking business of any kind unless it, they, he, or she, shall pay
to the Bank Commissioner a fee of one-fifth of one per cent on the
authorized capital stock. Fees at the same rate shall be charged for




—-«~—

•3&-001S--

an i n c r e a s e of c a p i t a l stock. 1 ' For each amend sent or supplement to
the c h a r t e r , except f o r an i n c r e a s e of c a p i t a l s t o c k , a fee of t e n
d o l l a r s s h a l l he charged. (Acts of 1913, Act 113, s e c . 16; C. & M.
D i g . , sec* 680; Banking Law Pamphlet, 1929, s e c . 1 7 , p . 1 1 ) .
T i t l e m i s t show t h a t i n s t i t u t i o n i s not i n c o r p o r a t e d .
Any i n d i v i d u a l or firm doing "business a s a p r i v a t e bank s h a l l
d e s i g n a t e a name for such bank, which s h a l l show t h a t i t i s not i n c o r porated.
(Acts of 1913, Act 113, s e c . 15; C & M. D i g . , s e c . 57S;
Banking law Pamphlet, 1929, s e c . 16, p . 1 1 ) .
P r o p e r t y mast be h e l d i n name of bank.
A l l r e a l and p e r s o n a l p r o p e r t y o*aed by a p r i v a t e bank must be
h e l d i n i t s name and n o t i n the name of the owner or owners of t h e bank.
(Acts of 1913, Act 113, s e c . 15; C. & M. D i g . , s e c . 679; Banking Law
Pamphlet, 1929, s e c . 1 5 , p . 1 1 ) .
v/hen c r e d i t o r of owner may a t t a c h b a n k ' s a s s e t s .
A l l of t h e a s s e t s of a p r i v a t e bank a r e exempt from a t t a c h m e n t
or e x e c u t i o n by any c r e d i t o r of an owner u n t i l a l l of the l i a b i l i t i e s of
t h e bank have been p a i d i n f u l l .
(Acts of 1913, Act 113, s e c . 1 5 ; C. &
M. D i g . , s e c . 679; Banking Law Pamphlet, 1929, s e c . 16, p . 1 1 ) .
Owner may not u s e b a n k ' s funds for •private b u s i n e s s : n o t e of o\7ner as a s s e t .
"lTo p r i v a t e banker s h a l l u s e any of the funds of h i s bank for
p r i v a t e b u s i n e s s , and t h e n o t e of t h e owner or owners of any p r i v a t e
bank s h a l l not be c o n s i d e r e d or accepted as a p a r t of i t s a s s e t s . "
(Acts of 1913, Act 113, s e c . 1 5 ; C. & 'd. D i g . , s e c . 679; Banking Law
Pamphlet, 1929, s e c . 1 6 , p . 1 1 ) .
When owner's widow can be enaowed of b a n k ' s p r o p e r t y .
" I n case of t h e death of an i n d i v i d u a l b a n k e r , h i s widow s h a l l
n o t be endowed of any of the p r o p e r t y of the bank, except such as r e mains a f t e r t h e payment of a l l d e p o s i t o r s and o t h e r c r e d i t o r s . "
(Acts
of 1 9 1 3 , Act 113, s e c . 15; C. & M. D i g . , nee. S79; Banking Law pamphlet,
1929, S G C 16, p . 1 1 ) .
Acceptances and l e t t e r s of c r e d i t ; limii; of l i a b i l i t y .
"Any *** p r i v a t e bank, *** may a c c e p t f o r payment a t a f u t u r e
d a t e d r a f t s drawn upon i t by i t s customers and t o i s s u e l e t t e r s of
c r e d i t a u t h o r i z i n g the h o l d e r s t h e r e o f t o draw d r a f t s upon i t or upon
i t s correspondents a t s i g h t or on time not exceeding s i x months; p r o v i d e d , t h a t no bank s h a l l i n c u r l i a b i l i t i e s under t h i s s u b d i v i s i o n to
an amount equal a t any time i n the a g g r e g a t e t o more than i t s p a i d - u p
and unimpaired c a p i t a l s t o c k and c e r t i f i e d s u r p l u s fund." (Act of March
22, 1919, p , 2 5 1 , s e c . 4 ; C. & M. D i g . , s e c . 741; Banking Law Pamphlet,
1929, s e c . 30, p . 2 1 ) .




*YCALIFOMIAi
Banking "business may only be transacted "by corporations.
The laws of this State provide that the business of banking
may only be transacted by corporations duly organized for that purpose.
The provisions in this connection read as follows:
"The word 'bank' as used in this act shall be construed to
mean any incorporated banking institution wnich shall have been incorporated to conduct the business of receiving money on deposit,
***, *** It shall be unlawful for any corporation, partnership, firm
or individual to'engage in or transact a banking business within this
state except by means of a corporation duly organized for such purpose.
***" (California Bank Act, 1929, sec. 2, p. 3).
COLORADO.

Private banking business -permitted, but made subject to same provisions.
as incorporated banks.
The laws of t h i s State provide that where the business of banking i s engaged in by persons or copartnerships such business i s subject
to the same requirements as are made applicable to incorporated banks.
The laws in t h i s connection read as follows:
"The word •Bank,.' as used in t h i s Act, s h a l l include every person, co-partnership and corporation, esccept national Banks,'engaged in
the business of banking in the State of Colorado11. (Laws of 1913, sec.
1, p . 116; Compiled Laws of 1921, s e c . 2553; Banking Laws, 1928, s e c . 1
p. 3).
"When by the provisions hereof anything i s required to be done
by any incorporated bank or i t s board of d i r e c t o r s , or any officer,
d i r e c t o r or employee thereof, or t h e i r r i g h t or power to do a specified
a c t i s denied, the same act shall: be done, or not, as the case may be,
by individuals or co-partners engaged in the banking business." (Laws
of 1913, soc. 2 , p . 116; Compiled Laws of 1921, sec. 2654; Banking Laws,
1923, sec. 2, p . 3 ) .
In addition to the provisions applicable to incorporated banks,
persons or co-partnorships arc subject to tho following specific p r o visions:
Word "State" may not bo used as p a r t of t i t l e .
"Individuals or co-partnerships engaged in banking s h a l l not
uso the ^'ord ' S t a t e ' as a p a r t of the bank or firm name." (Laws of
1913, s e c . 9, p . 118; Compiled Laws of 1921, sec. 2561; Banking Laws,
1928, soc. 9, p . 7 ) .




._--__
*-10 -

X-GOiE

Ownership of capital stock " y copartners.
b
"Co-partners conducting a bank shall each own at least two per
cent thereof (capital stock) in no wise pledged or incumbered." (Laws
of 1919, sec. 1, p. 299, amending Laws of 1913, sec. 12, p. 119; Compiled Laws of 1921, sec. 2664; Banking Laws, 1928, sec. 12, p. 9).
Oath required of owner of unincorporated "bank,
"Every owner of any portion of an unincorporated hank actually
engaged in the management thereof, shall take and subscribe to an oath
that he will, so far as the duty devolves upon him, diligently and honestly administer the affairs of the "bank; that he will not knowingly violate,
nor willingly permit to he violated, any provision of the law; that he
is the owner in good faith of at least that part of the capital stock
of said bank or that portion of the capital employed therein" specified
by the provision last above quoted. (Laws of 1913, sec. 14, p. 119;
Compiled Laws of 1921, sec. 2666; Banking Laws, 1928, sec, 14, p. 9).
Loans to co-owners prohibited.
"Wo unincorporated bank shall loan to any person or co-partner
owning an interest therein. Ho individual or co-partner owning an interest
in an unincorporated bank shall become endorser for any person, firm or
corporation borrowing money therefrom, nor shall any note or obligation
of such individual or co-partner be considered an asset of such bank."
(Laws of 1913, sec. 33, p. 124; Compiled Laws of 1921, sec. 2687; Banking Laws, 1928, sec. 37, p. 2l).
CffxliSSCEICtEP-.

Private banking business prohibited; exceptions.
The laws of this state provide that "No person, firm, corporation or unincorporated association of persons, other than a private
banker who, on May 29, 1925, "Was engaged in business as a private banker, and, prior thereto, qualified as such by the filing of the bond or
securities required by the general statutes, or a person, firm, corporation, or unincorporated association of persons succeeding in ownership
to the business of a private banker qualified as above .prbvided, and who
shall, upon succeeding to such business, comply with the provisions of
law relating to private bankers, shall engage in the business of a
private banker, provided nothing herein contained shall prevent any
firm, partnership or unincorporated association of persons carrying on
the business of a private banker from.changing or increasing the membership of such firm, partnership or unincorporated association of persons
or from reorganizing into a new firm, partnership or unincorporated
association of persons". (General Statutes of Connecticut, Revision of
1930, sec. 3958).




o

"to private banker shall Use, as a part of M s name or as a
jf
prefix or suffix thereto or as a designation of the "business carried
on by him, the word '"banker1, '"bank", ""banking1, 'trust' or 'savings'
"but he may do so if he qualifies it " y the word 'private'". (General
b
Statutes of Connecticut, Revision of 1930, sec. 3950).
Definition of term "private "banker".
"The term 'private "banker' shall mean any person, corporation,
firm, partnership or unincorporated association of persons, engaged in
whole or in part in the "business of receiving deposits subject to check
or for repayment•upon the presentation of a passbook, certificate of
deposit or other evidence of debt, or for repayment upon request of
the depositor, or engaged in the business of receiving money for transmission, other than a bank, trust company or building and lean association organized under the laws of this State or of the United States or
express companies having a contract or contracts with a railway or railways covering express transportation." (General Statutes of Connecticut,
Revision of 1930, sec. 3949).
Bond must be filed with State Treasurer; purpose of.
Every private banker must deposit with the treasurer of the
State a bond executed by the private banker and by a surety company
or the owner or owners of real estate within the State, approved by
the bank commissioner. This bond shall be conditioned upon the repayment of any money which may be deposited with the private banker
and upon th<S faithful transmission of any money which may be delivered
to such banker for transmission to another, "and upon the payment,
in the event of ,the insolvency or bankruptcy of such private banker,
of the full amount recoverable under the conditions of such bond to
the assignee, receiver or trustee of such private banker for the benefit
(1) of the persons making such deposits or delivering money to such
private banker for transmission to another and (2) the satisfaction
of the general debts and obligations of such private banker". (General
Statutes of Connecticut, Revision of 1930, sec. 3951).
Amount of bond dependent upon population.
"The amount of the bond required of each private banker engaged in business, in any city or town having a population of twenty
thousand or less shall be twenty thousand dollars, and of each private banker engaged in business in any city or town having a population in excess of twenty thousand shall be forty thousand dollars."
(General Statutes of Connecticut, Revision of 1930, sec. 3951).
Securities may be deposited in lieu of bonds.
"Any private banker may, at his option, deposit with the
treasurer in lieu of such bond, in whole or in part, securities owned
by him of a sufficient actual value to aggregate, with any bond so
filed, the required amount of such bond, which securities shall be
such as shall have been approved by the bank commissioner." (General
Statutes of Connecticut, Revision of 1930, see* 3951).




_ fC f -

-X-6Q13 •

.~-13-~
Release of "bond and securities.
Any "bond or securities deposited with the treasurer may "be
released and delivered to the private hanker upon the substitution
of another "bond or securities aggregating the required amount and
approved "by the bank commissioner. Any head or securities shall also be released and delivered to a private banker upon the discontinuance of his business and upon delivery by him to the treasurer
of the state of a certificate issued by the bank commissioner that
all depositors and creditors have been paid in full and all outstanding liabilities have been satisfied. (General Statutes of
Connecticut, Revision of 1930, sec. 3951).
Securities and money paid under bond because of default constitute
trust fund.
Any security deposited with the State treasurer, and any
money which, in case of default, is paid under any bond filed by
any private banker "shall constitute a trust fund (1) for the benefit of the depositors of such private banker and the persons 17.10
shall deliver money to such private banker for transmission to others,
which depositors or persons shall be preferred as to such
money and securities so deposited or recovered in proportion to
the obligations of such private banker to them arising out of such
deposits or receipt of money for transmission and (2) for the benefit of the general creditors of such private banker." (General Statutes
of Connecticut, Revision of 1930, sec. 3951).

r
Real estate of person acting: as surety on b m d must be described and
is sub,jbet to a lien.
Whenever the treasurer accepts as surety on any bond any person
owning real estate "he shall require such real estate to be described
in such bond, and such real estate shall thereupon be subject to a
lien to the amount of the obligation of such bond, which lien shall
take precedence over .any subsequent incumbrance, except liens for
taxes or municipal assessments." A certified copy of the bond must be
filed and recorded in the office of the town clerk in each town where
such real estate is located, and a recording fee therefor must be paid
by the private banker, (General Statutes of Connecticut, Revision of
1930, sec. 3951).




~/(,7~

" JCw^ooXig
-

Provisions not applicable to certain persona, firms, etc.
The provisions relating to the deposit of a bond with the State
"shall not apply to any person, firm, partnership, or unincorporated
association of persons engaged solely in the business of forwarding or
transmitting money." (General Statutes of Connecticut, Revision of
1930, sec. 3951).
Statement of assets and liabilities must be filed with the bank commissioner.
Every private banlc shall "annually, on the first day of November or oftener if required by the commissioner, file with the
banlc commissioner a statement, under oath, in such form as may be required by the commissioner, sho\7ing his assets and liabilities, and
giving such other information as may be required by the commissioner.
(General Statutes of Connecticut, Bevision of 1930, sec. 3954).
Examinations; insolvency or possibility of loss to depositors; banlc
commissioner may suspend operations.
"The commissioner may cause an examination to be made of
the affairs of any private banker at any time at the expense of such
private banker, and, if after appraising all the assets of such private banker, including loans on real estate and any real estate owned
by such banker, he shall find that such private banker is insolvent,
or that the depositors or persons delivering money to him for transmission are liable to suffer any loss, he may deliver to s\ich private
banker a written notice to discontinue receiving money from depositors
or money for transmission and to discontinue paying depositors or other
creditors.*** The written order of the commissioner authorized hereby
shall be in effect a temporary injunction restraining such private banker and his employees from receiving money from depositors, or
for transmission, and from paying depositors or other creditors until
the same shall be vacated by any order of the superior court or a
judge thereof." (General Statutes of Connecticut, Revision of 1930,
sec. 3955).
Procedure to restrain continuance in business or to obtain appointment
of receiver^ liquidation.
If the bank commissioner finds that the private banker is insolvent or that the depositors are-liable to suffer a loss, he must
then make an application to the superior court for the county in which
such banker is located setting forth the facts and circumstances and
praying for the appointment of a receiver or an injunction restraining such private banker from continuing in business. If it appears
to the court, after a hearing on the application, that such private
banker is insolvent or can not resume business with safety to the public, such court may issue an injunction restraining the private banker
from further carrying on business, and, "if insolvent, from collecting




— /(, 3 ~

r &-6B12"

"or receiving any debts or from paying out, selling, assigning or transferring any of the assets, moneys, funds or lands belonging to him until
the court shall otherwise order." The court at the time of ordering the
injunction, or at any time during the continuance of such injunction,
may appoint a receiver for the insolvent private banker. The receiver
has the powers conferred by law upon receivers of insolvent banks and
trust companies. The court may limit the time for filing claims against
such, receiver and the winding up of the business of the private banker,
"the liquidation of his property and assets and the distribution of the
avails thereof among the creditors of such private banker". (General
Statutes of Connecticut, Revision of 1930, section 3955).
Distribution of assets.
The "avails" shall be applied as follows: (1) To the expenses
of settling the affairs of the private banker; (2) to the payment of the
deposits and the money entrusted to the banker for transmission; (3) to the
payment of all other liabilities of the banker. The balance of such
avails shall be paid to such banker. (General Statutes of Connecticut,
Revision of 1930, sec. 3955).
Receiver required to file bond.
The receiver must file a bond in such form and in such amount as
the court may direct before talcing control of the assets of any private
banker. (General Statutes of Connecticut, Revision of 1930, sec. 39553.
Additional provisions regarding power of bank commissioner and superior
court to suspend business in order to preserve assets or protect depositors.
"The commissioner may issue a temporary order restraining
any *** private banker *** from paying out any funds *** or receiving
deposits, or may take possession of *.** such private banker's business
until such time as a hearing may be arranged before a judge of the
superior court, who may, upon application of the commissioner, ***
or private banker, whenever, in the opinion of such commissioner,
*** or private banker, it may be necessary to preserve assets or protect depositors, make an order restraining any *** private banker from
paying out the funds of such *** private banker, or any portion thereof,
or from declaring or paying dividends on any deposits or capital stock
for such time as such judge shall deem necessary. Such order shall be
in writing directed to the *** private''banker to be affected thereby,
and a copy of the order attested and left by the commissioner ***
with such private banker shall be sufficient notice thereof. Before
issuing such restraining order, the judge shall cause reasonable notice
to be given to the *** private banker to be affected thereby. ***
notice to an agent of any private banker shall be notice to such private banker. Notice may be waived by any such *** private banker or
agent» Before *** any private banker shall apply to any judge for such




~ '*</ -

^-X 681&-

"restraining order, notice shalltoegiven in writing to the bank commissioner of intention to so apply at least ten days "before such application shall " e made. If, in the opinion of the bank commissioner,
b
(or) private hanker *** such order should he revoked or modified, any
judge of the superior court may, on application of such commissioner,
(or) private hanker *** revoke or modify the original order, and notice
of such revocation or modification shall be A'iven to the *** private
banker affected thereby in the same manner as in the case of the
original order." (General Statutes of Connecticut, Revision of 1930,
sec. 3870).
Annual fee must be paid bank commissioner.
Every private banker is required to pay annually to the bank
commissioner a fee of fifty dollars. (General Statutes of Connecticut,
Revision of 1930, sec. 3957).
Purchase of real estate without approval of 'bank commissioner prohibited.
"No private banlier doing business in this state *** shall purchase any real estate without first obtaining the approval of the bank
commissioner." (General Statutes of Connecticut, Revision of 1930, sec.
3953).
Reserve fund required.
"Each such private banker shall maintain a reserve fund of
twelve per centum of the demand deposits and five per centum of the
time deposits held by him." (General Statxites of Connecticut, Revision
of 1930, section 3953).
What reserve fund shall consist of.
"Such reserve fund shall consist of gold and silver coin, the
demand obligations of the United States or national bank currency or
federal reserve notes and federal reserve bank notes and be held by
such private banker in his place of business and of balances with reserve agents, subject to demand draft or bonds which are legal investments fir savings banks of this state, provided each such reserve agent
shall be a depository approved by the bank commissioner; and the bonds,
held as a part of such reserve, shall, at no time, exceed at par value
one-sixth of the total reserve fund." (General Statutes of Connecticut
Revision of 1930, sec. 3953).
Dividends or new loans, discounts, etc.', -prohibited while reserve is
impaired.
Whenever the reserve fund of any private banker falls below
the requirements, such banker is prohibited from mailing any new loans,
discounts or investments, or any dividend or distribution of profits




-/6..S

—X»*683r2
A-1.fi —
until the reserve fund is restored to the required amount.
Statutes,of Connecticut, Hevision of 1930, sec. 3953).

(General

Duty of hankcommissioner in case of impaired reserve fund.
"The hank commissioner shall notify any private hanker whose reserve fund shall fall below said required amount, and, if such private
hanker shall fail for thirty days thereafter to make good such reserve
fund, the bank commissioner may apply for the appointment of a receiver
to wind up his business." (General Statutes of Connecticut, Revision
of 1930, sec. 3953).
Definition of permanent capital.
"Any real estate, security, personal property or evidence of
ownership of property acquired by any unincorporated private banker,
with tha capital of such banker and cash received on deposit in excess
of the total liabilities of such banker, shall be construed and designated as permanent capital." (General Statutes of Connecticut, Revision of 1930, sec. 3960).
Investment of permanent capital.
"Each such banker nay, subject to the restrictions provided
for herein, invest his permanent capital and the deposits received
in such real and personal property, as he may deem advisable, provided the security afforded depositors shall not be imperiled by any
such investment." (General Statutes of Connecticut, Revision of 1930,
sec. 3960).
Restriction

upon lending permanent capital to certain corporations.

"Ho private banker shall lend, directly or indirectly, to any
corporation of which he is the legal or equitable owner of more than
twunty-five per centum of the issued capital stock, any part of his
permanent capital or capital stock or the deposits received by him."
(General Statutes of Connecticut, Revision of 1930, sec. 3961).
Location of property upon which loans are made.
All real property and mortgage loans held by any private banker
on May 29, 1925, or acquired with capital or deposits, or to which title
has been taken in connection with the business of the private banker,
must be located in the State of Connecticut, or in certain counties of
the States of Rhode Island, Massachusetts or Hew York. (General Statutes
of Connecticut, Revision of 1930, sec. 3962).
Real ^state loans prohibited if aggregate amount exceeds 80$ of appraised
value of property.
"No private banker shall make a loan, directly or indirectly,




-/£6 Hi

I*1 I"

x=ee±s

til

"upon the security of real estate if the total amount of mortgages,
liens and encumbrances upon such real estate, including the mortgage
loan to " e made " y such private banker, shall, .in the aggregate amount,
b
b
exceed eighty per centum of the appraised value of such real estate."
(General Statutes of Connecticut-,' Revision of 1930, sec. 3963).
Branch or new place of business prohibited, "but location in same town
may be changed.
"No private "banlcer shall establish any "branch or open any new
place of business, provided nothing herein contained shall prevent the
change of location of the place of business of any private banlcer within
the town in which such business is located, but nothing herein contained
shall, permit the change of location of such business from one town to
another." .(General Statutes of Connecticut, Revision of 1930, sec. 3959).
Penalties for violations.
Any person violating any of the above provisions "or of any
other statute concerning the regulation of private bankers or concerning
persons engaged in the business of receiving money for forwarding or
transmission, shall be fined not more than two thousand dollars or imprisoned not more than one year or both." (General Statutes of Connecticut, Revision of 1930, sec. 3967).
Private bankers may incorporate; conditions precedent.
"Any person, firm or unincorporated association of persons,
engaged on May 29, 1925, in the business of private banlcer ***, may incorporate, for the purpose of conducting such business, in the manner provided by law for the organization of joint stock corporations, except
as provided herein. The by-laws of any private banker incorporating ***
shall be submitted to the bank commissioner for approval, and no by-laws
shall be adopted unless the same shall have been approved by him. Any
such person, firm or association intending to incorporate for the purpose
of transacting such business shall serve notice upon the commissioner of his intention to incorporate, and shall furnish evidence to the
commissioner that the capital stock of such corporation to the amount
of at least twenty-five thousand dollars shall have beensubscribed for,
with capital stock shall not be invested in securities deposited with
the state treasurer in lieu of a bond to the state." (General Statutes of
Connecticut, Revision of 1930, sec. 3964).
PEIAWARE
Banking businessroustbe conducted under corporate charter.
"It ahall be unlawful to conduct a banking business or the business of a trust company within this State except under a corporate




-/G 7
—*8-»

-.X:-6812-

"charter valid in this State authorizing the conduct of such business
in this State." (Act approved March 31, 1921, Laws of 1921, sec. 2;
3anking Laws, 1929, sec. 2, p. 15); "ITo hank or trust company not actively engaged in business in this State at the time of the adoption of
this Act shall Open a place of business in this State without having
first secured from the State BankConmissioner a certificate that it
has complied "tith all the requirements of lav/ and that it is authorized
to conduct the business specified therein," (Act approved March 31,
1921, Laws of 1921, sec 3; Banking Laws,1929, sec. 3, p. 15).
Forming banking company without incorporation; penalty.
"It is unlawful for any persons to associate in forming a banking couipany without incorporation; and any persons who shall receive
subscriptions to the capital stock of such company, or shall subscribe
for shares therein, shall forfeit and pay five hundred dollars to anyone -ho will sue for the same; one-half thereof for the use of the State."
(Rev.. Code of Del., 1915, sec. 2102; Banking Laws, 1929, sec. 2102, p.
31.)
Unauthorized banking operations or advertising; penalties.
"If any persons, members, or agents, of stich (unincorporated banking) association,shall issue any bills, or notes, in the nature of
"bank notes, payable to bearer or order, or loan money upon actual or
accommodation notes, or receive money on deposit, every such person shall
forfeit and pay five hundred dollars, to be recovered and applied" as
provided in the provision last above quoted. (Rev. Code of Del., 1915,
sec. 2103; Banking Laws, 1929, sec. 2103, p. 31). "Any person, firm,
or association of individuals*•* *, who shall in any manner represent
or hold out him, her, themselves or itself, •vhether by public advertisement, placard, hand bill or otherwise, as engaged in the receipt of deposits of money as a savings fund, bank or trust company or any business
substantially similar thereto within the boundaries of the State of
Delaware, not being authorized under the laws of this State to engage
in such business or any business substantially similar thereto, shall
be deemed guilty of a misdemeanor, and upon conviction thereof shall be
fined in a sum not exceeding two hundred" dollars or i/aprisoned for a
term not exceeding one year, or both, at the discretion of the Court."
(Rev. Code of Del., 1915, sec. 3507; Banking Laws, 1929, sec. 3507, p.
39.)
DISTRICT 07 COLUMBIA.
I o prohibition against •private banking; business, and, except for taxation
T
-provisions, no other provisions applicable.
The laws of the District of Columbia do not contain any provisions prohibiting the transaction of a banking business by a private
bank; nor do such laws contain any provisions covering the operation or
supervision of such a bank. The laws, however, do contain provisions




•ILK

'

defining a private tank and subjecting it to "a tax; of five hundred dollars per annum". These provisions are given below.
Hate of taxation; "iTi-ivate hank or tanker" defined.
"Private hanks or hankers not incorporated shall pay a tax of
five hundred dollars per annum. Every person, firm, company, or association not incorporated having a place of business where credits are
opened by the deposit or collection of moneys or currency subject to be
paid or remitted upon draft, check, or order, or where money is advanced
or loaned on stocks, bonds, bullion, bills of exchange, or promissory
notes, or ' - e e Stocks, bonds, bills of exchange or promissory notes are
.hr
received for discount or for sale, shall be regarded as a private bank
or banker." (Act of July 1, 1902, 32 Stats, 621, ch. 1352, sec. S, par.
14; Code of the District of Columbia, Title 20, sec. 765, p. 255.)
"Then tax must be paid.
"The taxes for said private banks and bankers, and note brokers
shall be paid to the collector of taxes of the District of Columbia,
and shall date from the first day of July in each year ana expire on the
thirtieth day of June following. Said taxes shall date from the first
day of the month in which the liability begins, and payment shall be
made for a proportionate amount." (Act of July 1, 1902, 32 Stats. 622,
ch. 1352, sec. 6, par. 17; Code of the District of Columbia, Title 20,
sec. 768, p. 253).
FLOBIDA.
Private banking business prohibited.
Under the terms of a statute of this State enacted in 1915, it
is provided that, except for persons, firms or companies which were conducting a private banking business on or before June 4, 1915, "no person,
firm or company shall be allowed to conduct a banking business in this
State without heing incorporated under the banking laws of this State."
(Acts of 1915, ch. 6812, sec. 1; Banking Laws, 1930, Article 14, sec.
4202, p. 55).
Persons, firms or companies conducting a private banking business as of June 4, 1915, could have been -permitted by the Comptroller
of the State, up to November 1, 1915, to continue such business if they
had a capital of $15,000; but if authority to continue in business had
not been obtained prior to I'ovember 1, 1915, the laws required that a
receiver be appointed for such private banks. For private banks which
were authorized to continue in business, the laws provide that they
"shall be governed and controlled by the Banking Laws of this State,
in so far as the same may be applicable, as fully and completely as if
incorporated as a banking company, and shall be subject to all the
penalties of said laws, and to the supervision, control and direction
of the Comptroller," (Acts of 1915, ch. 6812, sees., 2,3,4 and 5;
Banking Laws, 1930, Article 14, sees. 4203,4205 and 4206, pp.55 and 53).




- U'f GEORGIA
JO provisions covering operation except restrictions against using
certain advertising or banking terms.
"Ho private person, firm, or voluntary association engaged
in the business of banking in this State not subject to the supervision
of the Superintendent of Banks,-and no private corporation except a
bank duly chartered and organized under the laws of this State or ur.der
the Acts of Congress" shall rake use of any advertising importing a corporation or indicating that the business engaged in is that of regularly chartered bank. Private banks are also prohibited from using the
words "bank", "banker", "banking company", "banking house", or any other
similar words indicating that the business done is that of a bank, -without also using therewith the words "plainly written or printed, so that
the same may be readily read, 'Private Eank, "ot Incorporated1, and
every person, firm, association, or private corporation other than a regularly chartered bank, advertising to receive, or receiving deposits,
shall at the window or desk at which such deposits are received place,
a conspicuous sign ^ith letters not less than one inch in height, upon
which shall be printed the *7ords, 'Private 3anker, I o Incorporated'."
't
Private bankers engaged in business at the time of the passage of the
act containing these provisions (August 16, 1S19) are not required to
change the names in use by them and "may continue to use, without further qualification or restri-ction, the word 'Banker' or 'Bankers', -There
the use of their names conveys unmistakably that they are not incorporated." (Banking Law Pamphlet, with amendments to August 26, 1925,
Article 1, sec. 4, pp. 3 and 4.) A violation of these provisions constitutes a misdemeanor. (Banking Law Pamphlet, vdth amendments to
August 26, 1925, Article 20, sec. 35, p. 95).
Private bank may be converted into a bank*
The laws of this State also contain provisions oermitting a
private bank to convert into a bank upon complying with the laws
covering the incorporation of banks. (Banking Law Pamphlet, with
amendments to August 26, 1925, Article 11, sees. 1 to 3 inclusive,
pp. 47 and 48.)
IDAHO
P r i v a t e banking p r o h i b i t e d ; but c e r t a i n -private bankers may continue
i n business.
The laws of t h i s State provide that " i t s h a l l be unlawful for
any corporation, p a r t n e r s h i p , firm or individual to engage i n or t r a n s a c t a banking or banking and t r u s t business within this s t a t e except by
means of a corporation duly organized for such purpose, except t h a t any
i n d i v i d u a l , co-partnership or unincorporated a s s o c i a t i o n a c t u a l l y t r a n s a c t i n g a banking or banking and t r u s t business as herein defined within
t h i s s t a t e on the date this act becomes e f f e c t i v e , may continue i n such




-/JO

a-GOiy*

i—•• turn. 'eT

""business at the places where they are then located, under and subject
to the provisions of this act." (Banking Laws, 1925, sec. 2, p. 5;
Idaho Banking Code, 1925, ch. 133, sec. 2.) The word "hank", as used
in these laws, "shall he construed to include any individual, co-partnership, or unincorporated association engaged in the banking business
as herein defined," (Banking Laws, 1925, sec, 2, p. 5; Idaho Banking
Code, 1925, ch. 133, sec. 2).
Definition of banking business.
"The soliciting, receiving or accepting of money or its equivalent on deposit as a regular business shall be deemed to be doing a
banking business, whether such deposit is made subject to check, or is
evidenced by a certificate of deposit, a passbook, a note, a receipt,
or ocher writing; Provided,that nothing herein shall apply to or include money or its equivalent left in escrow or left with the agent
pending investment in real estate or securities for or on account of
his principal.' (Banking Laws, 1925, sec. 2, p. 5; Idaho Banking Code,
1925, ch. 133, sec. 2.)
Banking business must be authorized by law; penalty.
"It shall be unlawful for any individual, copartnership, association, firm or corporation to receive money upon deposit or transact any
other form of banking business except as authorized by this act. Any
person violating any provision of this section, either individually or
as an interested party in any co-partnership, association, firm or corporation, shall " e guilty of a misdemeanor and upon conviction thereof
b
shall be fined in the sum of not less than $300 nor more than $1,000,
or by imprisonment in the county jail not less than thirty days nor
more than one year, or by both fine and imprisonment." (Banking Laws,
1925, sec. 102, p. 47; Idaho Banking Code, 1925, ch. 133, sec. 102).
Advertising banking business not authorized by law; penalty.
"Any person, firm, or corporation, oth.r than a national bank,
not authorized to do a banking or trust business under this act, that
uses or advertises as part of his or its firm or corporate name the
word 'bank', 'banker1, 'trust company1, 'savings bank', or any other
word or words of similar import, is guilty of a felony. Provided, however,
this section shall not apply to title or trust companies incorporated under
Chapter 194 of the Idaho Compiled Statutes 1919,nor to any company which
prior to the passage of this act has lawfully assumed and used as a part
of its name the word 'trust.' or 'trust company1". (Banking Laws, 1925,
sec. 103, p. 47; Idaho Banking Code, 1925, ch. 133, sec. 103.)
ILLINOIS
Banking business forbidden to natural persons, firms or partnerships.
"After January 1, 1921 no natural person or natural persons,
firm or partnership shall transact the business of banking or the business of receiving money upon deposit, or shall use the word 'Bank' or
'Banker1 in connection with said business; provided, that nothing herein




-'7/ -

•X"681'3«

contained shall "be construed to prohibit hanks incorporated under the
laws of this State or of the United States from appointing natural persons as agents to receive deposits of savings in and through the public
schools." (Act of June 4, 1929, sec. I5jh Laws of 1929, sec. 15j=r, p.
188, made effective by popular vote as of December 2, 1930.)
Penalty for violation.
"Any person or persons violating this section shall be deemed
guilty of a misdemeanor and shall, upon conviction thereof, be punished
by a fine of not more than one thousand dollars ($1,000) or by imprisonment in the county jail for not more than one (1) year, or by both such
fine and imprisonment, and the Attorney General or State's attorney of
the county in which any such violation occurs may restrain such violation by a bill in equity to be filed in the Circuit Court of such county."
(Act of June 4, 1929, sec. 15Jb Laws of 1929, sec. 15^, p. 188, made
effective by popular vote as of December 2, 1930.)
(Note: — Sec. 15§- of the Illinois Laws of 1929, as it appeared
in the laws of 1919, p. 235, prohibited the transacting of the business
of transmitting money to foreign countries and buying and selling foreign
money or receiving money on deposit to be transmitted to foreign countries
(express, steamship and telegraph companies excepted).
The Supreme Court of Illinois in the case of Wedesweiler vs.
Brundage, 297 111. 228, 130 N.E. 520, (April 5, 1921) held that these
restrictions rendered the section unconstitutional on the grounds that it
embraced a subject not mentioned in the title of the act, that it granted
a special privilege in violation of sec. 22 of Art. IV of the Illinois
Constitution,
that it deprived the Appellees of the right to continue
the business in which they were engaged without due process of law, and
that it deprived them of equal protection of the laws in violation of Sec.
2, Art. II of the State Constitution and of Sec. 1 of the 14th Amendment
to the Federal Constitution. The court further held that, in the absence
of a statute, the right of an individual to engage in the banking business
in all or any of its departments is unrestricted, but that the business is
of a public character and is properly subject to statutory regulations for
the protection of the public; and, that an individual is not engaged in
the banki'og business because he does some of the things which are frequently or usually done by banks, such as loaning money and taking bonds and
mortgages therefor and in transmitting money to foreign countries or buying
and selling foreign exchange. This case is cited for the purpose of showing
that the scope of the present section appears to be somewhat limited.)
BID I M A
Private banks must be authorized to transact banking business.
"It shall be unlawful for any individual, (or) firm *** to




-f]i^~

-X-GOlg"1'

hereafter engage in a banking business after the enactment of this act
(1915) without first receiving from the (State) charter board the approval of their application ***. When in the judgment of said charter
board it is advisable to m ' ; a personal investigation as to the need
a'e
and necessity of establishing (a) * * • private bank, * * * , then the
*
board may appoint some person to make a thorough investigation, and
said -oerson shall make a written report of his findings and file same
with the charter board; *** ". (Acts of 1915, sec. 3, p. 550; Banking
Laws, 1929, sec. 3, p. 77.)
Penalty for violation of above "provision.
"Any person violating the provision of this (above quoted) section either individually or as an interest (ed) party, shall be guilty
of a misdemeanor, and upon conviction thereof", shall be subject to
certain prescribed penalties. (Acts of 1915, sec. 3, p. 550; Banking
Laws, 1929, sec. 3, p. 77).




-If ~
__34—--

,x_^8i»—»

The Act of 190?, provides "That every partnership, firm or individual transacting a "banking "business within this state, or using the
word "bank, "banker, or "banking in connection with M S or its business,
shall be subject to the provisions of this act." (Acts of 1907, sec. 1,
p. 174; Banking Laws, 1929, sec. 1, p. 43.)
Capital required: investment of: segregation of
"It shall be unlawful for any partnership, firm or individual to
transact a banking business in this state, or to advertise as a banker
unless said partnership, firm or individual has at least ten thousand
($10,000) dollars of cash capital invested in well secured notes in state
or municipal bonds, or in bank building, furniture or fixtures, and shall
be set apart for the security of the creditors of said bank; * * *".
(Acts of 1907, p. 174, sec. 2; Banking Laws, 1929, sec. 2, p. 43.)
5eal estate investments; restrictions upon and conditions regarding.
• * * * not more than one-third of the capital * * * fixed in the
"
detailed statement of such partnership, firm, or individual shall be invested in real estate: * * *". If any part is invested in real estate,
the real estate must be conveyed to the private bank in its own name by
a deed signed and acknowledged by the members of the bank and their ?
wives. The deed must give a description of the real estate and its
value, must convey a good fee simple title, shall be recorded in the
recorder's office of the county where the land is located and "a copy
thereof filed with the bank commissioner: Provided, That no part of the
capital, surplus or undivided profits of said bank, except as aforesaid,
may be invested in real estate except it be taken in settlement of a
doubtful claim, or purchased at judicial sale on a judgment or a decree
of foreclosure in favor of said bank; and when so taken, it must be by
deed made to such; and the president and cashier of such bank are hereby
empowered and authorized to execute good and sufficient deed or deeds
therefor, in the name of such bank, upon proper order made therefor by
the board of directors of such bank. All mortgages held by or to secure
money loaned by the bank shall be satisfied of record upon the payment
thereof, by a release or satisfaction of mortgage executed in the name
of the bank by its president, vice president or cashier." (Acts of 1907,
p. 174, sec. 2; Banking Laws, 1929, sec. 2. pp. 43 and 44.)
Increase or decrease of capital stock.
The capital stock of any private banker may be increased by an
agreement in writing signed by the partners or owners holding two thirds
of the capital stock and paying into the bank in money the amount of the
increase. This amount and a certificate by the cashier or manager of
the bank of its payment, shall, within five days thereafter, be filed
with the bank commissioner. The capital stock may be decreased but at
no time below $10,000, upon a written petition of the partners or owners




—25--

3c i501D< »
f

holding two-thirds of the capital stock to the bank commissioner. The
bank commissioner, after an examination of the bank may approve or refuse the reduction. If approved, that factrau-.itbe indorsed upon the
petition, and notice of such reduction must immediately be published
for thirty days in some newspaper published in the tovn where the bank
is located, or, if no newspaper is published in the town, then in one
published at the county seat. (Acts of 1907, p . 174, sec. 2; Banking
Laws, 1929, sec. 2, p . 4 4 ) .
Statement required to b e filed.
3very private banker is required to file with the bank commissioner a detailed sworn statement of:
First.

The name of the bank.

Second. A copy of the articles of copartnership or agreement u n der which the business is being, or is to be conducted, which shall be
executed and acknowledged by all the parties interested in the bank, and
at lea3t one of whom shall b e a resident of the State of Indiana. If a
bank business is being or is to be transacted or carried on by an individual, such individual must be a resident of the State of Indiana,
and the statement must so show.
Third. The county and city or town in which the bank is to be
located, and the business carried on.
Fourth. The amount of the capital paid into the business and to
be kept and maintained at all times in the business.
Fifth. That the aggregate responsibility and net worth of the
individual members of such firm, partnership or individual is equal to
an amount at least double the amount of the capital -oaid into the bank.
Sixth. The names of the officers who are to manage the business.
(Acts of 1907, p. 174, see. 3; Banking Laws, 1929, sec. 3 , p. 4 4 ) .
Certificates of stock must be issued to individuals forming bank and deemed
capital stock.
Each private bank shall issue certificates of stock to the individual
or individuals forming the bank "in an amount equal to the capital of said
bank, which certificates of stock shall be deemed and considered the capitaj.
stock of such bank, * * * «. (Acts of 1907, p . 174, sec. 4; Banking Laws,
1929, sec. 4, p. 45.)
Certificate from bank commissioner to'transact banking business; when
issued; fee required.
After the filing of the statement referred to above and the
payment to the bank commissioner (of) a fee of one-tenth of 1 per cent,




->7i

-

of such capital stock, and the filing H.th the hank commissioner, (of)
the oath of some member of the partnership, firm or individual, that the
capital has teen paid in as provided for and in compliance * * * (vith)
this act) then the hank commissioner shall, without unnecessary delay,
issue to such partnership, firm or individual, a certificate authorizing
such partnership, firm or individual to transact a hanking business."
(Acts of 1907, p. 174; sec. 5; Eanking Laws, 1929, sec. 5, p. 45.)
List of owners must be posted ,and changes must be reported to hank
commissioner.
A list of the owners of any private bank, and a statement to
the effect that the institution is a private hank, must be posted in
the room of every such bank. Any subsequent changes in the owners
must be shown on the list and a report of all such changes must be made
to the hank commissioner. (Acts of 1907, p. 174, sec 6; Banking Laws,
1929, sec. 6, p. 45.)
Report showing resources and liabilities must be.made to hank commissioner; number required and contents of.
—

"

•—••—•••••"••• *

»•••" i«""»>"

i m i « i m n n i n y » — — i ^ ^ — i w i - w i y i B

Every private banker "shall make to the hank commissioner t /
vo
reports during each and every year, according tc the form which may he
prescribed by him, verified by the oath or affirmation of the president,
cashier or other managing agent of such bank, which report shall exhibit in detail the resources and liabilities of the hank at the close
of business on any past day to be by him specified; * * * ". These reports must he made within five days after they have been called for by
the hank commissioner and a verified copy must he published in a.newspaper. (Acts of 1907, p. 174, sec. 7; Banking Laws, 192?, sec. 7, p. " " •
"46.)
Commissioner may call for special reports*
The commissioner is empowered to call for special reports "whenever, in his judgment, the same shall be necessary, in order to arrive
at a full and complete knowledge of its (the private hank's) condition".
(Acts of 1907, p. 174, sec. 7; Banking Laws, 1927, sec. 7, p. 46.)
Capital stock, "urplus and undivided.profits must be given as items.
Each private hank "in making any statement of the liabilities
and assets of said bank, shall give the amount of its capital stock,
its surplus and undivided profits as items thereof." (Acts of 1907,
p. 174, sec. 4; Banking Laws, 1927, sec. 4, p. 45). "In no reports
filed * * * shall real or personal property of an individual or individuals owning said hank, except the title is in the bank, be permitted as an asset." (Acts of 1907, p. 174, sec. 7; Banking Laws,
1929, sec. 7, p. 46.)




^2?

3&-&&13-

Penalty for, ..failure to .transmit, . P publish reports of condition.
O
Any private Dank failing to make and publish any report of, condition within five days after a request is made therefor is subject to
a penalty of not less than one hundred dollars nor more than five bundled dollars. (Acts of 1907, p; 174, sec. 7; Banking Laws, 192?, sec.
7, p. 46).
Additional penalties prescribed for violations.
"Any person, firm or copartnership violating any of the provisions of tnis(1907) act shall be fined in any sum not exceeding one
thousand dollars, to which may be added for the second offense imprisonment for any term not exceeding two years." (Acts of 1907, p. 174, sec.
9; Banking Laws, 1929, sec. 9, p, 46.)
Property held in trust.
If property is held in trust by a private banker, complete information regarding the trust must be set forth in an instrument which
must be recorded in the recorder's office of the county in which the
private bank is located and the instrument together with a certificate
showing that it has been recorded must be filed with the bank commissioner. If the instrument is not recorded and filed, the property held
in trust "shall be considered a part of the assets" of the private bank
in case the affairs of the bank are wound up and the "remaining assets
are not sufficient to pay in full the bona fide claims of all depositors."
(Acts of 1907, p. 174, sec. 10; Banking Laws, 1929, sec. 10, p. 47 )
Depositors have lien on assets.
The depositors in any private bank "shall have a first lien on
the assets of such bank in case it is round up, to the amount of their
several deposits. And for any balance remainingunpaid, such depositors
shall share in the general assets of the owner or owners, alike, with
general creditors." (Acts of 1907, p. 174, sec. 11; Banking Laws, 1929,
sec. 11. p. 47 )
Private banks may sue and be sued; service of process; effect of judgments.
Any private banker "shall have the right to sue, and be sued, under the name under which such bank is authorized to transact its business.
Service of summons or other process of court upon the officer or afent
in charge of the business of such bank shall be good and sufficient service to give the court jurisdiction, and any judgment obtained against
such bank shall be valid and binding against all the persons interested
therein." (Acts of 1907, p. 174, sec. 12; Banking Laws, 192g, sec. 12,
P . 47.)




-'77 -

T-fifll.8^

Loans to officers restricted.
Ho private Dancer nor any of its officers "shall loan any of
the funds of said bank in any amount exceeding thirty (30) per cent
of the capital stock of said hank to any officer or officers thereof" . (Acts of 1907, -o. 174, sec. 13; Banking Laws, 1929, sec. 13,
p. 48.)
Branch offices prohibited.
It is -unlawful for any private banker "to open, or establish a
branch bank or branch office: Provided, That the provisions of this
section shall not apply to branch banks or branch offices for which
charters have heretofore been granted." (Acts of 1921, p. 367, sec.
1; Banking Laws, 1929, p. 139.)
Trust cowers may be executed.
Private banks may "accept and execute trusts of any and every
description which may be committed or transferred to them, under the
same rules and regulations as now govern like powers in loan and trust
companies." (Acts of 1915, p. 310; Banking Lavs, 1929, p. 81.)
Examinations; number and character of.
The affairs of every private bank shall be examined by one of
the examiners appointed by the bank commissioner "as often as shall be
deemed necessary", and a thorough examination into all the affairs of
the bank is required. The examiner may examine under oath any of the. bank's
officers and agents, has the power to administer oaths to such officers
and agents, and must make a detailed report of the condition of the
bank to the bank commissioner. Each ban1": in charged a fee for such
examinations according to the amount of its assets. (Acts of 1911, o.
30, sec. 2, as amended by Acts of 19?1, p. 816 and by Acts of 1929, p.
495; Banking Laws, 1929, sec. 2, -m. 83-85)
Insolvent or failing; condition; receiver may be appointed; duties of
examiner and bank commissioner.
If a private bank is in an insolvent or failing condition,
or if the assets are being wasted or improperly used, at the time the
State bank examiner makes an examination, the examiner is required immediately to notify the bank commissioner. If the commissioner then
deems it "necessary and expedient" he may direct the examiner or some
other person to take charge and control of the private bank; and the
commissioner shall, if he finds it to be to the best interests of the
depositors and creditors of the bank, make application to the circuit
or superior court of the county where the bank is situated for the appointment of a receiver for it. Notice of such application shall be
given to the stockholders and depositors of the bank by publication as




— /;i *
-

X^0812">

J "gB"\.
r
directed by the court. If any private ban1*: becomes in a failing or insolvent condition or fails or suspends between periods of examination,
it shall be the duty of its officers immediately to notify the commissioner of such condition, failure or suspension, and the commissioner
shall thereupon, appoint 3ome proper person to take charge of its assets,
pending application for and the appointment of a receiver. Any of
the officers failing to so report the suspension or failure of his bank
shall be deemed guilty of a misdemeanor and on conviction may be fined
not less than one hundred dollars nor more than five hundred dollars.
The person appointed to take charge of the assets of any private bank
shall receive reasonable compensation to be recommended by the bank commissioner and allowed him by the court having jurisdiction over the
receiver, and immediately paid out of the assets before any distribution thereof is made. (Acts of 1911, p. 30, sec. 2, as amended by Acts
of 1931, p. 816, and by Acts of 1929, p. 495; Banking Laws, 1929, sec.
2, pp. 83-85).
Failure of bank commissioner to discharge duties with reference
to failing or insolvent private banks.
If the bank commissioner fails, neglects or refuses for
fifteen days to discharge any duty imposed upon him with reference to
failing or insolvent private banks, the depositors and creditors
representing 25 per cent of the total deposits and obligations, except stock liability, have the right to petition the Attorney General
who shall thereupon perform the duties of the bank commissioner in
the particular case and apply for a receiver. (Acts of 1911, p. 30,
sec. 2, as amended by Acts of 1921, p. 815, and by Acts of 1929, p.
495; Banking Laws, 1929, sec. 2, p. 85.)
Voluntary liquidation; commissioner may petition for receiver.
When a private bank has been in voluntary liquidation for eighteen or more months, the bank commissioner may petition the court for
the appointment of a receiver if he considers that the affairs are not
being administered to the best interests of the depositors and stockholders. Upon the appointment of the receiver, he "shall take charge
and proceed to administer and terminate the affairs of the institution."
(Acts of 1915, p. 546, sec. 1; 3anking Laws, 1929, p. 82).
Failure to pay examination fee also cause for appointment of receiver.
A failure to pay any examination fee is also cause for the
appointment of a receiver of a private bank. (Acts of 1911, p. 30, sec. 2,
as amended by Acts of 1921, p. 816, and Acts of 1929, p. 495; Banking Laws,
1929, sec. 2, p. 85)
Owners may stay or abate appointment of receiver.




Upon the filing of a bond before the oourt which appointed a

~'7f

~

-Jt-68iS-

receiver for a p r i v a t e bank, or before which the commissioner's app l i c a t i o n for the appointment of a receiver i s pending, the owners
of a p r i v a t e bank may abate or stay the appointment of a r e c e i v e r .
(Acts of 1907, p . 174, sec. 14; Banking Laws, 1929, sec. 14, p . 48.)
Voluntary liquidation.
The laws of this state contain provisions outlining the procedure and the conditions under which a private hank may go into voluntary liquidation. (Acts of 1907, p. 174, sec. 15; Banking Laws,
1929, sec. 15, p.' 48.)
Reports and examination of private hanks in voluntary liquidation.
Private banks in voluntary liquidation are subject to the
same examinations and must, at the discretion of the bank commissioner,
make the sane reports as solvent private bankers. (Acts of 1911, p.
30, sec. 2, as amended by Acts of 1921, p. 816, and Acts of 1929, p.
495; Banking Laws, 1929, sec. 2, p. 85.)
Taxation of private banks.
There are also provisions covering the taxation of membership
shares or certificates of stock of private banks. (Acts of 1919, p.
198; Banking Laws, 1929, pp. 101-108.)




- a i .»•

~s«fiRi?„

IOTTA.
ITo provisions covering operation except r e s t r i c t i o n s on the use of
c e r t a i n advertising or franking terms.
The laws of t h i s State provide that " I t s h a l l he unlawful for
any individual, partnership, or unincorporated association * * * not
subject to supervision or examination of the franking department" to
make use of the words "frank", "tanking", "franker" or any derivative of
the word "franking", or to make use of any sign or advertising i n d i c a t ing that the place of 'business or the "business carried on is that of a
hank. (Banking Laws, 1929, ch. 412, sec. 9151.) I t i s also provided
that a v i o l a t i o n of these provisions constitutes a misdemeanor (Banking-laws, 1929, ch. 412, sec. 9152); "but that neither the penalties p r e scrifred for the commission of t h i s misdemeanor nor the afrove r e s t r i c tion on the use of certain advertising or franking terms "shall "be cons t r u e d as affecting or i n any wise i n t e r f e r i n g with any private frank
or p r i v a t e franker that may he engaged in lawful business previous to
April 16, 1919."
(Banking Laws,1929, ch. 412, sec. 9153). An add i t i o n a l penalty i s prescribed in case "any * * * p r i v a t e franker, or
person, not incorporated under the provisions" of law covering savings
franks," or any officer, agent, servant, or employee thereof" advertises
or exhibits any sign as a savings bank. (Banking Laws, 1929, ch. 413,
s e c . 9200 ) . The laws also require corporations organized under the
general incorporation laws to transact a banking business to have the
word "State" as a p a r t of t h e i r t i t l e s , but these laws s p e c i f i c a l l y
deny the r i g h t to use t h i s word as a p a r t of i t s t i t l e to any "partners h i p , individual, or unincorporated association engaged in buying or
s e l l i n g exchange, receiving deposits, discounting notes and b i l l s , or
other franking "business." (Banking Laws, 1929, ch. 414, sees. 9202
and 9203.)

KANSAS
Corporate charter required to engage in franking "business.
"Prom and a f t e r the passage and taking effect of t h i s act, i t
shall be unlawful for an individual, firm or association to engage in
the franking business in the State of Kansas without f i r s t making app l i c a t i o n to and receiving a corporate charter therefor from the State
charter board, and procuring a c e r t i f i c a t e to transact such business
from the frank commissioner, as provided fry law; Provided, That t h i s
act shall not apply to any individual, firm or association now engaged
in the transaction of franking business in the State of Kansas as a
p r i v a t e bank." (Laws of 1929, ch, 90, sec. 1; Banking Laws, 1929, sec.
95, p. 29).
Private bankers engaged in business at the time of the
enactment of the afrove provision of law " s h a l l "be amenafrle to a l l the
provisions" of the so-called frank act. (Laws of 1897, ch. 47, sec. 36,
as amended fry Laws of 1907, ch. 54, sec. 1; Hevised Statutes of Kansas,
1923, sep. 9-138"; Banking Laws, 1929, sec. 36, p . 14.)




KETTUCKY

P r i v a t e banking business expressly prohibited.
The laws of
ful for any person or
n e r s , to engage in or
t h i s Commonwealth."
C a r r o l l ' s Ky. S t a t s . ,

t h i s State provide "That i t shall be unlawpersons, either as individuals or co-partconduct the business of p r i v a t e banking in
(Acts of 1906, Ch. 44, p . 278, sec. 1;
1930, sec. 602a-1 ) .

Penalty for transacting p r i v a t e banking business.
"Any person or persons who shall engage in such business
after t h i s law shall become effective shall be deemed g u i l t y of a
misdemeanor, and, upon conviction, shall be fined not l e s s than
twenty nor more than f i f t y d o l l a r s for each day he or they shall
be engaged in said business; after April 15, 1906, to be recovered
under indictment in the c i r c u i t court of the country where the
offense shall be committed.."
(Acts of 1S06, ch. 44, p . 278,
sec. 2; C a r r o l l ' s Ky. S t a t s . , 1930, sec. 602a~2 ).
P r i v a t e banking provisions repealed; incorporation required.
"Sections 599t 600, 601 and 602, Kentucky S t a t u t e s , r e l a t i n g to p r i v a t e banking a r e hereby repealed, and persons hereafter conducting or engaging in the banking business in t h i s Commonwealth are required to become incorporated as now provided by
law."
(Acts of 1906, ch. 44, 9. 278, sec. 3; C a r r o l l ' s Ky.
S t a t s . , 1930, sec. 602a-3 ) .




X-0018

LOUISIANA,
Private banking of doubtful legality.
Section 275 of the Revised Statutes of Louisiana (Act 166
of 1855) provides that "Any person or association of persons, or corporation
formed in compliance with the following provisions, may
transact the business of banking' in thie state, and establish offices of discount, deposits, and circulation
for that purpose, upon the terms and conditions; and
subject to all the liabilities and penalties herein described. "
Section 1 of Act 179 of 1902, as amended by Act 140 of 1906,
(Banking Law Pamphlet, 1928, sec. 1, p. 4) provides «*** that the business of banking shall be carried on
only by such incorporated associations as shall have been
organized under the laws of this state, and of the United
States, by individual citizens of the state and by firms
domiciled in the state where active members shall be citizens of this state, provided that no private banker or
other person or persons not incorporated under this act
shall be permitted to use the title Bank, Banking Association or Savings Bank in connection with its name."
Section 1 of Act 137 of 1918 (Banking Law Pamphlet, 1928, sec.
1, p, 105), provides in part that "***No person, firm, association, company or corporation, either domestic or foreign, excepting only banks
organized under the laws of the United States, not subject
to. the supervision of the Examiner of State banks, and not
required by the laws of the State of Louisiana to report to
him, and which has not received from the Examiner of State
banks a certificate of authority to do a banking business,
*** shall engage in the business of banking, or the business of receiving money on deposit, *** or solicit or receive deposits or transact business in the way or manner
of a bank, savings bank or trust company ***"
Section 4 of this Act (Banking Law Pamphlet, 1928, sec. 4, p.
-108), also provides that "all laws or parts of laws in conflict herewith
be, and the same are hereby repealed."




-3C-0Q1811

The provisions of Section 375 of the Revised Statutes and Section 1 of Act 179 of 1902, as amended by Act 140 of 1906, above quoted
authorized private bankers to carry on the "business of banking,,;
but whether private banking can now be transacted lawfully is a doubtful question in view of the fact that the laws do not appear to contain
any provisions providing for the supervision of, or the issuance of a
certificate of authority to do a banking business to, private bankers
by the "Examiner of State banks", which is required by the above quoted
provision of Section 1 of Act 137 of 1918, as a condition precedent to
the transaction of a banking business by any person or corporation.
Furthermore, the Examiner of State banks advises that he will not issue
a certificate of authority to a private banker to engage in the banking
business. Additional provisions of Act 137 of 1918 affecting the private
banking situation are set forth below.




-//•-

A-" U U I W

Prohibition against advertising or transacting business as "bank,
savings "bank or trust company.
Ho person, firm, association, company or corporation, except
"banks organized under the laws of the United States, not authorized
to do "business " y the State Bank Ixaminer or reporting to or under his
b
supervision, can "advertise ths.t he or it is accepting money, savings
and issuing notes or certificates of deposit or investment therefor *
* * or transact business in such a way or manner as to lead the public
to "believe that its business is that of a hank, savings hank, or trust
company, * * * , or use the word, 'Bank', 'Banker1, 'Banking1, 'Savings
Bank', 'Savings', 'Trust', 'Trustee', 'Trust Company', * * * or any
other word or words of similar import as part of its name or title, "
or make use of any sign or other advertising indicating that the place
of business or the business carried on is in any way that of a bank,
savings bank, or trust company. (Act 137 of 1918, sec. 1; Banking Law
Pamphlet, 1928, sec. 1. pp. 105 and 105.)
Penalty for violation of above provisions; procedure to restrain violation.
The laws prescribe that a penalty of $100 a day must be paid to
the State for each day that a violation of any of the above provisions
continues. Upon an action brought by the Attorney General the District
Court may issue an injunction restraining the use of words or from
further transacting business in violation of the above provisions, and
may make such other order as equity and justice may require. (Act 137
of 1918, sec. 1; Banking Law Pamphlet, 1928, sec. 1, pp. 106 and 107.)
Examiner oust examine persons or firms suspected of violating above
provisions; fees.
Whenever it comes to the notice of the State Bank Examiner that
any person, firm, or corporation, is violating the above provisions or
is conducting the busir.sss of banking, it is his duty to make an immediate examination of the affairs of any such person, fira, or corporation. For the purpose of making such examination, tho examiner is given
free access to all the books, papers and accounts and has power to administer oaths to any officer, agent, employee, e t c , of such person, firm,
or corporation, and to any other person whose testimony may be required.
The examiner is authorized in his discretion, to assess tho same fee for
such examination as is assessed for the examination of incorporated banks
and trust companies. (Act 137 of 1918, sec. 2; Banking Law Pamphlet,
1928, sec. 2. pp. 107 and 108.)
Refusal to permit examination or answer inquiries.
A refusal to exhibit or turn over any books, accounts and papers
for examination or to answer any inquiries of the examiner, constitutes
a misdemeanor which, upon conviction, is pxinishable by a fine of not
less than $100 nor more than $500. (Act 137 of 1918, sec. 2; Banking
Law Pamphlet, 1928, sec. 2, p. 107.)




,/^j~

X=£8JLS-

Examiner to report violations to Attorney general.
Where the State Bank Examiner has duly ascertained that any
person, firm, or corporation is engaging in the "business of hanking
or otherwise violating the provisions above referred to, it is his
duty to report such violation or violations to the Attorney General,
"who shall institute the necessary proceedings to enforce the penalties" above provided for. (Act 137 of 1918, sec, 3; Banking Law Pamphlet, 1928, sec. 3, p. 108.)

MAME
Private banking prohibited; some exceptions.
General rule:
"
No person, copartnership, association, or corporation
shall do a banking business unless duly authorized under the
laws of this state or the United States, except as provided
by section four. The soliciting, receiving, or accepting of
money or its equivalent on deposit as a regular business by
any person, copartnership, association, or corporation, or a
corporation intended to derive profit from the loan of money
except as a reasonable incident to the transaction of other
corporate business or when necessary to prevent corporate
funds from being unproductive, shall be deemed to be doing a
banking business, whether such deposit is made subject to
check or is evidenced by a certificate of deposit, a pass-book,
a note, a receipt, or other writing; provided that nothing
herein shall apply to or include money left with an agent,
pending investment in real estate or securities for or on account of his principal.
Whoever violates this section, either individually or as
an interested party in any copartnership, association, or corporation, shall be punished by a fine of not less than three
hundred dollars nor more than one thousand dollars., or by imprisonment for not less than sixty days nor more than eleven
months, or by both such fine and imprisonment.'.' (R.S. of 1930,
ch. 57, sec. 3.)
Exceptions:
(a)

Corporations which desire to encourage thrift among
their employees may secure right to receive from
such employees deposits subject to interest at a
specified rate, upon application to the bank commissioner and compliance with certain conditions.
(R.S. of 1930, ch. 57, sec. 4.)

(b)

Apparently a foreign person or association may carry
on the .business of accumulating and loaning or investing the savings of its members or of other persons
in the manner of loan or building associations upon
compliance with certain conditions.




~ / ^

'X-6811?'

"The bank commissioner may authorize any such association
or corporation duly established under the laws of another state
to carry on such business in this state, but said association
or corporation shall not transact such business in this state
unless it shall first deposit with the treasurer of state, the
sum of twenty-five thousand dollars and thereafter a sum equal
to fifteen per cent of the deposits made in such association or
corporation by citizens of'the state, the amount of percentage
of deposits so required to be determined from time to time by
the bank' commissioner; or in lieu thereof the whole or any part
of said sum nay consist of any of the securities in which savings
banks may invest, as regulated in section twenty-seven at their
par value, and the said deposit shall be held in trust by
said treasurer for the protection and indemnity of the residents of the state with whom such associations or corporations
respectively have done or may transact business. Said moneys
or property shall be paid out or disposed of only on the order
of some court of competent jurisdiction, made on due notice to
the attorney-general of the state, and upon such notice to the
creditors and shareholders of such association or corporation as
the court shall prescribe. For the purpose of ascertaining the'
business and financial condition of any such association or corporation doing or desiring to do such business, the bank commissioner may make examinations of such associations or corporations,
at such times and at such places as he may desire, the expense
of such examinations being paid by the association or corporation examined, and may also require returns to be made in such
form and at such times as he may elect. Whenever, upon examination or otherwise, it is the opinion of the bank commissioner
that any such association or corporation is transacting business
in such manner as to be hazardous to the public, or its con.dition is such as to reader further proceedings by it hazardous
to the public, said bank commissioner shall revoke or suspend
the authority given to said association or corporation; but this
section shall not prevent such association, corporation, or institution incorporated under the laws of another state, from
loaning money upon mortgages of real estate located within the
state." (R.S. of 1930, ch. 57, sec. 122.)
Prohibition of use of words "bank," "savings," "trust" and related words.
"No person or partnership and no association or corporation
unless duly authorized under the laws of this state or of the
United States to conduct the business of a bank or trust company shall use as a part of the name or title under which such
business is conducted, or as designating such business, the
word or words 'ban!:,' 'banker,' 'trust,' "trust company*'
'banking,' or 'trust and banking company,1 or the plural of any
such word or words or any abbreviation thereof in or in con-




— ^7

~

'•X-68I1IS"'

nection with any other business than that of a bank or trust
company duly authorized as aforesaid. Provided, however, that
this restriction shall not apply to any such person, partnership,
association, or corporation, conducting business under such name
or style prior to the twenty-third day of April, nineteen hundred five. No person, partnership, association, or corporation,
bank or trust company, except a mutual savings bank organized
under the laws of this state, shall use as a part of its name
or title the word or words 'saving,1 'savings,' or 'savings bank.'
Provided, however, that this restriction shall not apply to any
business being conducted under such name or style prior to the
twenty-third day of April, nineteen hundred five, nor to any
bank or trust company using such word or words prior to the
first day of January, nineteen hundred twenty-nine.
Any person, partnership, association, or corporation violating any of the provisions of this section may be enjoined
therefrom by any court having general equity jurisdiction, on
application of the bank commissioner or any person, corporation,
or association injured or affected by such use; and any such
court may further enjoin any attempt on the part of any person,
firm, or corporation to mislead or give a false impression to
the public that such person, firm or corporation is authorized
under the laws of this state to conduct the business of a trust
company. Any person or persons violating any of the provisions
of this section, either individually, as members of any association or copartnership, or as interested in any such corporation,
shall be punished by a fine of not more than one thousand dollars,
or by imprisonment for not less than sixty days nor more than
eleven months, or by both such fine and imprisonment." (E.S. of
1930, ch. 57, sec. 5»)
MARYLAND.
No provisions covering operation except restrictions against using
certain advertising.
Except for the folio- Lr/g provisions, which appear to be applicable to private banks, tub laws of this State contain no provisions covering the organization or operation of private banks:
"No person, co-partnership or corporation not subject to the
supervision and examinations of the Bank Commissioner, and not required
to make reports to him * * *, shall make use of any sign at the place
where such business is transacted, having thereon any artificial or
corporate nane or other words indicating that such place or office
is the place or office of a banking institution as defined in this
Article"; nor shall such person or persons, make use of or circulate
any advertising "indicating that such business is the business of a
banking institutions A violation of these provisions constitutes a
misdemeanor and subjects the person or persons committing such viola-




~'*a

3C-6B1-B"

tion to certain prescribed penalties< "The provisions of this section
shall not apply to persons, copartnerships, or corporations which, at
the time this Act takes effect, (June 1, 1918), are engaged in business
in incorporated towns or cities of the State of less than ten thousand
inhabitants." (Annotated Code of Maryland, 1924, Vol. 1, Article Eleven
sec. 78; Laws of 1910, ch. 219, sec. 74, as amended by Laws of 1912, ch.
194, sec. 74 and Laws of 1918, ch. 33, sec* 75; Banking Laws, 1927, sec.
78, p. 36.)
Definition of "Banking Institution."
"the words 'Banking Institutions', as used in this Article,
shall be held to mean incorporated Banks, Savings Institutions and Trust
Companies, * * * ". (Annotated Code of Maryland, 1924, Vol. 1, Article Eleven
Sec. 52; Laws of 1910, ch. 219, sec. 51; Banking Laws, 1927, sec.
52, p. 27.)
MASSACHUSETTS.
No provisions prohibiting private banking business; but certain
advertising, and receiving deposits as savings bank or trust company
prohibited.
The laws of this State do not contain any provisions with reference to the organization or establishment of private banks or bankers,
except as indicated in last paragraph hereof, and except for the prohibitions embraced in the following provisions, the laws are silent
with regard to the operation of such banks or bankers. The following
provisions prohibit the receipt of deposits as a sayings bank or trust
company, and the use of any advertising or banking terras indicating
that the place of business or the business carried on is that of a
savings bank or trust company, by any person, partnership or association other than savings banks and trust companies incorporated under
the laws of Massachusetts.
Prohibition against receipt of certain deposits and use of specific
banking terms and other advertising.
" * * * no person, partnership or association except sayings
banks and trust companies incorporated under the laws of this commonwealth", and certain foreign banking corporations, shall hereafter
make use of any signs or other advertising indicating that the place
of business or business transacted is that of a savings bank; "nor
shall any 3uch * * * person, partnership or association, * * * solicit
or receive deposits or transact business in the way or manner of a
savings bank, or in such a way or manner as to lead the public to believe, or as in the opinion of the commissioner might lead the public
to believe, that its business ia that of a savings bank; nor shall any
person, partnership, * * * or association, (excepting certain institutions not connected with or related to private banks or bankers) * * *




— I & Cf ~

-X-GQ18""*

hereafter transact 'business under any name or title which contains the
word 'hank1 or '"banking', or any word in a foreign language having the
same or similar meaning, as descriptive of said "business, or, if he or
it does a banking "business or makes a business of receiving money on
deposit, under any name or title containing the word 'trust', or any
word in a foreign language having the same or similar meaning, as
descriptive of said business." (General Laws, ch. 167, sec. 12; as
amended Act 1921, ch. 78, sec. 1; Act 1922, ch. 114; Banking Law
Pamphlet Delating to Savings Banks , 1929, ch. 167, sec. 12, p. 4.)
Bank Commissioner may examine books, accounts, etc. to ascertain whether
law is being violated.
"The commissioner or his examiners may examine the accounts, books
and papers of any * * * person, partnership or association making a
business of receiving money on deposit, or which has the word 'bank',
'banking', 'banker', 'bankers', or 'trust', or any word in a foreign
language having the same or similar meaning, in the name under which
its business is conducted, in order to ascertain whether such * * *,
person, partnership or association has violated or is violating any
provision of the preceding section; and any * * *, person, partnership or association refusing to allow such examination or violating ,
any provision of said section shall forfeit to the commonwealth one
hundred dollars a day for every day or part thereof during which such
refusal or violation continues." (General Laws, ch. 167, sec. 13;
as amended Acts 1921, ch. 78, sec. 2; Banking Law Pamphlet Relating
to Savings Banks, 1929, ch. 167, sec. 13, p. 4.)
Commissioner shall report violations to Attorney General; procedure to
restrain violation.
Any refusal to permit such an examination, or any violation of
the provisions first above quoted "shall forthwith be reported by the
commissioner to the Attorney General. The said forfeiture may be recovered by an information or other appropriate proceeding brought in
the Supreme Judicial or Superior Court in the name of the AttorneyGeneral. Upon such information or other proceeding the court msy issue
an injunction restraining such * * * , person, partnership or association from further prosecution of its business within the coramo:::v.Tealth
during the pendency of such proceeding or for all time, and may make
such other orders or decrees as equity arid justice may require."
(General Laws, ch. 167, sec. 13; as amended Acts 1921, ch. 78, sec. 2;
Banking Law Pamphlet Relating to Savings Banks, ch. 167, sec. 13, p. 4.)
Further prohibition against use of term "Trust Company" or receiving
deposits as trust company.
"No person or association and no bank or corporation, except
trust companies, shall use in the name or title under which his or its
business is transacted the words 'Trust Company' even though said words




may be separated in such name or title by one or more other words, or
advertise or put forth a sign as a trust company or in any way solicit
or receive deposits as such. Whoever violates this section shall forfeit one hundred dollars for each day during which such violation continues." Certain foreign corporations are excepted from the provisions of this section. (General LawB, ch. 172, sec. 4; as amended
Acts 1923, ch. 41; Trust Company Law Pamphlet, ch. 172, sec. 4, p. 15.)
Persons engaged in the receipt and transmission of funds to foreign
countries.
Persons engaged in the "business principally or in conjunction
with that of selling railroad or steamship tickets or in the supplying
of laborers, receiving deposits for safe keeping or transmitting the
same or equivalents to foreign countries shall, "before engaging or
becoming financially interested or continuing to engage or be financially interested in the business of receiving deposits of money for
the purpose of transmitting the same or equivalents thereof to foreign
countries, make, execute and deliver to the state treasurer a bond in a
sum equal to twice the amount of money or equivalents thereof transmitted
to foreign countries by such person in any one week, as determined by the
commissioner of banks, in this chapter called the commissioner, but in no
event shall the sum of the bond be less than fifteen thousand dollars; provided, that the sura of such bond shall be increased on order of the commissioner at any time to such amount as shall be shown by examination to
be necessary. Said bond shall be conditioned upon the faithful holding
and transmission of any money or equivalents thereof which shall have
been delivered to such person for transmission to a foreign country,
and, in the event of the insolvency or bankruptcy of the principal,
upon the payment of the full amount of such bond to the assignee, receiver or trustee of the principal, as the case may require for the
benefit of such persons as shall have been delivered money or equivalents thereof to said principal for the purpose of transmitting the
same to a foreign country." (Acts 1923, ch. 473, sec. 2; Acts 1929,
ch. 182, sec. 2.)
MICHIGAN.
Private banks expressly prohibited; exception.
"On and after the effective date of this act (1925), it shall
be unlawful for any individual person, or unincorporated association
of individual persons, to engage in the business of banking, * * *:
Provided, That this act shall not apply to any individual person or
unincorporated association of individual persons engaged in the business of banking at the time of the passage of this act." (Public Acts
of 1925, Act No. 284, sec. 1; Banking Laws, 1929, sec. 364, p. 105.)
Penalty for establishment of private bank.
"Prom and after the passage of this act, no person or association of persons, not incorporated under the banking laws of this State




~,tfi -

-x-esig

and not now engaged in the private banking "business, shall; open up or
attempt to operate any private "bank, and any such operation or attempt
shall " e deemed a violation of this act, and the persons so operating
b
or attempting to operate shall be deemed guilty of a felony, and on conviction thereof shall be punished by a fine not exceeding one thousand
dollars or by imprisonment in the State prison for not more than five
years, or by both such fine and imprisonment in the discretion of the
court: Provided, That nothing in this act contained shall be construed
to prohibit the surviving partner or partners of a copartnership from
continuing the operation of any private bank operated by such copartnership at the time this act shall take effect." (Public Acts of 1925,
Act Ho. 284, sec. 2; Banking Laws, 1929, sec. 365, p. 105.)
MI1MES0TA.
"Individual or co-partnership" prohibited from transacting business of
savings bank, safe deposit company or trust company.
From the following provisions, it appears that "a person, firm,
individual or copartnership" is prohibited from advertising or engaging in business in any way as a savings hank, safe deposit company or
trust company.
Provisions prohibiting business as savings bank, etc.
"No individual, co-partnership or corporation other than a savings bank or safe deposit and trust company subject to and complying
with all the provisions of law relating to such bank or safe deposit
and trust companies respectively, shall in any manner display or make
use of any sign, symbol, token, letterhead, card, circular, advertisement stating, representing or indicating that he, it, or they, are
authorized to transact the business which a savings bank, safe deposit
or trust company usually does, or under said provision are authorized
to do; nor shall ;iny such individual, co-partnership or corporation
use the words 'savings' or 'trust' or 'safe deposit' alone or in combination in title or name or otherwise or in eny manner solicit business
or make loans or solicit or receive deposits or transact business as a
savings bank or safe deposit or trust company. * * . Every individual,
co-partnership or corporation which shall violate any of the provisions
of this section shall forfeit to the State the sum of one hundred dollars for every day such violation shall continue." (Act approved March
21, 1929, Laws of 1929, ch. 77, sec. 1; Banking Laws, 1929, sec. 1, p.
13.)
"Bank", "savings bank", "trust company" and "banking" defined.
"A bank is a corporation under public control, having a place of
bxisiness where credits are opened by the deposit or collection of money
and currency, subject to be paid or remitted upon draft, check, or order,
and where money is advanced, loaned on stocks, bonds, bullion, bills of
exchange, and promissory notes, and where the same are received for discoxmt
or sale; and all persons and co-partnerships, respectively, so operating,
are bankers.




~-fiA

'

X-001B'

.«. 0,3 , .
.
"A savings bank is an institution under like control, managed bydisinterested trustees solely authorized to receive and safely invest
the savings of small depositors.
"A trust company is a corporation under like control, authorized,
within prescribed limitations, to act as a safe deposit company, trustee
or representative for or under any court, public or private corporation,
or individual, and as surety or guarantor." (General Statutes, 1923,
sec. 7635; Banking Laws, 1929, p. 7)
"A 'bank' is a corporation having a place of business in this
State, where credits are opened by the deposit of money or currency,
or the collection of the same, subject to be paid or remitted on draft,
check or order; and where money is loaned or advanced on stocks, bonds,
bullion, bills of exchange or promissory notes, and where the same are
received for discount or-sale. A 'savings bank' is a corporation
managed by disinterested trustees, solely authorized to receive and
safely invest' the savings of small depositors. Every 'bank' or 'savings bank' in this State shall at all times be under the supervision
and subject to the control of the public examiner, (superintendent of
banks) * * * and 'when so cond;icted said business shall be known as
'banking'." (General Statutes, 1923, sec. 7636; Banking Laws, 1929,
p. 8).
Restriction against use of word "bank".
"Any person, firm or corporation carrying on in this State the
business, or any part thereof, defined as 'banking' in the preceding
section, who refuses to permit the public examiner (superintendent of
banks) to inspect and superintend said business, and to see that the
same is carried on in accordance with the banking laws of this State
shall not be permitted to use the word 'banlc' as the whole or any part
of the business name of the place where said business is carried on,nor shall the word 'bank' be used on any stationery or in any advertisement of said business, as the whole or any part of the name or description of said business." (General Statutes, 1923, sec. 7637; Banking Laws, 1929, p. 8.)
MISSISSIPPI.
Banking business may only be transacted by corporations.
The laws of this State provide that "any person or firm now
engaged in the banking business" as described below, "shall incorporate
within six months after this (banking) act goes into effect. This section shall not apply except when such corporations keep the actual money
on deposit or solicit outside deposits, but any person or association of




X-6813,
"persons now engaged in the banking business in this State shall " e subject
b
to all the provisions of this ("banking) act until such person, persons
or associations of persons shall he or "become incorporated as provided
in this section". Any person or firm is doing a banking "business, under
the Mississippi laws, when he or it has "a place of "business within ,
this state, where credits are opened "by the deposit or collection of
money or currency or negotiable paper subject to " e paid or remitted
b
upon draft, receipt, check or order, or sale-of drafts or exchange
drawn on local or foreign banks, *** ". (Laws of 1914, ch. 124, sec.
27; Brown's Miss, and Fed. Stats., 1925, sec. 27, p. 43 ).

MISSOURI.
Private "banks may not now he established.
By an act eaacted in the year 1915, this state prohibited the
establishment of new private banks,.the pertinent provision stating
"that hereafter no new private bank shall be established". This act
also contains detailed provisions covering the organization, operation
and supervision of banks and apparently permitted private banks who were
engaged in a banking business at the time of its passage to continue the
operation of such business upon complying with the provisions covering
incorporated banks so far as the same are applicable."
In addition,
the act contains provisions specifically applicable to private banks,
these provisions being set forth below.
Definition of "private bankers".
"Private bankers are declared to be those who carry on the
business of banking by receiving money on deposit, vrith or -.vithout
interest, by buying and selling bills of exchange, promissory notes,
gold or silver coin, bullion, uncurrent money, bonds,or stocks, or
other securities, and of loaning money, without being incorporated."
(Laws of 1915, p. 157; Hev. Stats, of Mo. , 1929, sec. 5403; 3anking
Laws, 1919, sec. 11781, p. 88.)
Capital requirements.
A private banker could not engage in business "without a paidup capital of not less than ton thousand dollars, and if said banking
business is to be carried on in a city having a population of one hundred
and fifty thousand inhabitants or liiore, then without a paid-up capital of
not less than one hundred thousarid dollars, * * * " . (Laws of 1915, p.
157; Rev. Stats, of Mo., 1929, sec. 54Q4; Banking Laws, 1919, sec. 11782,
p. .88.)
Sworn statement necessary; contents of
Before engaging in business a orivate banker also had to file
"a statement, subscribed and sworn to as correct and true before a
notary public by each person connected vith such business as owner or
partner, setting forth: First, the names and places of residence of all




'

- X-0Q18"

JS-45—-

"persons interested in the 'business, all of whom shall "be residents of this
state, the amount of capital invested; and second, the name in which the
"business is to "be conducted and the place at which it is to he carried on;
which statement shall he acknowledged, recorded in the office of the recorder of deeds of the county in which the hank is to he located, and a
certified copy of such recorded instrument shall he filed in the office
of the bank commissioner: * * *". (Laws of 1915, p. 157; Rev. Stats, of
Mo., 1929, sec. 5404; Banking Laws, 1919, sec. 11782, pp. 88 and 89).
Cashier must give "bond; condition of.
"The cashier of each private hank shall give "bond to the state
of Missouri, for such sum, and conditioned, as may he required "by the
commissioner, which shall he approved hy the commissioner, and filed in
his office." (Laws of 1915, p. 158; Rev. Stats, of Mo., 1929, sec. 5407;
Banking Laws, 1919, sec. 11785, p. 90).
License fee or tax.
"No private hanker * * *, after having made, recorded and filed
the statement required hy this article, shall he required to pay any
license or tax not required of hanks." (Laws of 1915, p. 158; Rev. Stats.
of Mo., 1929, sec. 5408; Banking Laws, 1919, sec. 11786, p. 90.)
Provisions covering incorporated hanlcs made applicahle.
All of the provisions of law covering the organization, operation
and supervision of incorporated hanks "shall, so far as the same are applicahle, apply to all private hankers doing business in this State; * * *
(Laws of 1915, p. 158; Rev. Stats, of Mo., 1929, sec. 5407; Banking Laws,
1919, sec. 11785, p. 90)
Loan on personal security of owner in excess of 10$ of capital prohibited;
violation cause for appointment of receiver.
A private hanker cannot make any loan or discount on the personal security or ohligation of any owner in excess of ten per cent of the
paid up capital and surplus of the hank. A violation of this prohibition
empowers the hank commissioner "in his discretion, to make application
for the appointment of a receiver for such private bank or hanker, as now
provided hy law in case of insolvent hanks and trust companies." (Laws of
1915, p. 157; Rev. Stats, of Mo., 1929, sec. 5405; Banking Laws, 1919, sec.
11783, p. 89).
Restriction upon use of funds.
fl

No private hanker shall employ any part of >his capital, or any
funds deposited with or borrowed hy him, in dealing or trading in, "buying
or selling lands, goods, chattels, wares or merchandise, hut he may sell
and dispose of all kinds of property which may necessarily come into his
possession in the collection of his loans or discounts." (Laws of 1915, p.
158; Rev. Stats, of Mo., 1929, sec. 5406; Banking Larrs, 1919, sec. 11784,
p. 89.)




"fj^"

X 6818

Loans to one borrower and other use of funds.
A private "banker may not "use or employ M a capital or funds deposited with or "borrowed by him in any other manner than banks are * * *
permitted, or loan a greater amount to any person or loan any sum whatever,
except upon like security as is required to be taken by banks." (Laws of
1915, p. 158; Rev. Stats, of Mo., 1929, sec. 5406; Banking Laws, 1919, sec.
11784, p. 89).
Surplus of 30$ of capital required before profits may be distributed.
The profits of a private banker may not be distributed "without
first setting apart to surplus accounts at least twenty per cent of the
net profits each year until the surplus equals twenty per cent of the
capital, and said surplus shall not be diminished except for the payment of
any losses which may occur; Provided, if there are undivided profits, those
shall first be used in payment of such losses," (Laws of 1915, p. 158;
Eev. Stats, of Mo., 1929, sec. 5406; Banking Laws, 1919, sec. 11784, p. 89.)
Penalty for violation of provisions.
Any private banker who fails to make and file the statement required of incorporated banks or so much thereof as the bank commissioner
may require "or shall fail or refuse to make or render any other report
or statement required by the banking laws of this state, or who shall,
wilfully and corruptly, make any such statement falsely, or who shall
violate any of the provisions of this article (covering incorporated and
private banks), he or they, and each of them shall be deemed guilty of
a misdemeanor, and, upon conviction thereof, xipon information or indictment, shall be punished by a fine, for each offense, not exceeding five
thousand dollars nor less than five hundred dollars, or by imprisonment
not less than one nor more than twelve months in the city or county jail,
or by both such fine and imprisonment." (Laws of 1915, p. 158; Eev. Stats.
of Mo., 1929, sec. 5407; Banking Laws, 1919, sec. 11785, p. 90.)
"If at any time the commissioner shall be satisfied that any private
banker * to which has been issued an authorization certificate or license,
is violating any of the provisions of this chapter, or is conducting its
busihess in an unauthorized or unsafe manner, or is in an unsound or unsafe condition to transact its business, or cannot with safety and expediency continue business, the commissioner may, over his official signature
and seal of office notify the holder of such authorizetion certificate
or license that the same is revoked." (Eev.. Stats, of Mo., 1929, sec.
5399).
MONTANA.
Banking business may only be transacted by corporations; exception.
The laws of this state provide that "It shall be unlawful for
any corporation, partnership, firm, or individual to engage in or trans- "




act a 'banking business within this state* except by means of a corporaation duly organized for such purpose. * * ' this (hank) let shall not
*
apply to any person, firm or association now doing a private hanking
business; provided, however, that said private banks hereinabove referred
to shall come under all of the provisions of this Act which may be fairly
applicable thereto; * * * fl. (Laws of 1927, ch.89, sec. 2; Banking Laws,
1927, sec. 2, p. 8)




Advertising befoi'e issuance of charter; penalty
" I t s h a l l bo unlawful for any individual, firm or corporation
to a d v e r t i s e , publish or otherwise promulgato tliat i t i s engaged in th©
hanking business without f i r s t having obtained authority from the Department of Banking, * * * . Any such individual, or member of such
firm, or officer of any such corporation so offending, s h a l l be deemed
g u i l t y of a misdemeanor, cad upon conviction thereof, s h a l l be punished
as providod by the laws of this S t a t e . " (Lavs of 1927, ch. 89, sec.
107; Banking Laws, 1927, boc. 107, p . 60 )
As s t a t e d above, p r i v a t e bankers who rore engagod in the t r a n s action of a banking business as of the passage of tho so-called bank
act,.March 8, 1927, are required to comply with such provisions of tho
bank act as "may be f a i r l y applicable thereto". The bank act also contains other provisions which are s p e c i f i c a l l y applicable to these p r i vate bankers, those provisions being s e t forth below.
Namo of p r i v a t e bank.
The name of a privato bank must contain tho name of the individual conducting the business, or, i f a copartnership or association, tho .
name of a t l e a s t one actual and responsible member thereof, "in addition
to which name thoro s h a l l be no otner designation then the words 'bank o f ,
'Banking house o f
' b a n k e r ' , or ' b a n k e r s ' . Nothing in this section
s h a l l apply to any person, firm or association now conducting a p r i v a t e
banking business i n t h i s s t a t e , which bank i s now authorized by tho
State Banking Department to do a banking business". (Laws of 1927, ch.
89, s e c . 82; Banking Laws, 1927, s e c . 82, p . 52 ) .
"Approved -property or* offsets" must be owned before deposits may be received,.
Every p r i v a t e bank must before receiving any money on deposit
" a c t u a l l y own and possess, within the State of Montana, approved p r o p e r t y or a s s e t s not exempt from execution of tho minimum value" of not
l e s s than $20,000; not loss than $30,000 in c i t i e s and towns having a
population of over 2,000 and up to 5,000; not loss than $50,000 i n c i t i e s
having a population of 5,000 to 10,000; not less than $75,000 in c i t i e s
having a population of 10,000 to 25,000; in a l l c i t i o s having a population of 25,000 or over tho"value of tho property or assets must be
$100,000. This financial condition mut'-t appear and be carried on tho
books of every p r i v a t e bank and these provisions "shall extend and be
applicable separately to each and every private bank conducted by any
person, co-partnership, or association, and no a s s e t .or a s s e t s s h a l l
appear on the books of more than one bask." (Laws of 1927, ch. 89, sec.
83; Banking Laws, 1927,• sec. 83, p . 5 3 . ) .
Examinations; -power of State Examiner.
Every p r i v a t e bank "shall be subject to examination and v i s i t a tions of the State Examiner once each year, and oftener when deemed




m 49' ••
'-

XU681I2I

"necessary " y said examiner, who shall have full power and authority to
b
investigate and examine all books', papers, and effects of any such hank
or banking house for the purpose of ascertaining the financial condition
of any such bank or ba.^ks, and shall have the power in aid- thereof to
administer oaths to any person or persons, or the agent or employees of
any nerson or persons conducting surfi bank or banking business." (Laws
of 1927, ch. 89, rec. B4; ranking Laws, 1927, sec. 84, p. 53 ) .
aeports of condition; -lumber and nature 3f; publication required*
The cashier of every private bank is required, on call of the
superintendent of banks, to make not less than three reports of condition during each year, anyone of which must be not less than two
months apart. These reports must be verified by the cashier, must be
made in such form as the superintendent may prescribe, and must contain
a full abstract of the general accounts of the bank and show under appropriate heads the resources and liabilities of the bank. A condensed
form of each report must be published in the newspapers and proof of
such publication is required to be made to the superintendent. The
superintendent also has power to call for special reports whenever he
considers that such reports are necessary. (Laws of 1927, ch. 89, sec.
8 6 Banking Laws, 1927, sec. 86, p. 54 ).
.;
Penalty for receiving deposits while b.-mk is t R l .i r t or for -.raking
nO-rs,
false statements or entriea.
Any person, or the members of any privato bwnk, who receives
deposits when such person or private bank is insolvent "or who subscribes or makes any false statement, or entries in the books of any
such bank, or who knowingly subscribes or exhibits any false papers,
with the intention of deceiving any person authorizing (authorized) to
examine the condition of any bank provided for in this Act, or who wilfully subscribes or makes false reports to the Superintendent of Banks,
shall be guilty of a felony, and shall be punishable by imprisonment
in the State prison for a uerm not exceeding five (5) years." (Laws of
1927, ch. 89, sec. 87; Banking La«rs, 1327, sec. 37, p. 55 ).
Pledging of assets.
"JTo * * * banker * * * shall, except aa otherwise authorized by
law, pledge or hypothecate as collateral security for money borrowed,
its assets in a ratio exceeding one and one half times the amount borrowed (except as otherwise authorized by the Superintendent)." (Laws of
1927, ch. 89, sec. 99; Banking Laws, 1927, • sec/99, p. 58 ).
Taxation of private banks.
The laws of this state also contain detailed provisions covering the taxation of private banks. (Laws of 1927, ch. 64, sec. 1;
Banking Laws, 1927, sec. I"(3067), pp. 78 and 79 ) .




NSBBASKA.
Banking "business may only be transacted l y corporations.
a
The laws of this State provide that the business of hanking may
only be transacted by corporations duly organized for that purpose. The
provisions in this connection read as follows:
"The department of trade and commerce shall have general supervision and control of banks and banking under the laws of this state and
no person or persons shall be permitted to engage in or transact a banking business save corporations having complied with the provisions of
this article." (Comp. Stat, of Nebraska, 1922, sec. 7982; Banking Laws,
1929, sec. 7982, p. 3 ) .
"It shall be unlawful for any corporation, partnership, firm or
individual to engage in or transact a banking business within this state,
except by means- of a corporation duly organized for such purpose under
the laws of this state." (Comp. Stat, of Nebraska, 1922, soc. 7984;
Banking LOTS,-1929, sec. 7984, p. 3 ).

.IMAM.
Private banking business must be licensed; provisions of bank act applicable.
In order to engage in the business of banking in this State a
private banker must obtain a license to do so and is subject "as far as
may be" to the provisions of law covering incorporated banks.
Necessity for license.
"No individual, *** banking firm, *** company, *** shall engage
in the banking business in this state without first obtaining from the
bank examiner a license in the form presented by him, authorizing such
individual, firm, *** company, *** to use the name and transact the
business of a bank; ***" (Act of March 22, 1911, sec. 47; Banking Laws,
1930, sec. 47, p. 16 ).
Subject to supervision and control of State banking board and bank
examiner; bank act made applicable^
"The state board of finance, sitting as the Nevada state banking board, shall have, in connection with the state bank examiner,
supervision and control of banks and banking in this state, and no persons, firms, associations, or corporation^ shall be permitted to engage
in the banking business in this state, save in compliance with this
(bank) act." (Act of March 22, 1911, sec. 49, as\ amended by Laws of
1919, p. 285; Banking Laws, 19S0, aec. 49, p. 16 ) . The laws also




—-^&-t>

-

61 •»

X-6618

provide t h a t "All of the provisions of this ("bank) a c t shall he a p p l i c a h l e as far as may he to i n d i v i d u a l s ^ firms, or a s s o c i a t i o n s , as well as
to corporations." (Act of March 22, 1911, s e c . 8; Banking Laws, 1930»
s e c . 8, p . 6 ) .
Definition of words used in hank a c t .
"The words • c o r p o r a t i o n , ' 'honking c o r p o r a t i o n , ' ' h a n k ' , ' t r u s t
company,' or ' h a n k e r ' , as used i n t h i s (hank) a c t , s h a l l r e f e r to and
include hanks, savings hanks, and t r u s t comoanios, i n d i v i d u a l s , firms,
a s s o c i a t i o n s , and corporations of any character conducting the "business
of receiving money on deposit or otherwise carrying on a hanking or
t r u s t company "business, except as herein s p e c i a l l y provided." (Act of
March 22, 1911, s e c . 75; Banking Laws, 1927, soc. 75, p . 23 ) .

mm HAMPSHIBE.
Private hanks subject generally to hanking and taxation laws.
The laws of this State provide that "Every association or partnership formed for the purpose of loaning money or dealing in money, receiving deposits, "buying or selling exchange or transacting such other
husiness as is usually transacted hy hanks, shall he a hank for'the general purposes of this title and for taxation. The clerk or cashier of
every such hank shall make the same returns to towns where its stockholders reside as the cashiers of other hanks are hy law required to
make." (Puhlic Stats., ch. 164, sec. 5; Public Laws, 1926, ch. 260,
sec. 24; Banking Law Pamphlet, 1929, ch. 261, sec. 24, p. 9 ) .
"This title" (XXVI) is that portion of the laws of Hew Hampshire
relating to and covering the operation of hanks, savings hanks, and
trust companies; and, apparently,the provision above quoted recognizes
a private hanking husiness, hut requires such husiness to he conducted
in accordance with the provisions of the laws relating to incorporated
hanking institutions and the taxation thereof, in so far as it is possible generally so to do* In addition, the laws contain certain provl*
sions which are specifically applicable to private hanks. These pro*
visions are set out helow.
Owners deemed stockholders; capital for, taxation purposes.
"Every person owning any portion'of the funds employed in any
private hank shall " e deemed a stockholder therein. The average amount
b
of the capital of such private hank during the preceding year shall be
the capital of such hank subject to taxation as stock." (Public Stats.,
ch, 164, sec. 6; Public Laws, 1926, ch. 260, sec. 25; Banking Law Pamphlet, 1929, ch. 250, sec. 25, p. 9 ) .




— =2o f -

Liability of stockholders.
"The stockholders of any private bank shall be liable as partners for all the debts and obligations of the bank." (Public Stats.,
ch. 154, sec. 7; Public Laws, 1926, ch. 250, sec. 26; Banking Law Pamphlet, 1929, ch. 260, sec. 26, p. 9).
Prohibition against advertising or transacting business as sayings bank.
No person, partnership or association, "except savings institutions incorporated in this state", can make use of any sign or other
form of advertising indicating that the place of business or business
carried on is that of a savings bank, or "receive deposits and transact
businass in the way or manner of a savings bank, or in such a way or
manner as to lead the public to believe, or, in the opinion of the commissioner, might lead the public to believe", that the business is that
of a savings bank. (Laws of 1907, ch, 112, sec. 2; Public Laws, 1926,
ch. 261, sees, 53-55; Banking Law Pamohlet, 1929, ch. 261, sees. 53-55,
p. 18).
" •
Examination to ascertain whether above provision is being violated.
"The commissioner shall have the authority to examine the
accounts, books and papers of any ***, person, partnership or association which makes a business of receiving money on deposit in order to
ascertain whether they have violated" the provisions last above referred to, and a penalty is prescribed for any such violation. (Laws
of 1907, ch. 112, sec. 3; Public Laws, 1926, ch. 261, sees. 56 and 57;
Banking Law Pamphlet, 1929, ch. 261, sees. 56 and 57, p. 19).
Hecovery of penalty and injunction to restrain further prosecution of
business.
"Any violation of *** (such) provisions *** shall forthwith
be reported by the commissioner to the Attorney General; and the forfeiture may be recovered by an information or other appropriate proceeding brought in the superior court in his name, Upon such information or other proceeding the court may issue an injunction restraining
such person, partnership, *+* from further orosecution of its business
within this state during the pendency of such proceeding or for all
time, and may make such other order as justice may require." (Laws
of 1907, ch. 112, sec. 3; Public Laws, 1926, ch. 261, sees. 58 and 59;
Banking Law Pamphlet, 1929, ch. 261, sees. 58 and 59, p. 19).
Treasurer of savings bank shall not carry on private banking business.
"Ho treasurer or person acting as treasurer of a savings
bank shall carry on or be engaged in the business of private banking, or shall suffer such business to be carried on in the office
of the bank", and if any person violates these provisions "he shall
be fined not more than one thousand dollars, or imprisoned not more




— uu •
»
than one year or both11.

(Public taws

3f— 0818
1626, ch. 261, sees. 4 and 5.).

NOT JERSEY
Penalty for carrying on banking business without authority.
"No individual, association of individuals, -oartnership or
joint stock association, shall engage in the business of banking,
except under and in accordance with the provisions of this act, unless possessed of unencumbered assets of at least fifty thousand dollars, and that any such individual, association of individuals, partnership or joint stock association and the individual members thereof,
who shall violate the provisions of this act and carry on the business
of banking without authority, shall be guilty of a misdemeanor, and
upon conviction thereof shall be punished by a fine not exceeding
five thousand dollars, or by imprisonment at hard labor for a term
not exceeding seven years, or both." (Laws of 1925, ch. 189, p.
454; Cora?. Stat, of N. J"., Supplement, 1925-1930, Sec. 17-44.).
Private banker must be a citizen of the United States and at least
one member of the firm must reside in State.
"No individual or individuals shall engage in the business of banking who are not citizens of the United States, and no
individual, association of individuals, partnership or joint stock
association, shall engage in the business of banking within this
State unless one or more of the persons so engaged shall be residents
in and inhabitants of this State, and for every violation of the
provisions of this section, the person or persons so offending
shall be deemed guilty of a misdemeanor, and upon conviction thereof shall be liable to a fine of not more than one thousand dollars,
and in all reports that shall be made by such individual, association of individuals, partnership or joint stock association, the
full names and places of residence of each of the persons so interested shall be fully set out." (Laws of 1925, ch. 189, p. 454; Comp.
Stat, of N. J., Supplement, 1925-1930, Sec. 17-47.).
Insolvency, etc.; commissioner.may apply for injunction or receiver.
In case it appears from any report made by or any examination of any private bank that such bank is insolvent or is
unable to pay its obligations as they severally mature, or is
unable to pay its depositors the money held by it on deposit whenever called upon so to do, or shall suspend its ordinary business
for want of funds to carry on the samp, or shall not be possessed
of unencumbered assets of at least fifty thousand dollars in excess of its liabilities, the commissioner, or any creditor of the
bank, may apply "to the chancellor" for an injunction or the appointment of a receiver. If after a hearing, it appears to the chancellor
that the private bank is insolvent, or is. not able to resume business




-.20.3

~

•W-64-B.

8-66*3-

with safety to the public and adtfa&tage to the creditors, or is
not possessed of unencumbered assets of at least fifty thousand
dollars in excess of its liabilities, the chancellor may issue an
injunction to restrain such private hank from further carrying on
business, and if insolvent, from collecting or receiving any debts,
or from paying out, selling, assigning or transferring any of the
assets, moneys, funds, lands, tenements or effects belonging to it,
until the court otherwise orders. (Laws of 1925, ch. 189, p. 455;
Comp. Stat, of JT. J., Supplement, 1925-1930, Sec. 17-48.).
Certificate of authority necessary to engage in business; examination
by commissioner.
"Ho Individual, association of individuals, partnership
or joint stock association shall engage in the business of banking in this State unless authorized thereunto by the commissioner
of backing and insurance by his certificate to that effect, and
such certificate shall not be made or issued by the said commissioner until after the said individual, association of individuals,
partnership or joint stock association, shall have made to him the
report or reports required by this act; and not until after the
said commissioner of banking and insurance, or some person appointed by him, shall have made an examination of the affairs and financial condition of such individual, association of individuals,
partnership or joint stock association, from which it shall appear
to said commissioner that he or they are then solvent and able to
pay his or their debts at maturity, and are possessed of unencumbered assets of at least fifty thousand, dollars in excess of his or
their liabilities; provided, the commissioner of banking and insurance may refuse to issue such certificates of authorization if in
his judgment the interests of the public would be best subserved
by such refusal;" (Banking Laws of 1925, ch. 189,. p. 455; Comp.
Stat, of II. J., Supplement, 1925-1930, Sec. 17-51.).
Advertisements indicating banking business.
"that no individual, association of individuals, partnership or joint stock association, not authorized under this act to
do a banking business, shall make use of any office sign at the
place where his or their business is transacted, having thereon
any artificial or corporate name or other word or words indicating that such place or office is the place or office of a bank,
nor in any manner advertise that he or they are engaged in a banking business, nor make use of or circulate any letterheads, billheads, blank notes, blank receipts, certificates, circulars or any
written or printed or partly written and partly printed paper whatever, having thereon any artificial or corporate name or any other
word or words indicating that his or their business is that of a
bank."
(Laws of 1925, ch. 189, • . 456, Comp. Stat, of N. J.,
>
Supplement 1925-1930, Sec. 17-51.').




--.zoy
-^»6-*.

X--6818

N W MEXICO .
Provisions of "bank act" made applicable to "individuals and copartnerships."
The laws of this State provide that "This act shall be i n v a
zor
as the 'Bank Act' and shall be applicable to all corporations, individuals and copartnerships specified in the next section, except as
hereinafter specifically excepted." (Laws of 1915, ch. 67, sec. 1;
Few Mexico Stats. Ann., 1929, sec. 13-101; Hew Mexico Bank Code, 1929,
sec. 1, p. 5.).
The "next section" referred to sets out that "The
word 'Sank' as used in this (bank) act includes every person, firm,
company, copartnership or corporation, except National Banks, engaged in the business of banking in the State of New Mexico." (Laws
of .1915, ch. 67, sec. 2; New Mexico Stats. Ann., 1929, sec. 13-102;
New Mexico Bank Code, 1929, sec, 2, p. 5). The bank act provides
further that "When by the provisions hereof anything is required
to be done by any incorporated bank, or other corporation, carrying on a banking business under any of the provisions of this act,
or by the Board of Diractors of any such incorporated bank or corporation, or any officer, director or employee thereof, or their
right or power to do a specific act is denied, the same act shall
be done, or not, as the case may be, by individuals or copartners
engaged in the banking business," (Laws of 1915, ch. 67, sec. 7;
New Mexico Stats. Ann., 1929, sec. 13-107; New Mexico Bank Code,
1929, sec. 7, pp. 5 and 6.).
It would appear, therefore, that these.provisions have
the effect of subjecting persons, firms, copartnerships and unincorporated banks to the same provisions as are made applicable to
incorporated banks. In addition the bank act makos the following
requirements specifically applicable to private banks}
Private bankers engaged in other business in addition to that of banking; capital required; separation of capital; payment of creditors;
manner of keeping books; bank act requiraironts covering reserves, deposits, investments, etc., made applicable.
"All persons, (and) co-partnerships * * * engaged in business, a portion only of which is banking, shall sat apart and keep
separate so much capital for banking as may be necessary for conducting a bank * * *.
The capital so set apart and the assets of said
bank or banking department shall be first applicable to the payment
of the creditors thereof, as distinguished from the general creditors of the persons, (or) co-partnerships * * * conducting the same.
Every person, (or) co-partnership * * * so carrying on a banking
business in connection with any other business shall keep separate
books of account for each banking business, and shall be governed
as to all deoosits, reserves, investments and transactions relating
to such banking business,, by the provisions of this act provided for




«—BO' * '
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X-081'2 -

the control o f such b a n k i n g business,- a n d w i t h respect to s a i d b a n k ing b u s i n e s s o r b a n k i n g department snail b e subject to all t h e p r o -

visions of this act," (Laws of 1§15, ch. 57, sec. 9; New Mexico
Stats. Ann., 1929, sec. 13-109; New Mexico Bank Code, 1929, sec.
9, p. 6.).
Certified statement as to capital stock, names and residences of copartners, amount of capital owned by each.
The bank act provides that "any individual or co-partnership
desiring to conduct a banking business shall file in the office of the
State Bank Examiner and of the State Corporation Commission a similar
statement" as that filed by a corporation. The laws with reference to
the statement filed by-a corporation provide that "As soon as ten per
cent of the capital stock and surplus of the corporation shall be fully paid in cash, a copy of the by-laws of said bank and the oaths of
its directors shall be filed in the office of the State Bank Examiner
and of the State Corporation Commission, together with a statement
executed on behalf of the corporation and sworn to by its president,
and cashier or secretary, certifying: the full amount of the entire
capital stock of said corporation subscribed; the names and residences
of the officers, directors and stockholders of said corporation; the
amount of stock owned by each, and the fact that such corporation will
be fully prepared to transact the business for which it was organized,
upon the payment in cash of the remaining ninety per cent of the capital stock and surplus." (Laws of 1929, ch. 131, sec, 5; New Mexico
Stats. Ann., 1929, sec. 13-113; New Mexico Bank Code, 1929, sec. 13,
p. 7 ).
Word "State" may not be used as part of title.
"Individuals and co-partners engaged in banking shall not
use the word 'State' as part of the name of the banking business."
(Laws of 1919, ch. 120, sec. 4; New Mexico Stats. Ann., 1929, sec.
.13-114; New Mexico Bank Code, 1929, sec. 14, p. 8).
Ownership of stock by co-partners.
"Co-partners conducting a bank shall each own at least ten
per cent" of the stock of the firm. (Laws of 1929, ch. 131, sec. 6;
New Mexico Stats. Ann., 1929, sec, 13-117; New Mexico Bank Code, 1929,
sec. 17, p. 9).
Oath required of owners.
Every owner of an unincorporated bank, actually engaged in
its management, shall annually make an oath that he will diligently
and honestly administer the affairs of the bank; that he will not
knowingly violate, nor willingly permit to be violated, any provision
of the law; and that he is the owner in good faith of the required
amount of Capital and that this capital is not pledged or incumbered.




— jzot

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X 601fr

The State Bank Examiner furnished blanks for such oath and within
twenty days after execution it must be filed with the State Bank
Examiner* (Laws of 1919, ch. 120, sec. 8; New Mexico Stats. Ann.,
1929, sec. 1.3-119; New Mexico Bank Code, 1929, sec. 19, p. 9.).
Penalty for failure to comply with provisions re oaths.
"Every bank failing to comply with the provisions of this
section (regarding oaths) shall pay to the State Bank Examiner a
penalty of Five Dollars for each day'3 delay." (Laws of 1919, ch.
120, sec. 8; New Mexico Stats. Ann., 1929, sec. 13-119; New Mexico
Bank Code, 1929, sec. 19, p. 9).
Statement as to names and residences of owners and amount of stock held.
"Every bank shall, within twenty days after the first Tuesday
in January of each year, upon a form to be furnished by the State Bank
Examiner, file with the State Bank Examiner a statement sworn to by *
* * at least two owners of an unincorporated bank, disclosing the names
and residences of all *** owners thereof, together with the amount of
'stock or interest held by each. In the event of any change in the *
* * owners of any unincorporated bank, 3uch changes shall within twenty
days be likewise certified to the State Bank Examiner." (Laws of 1919,
ch. 120, sec. 9; New Mexico Stats. Ann., 1929, sec. 13-122; New^exico
Bank Code, 1929, sec. 22, p. 10),
Penalty for failure to comply with orovisiona re statement.
"•Il"

•"'

'

•"-

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- ' • •'•• "' —

'"•"•• '

i

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-

-

•

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—

—

"Every bank failing to comply w^th the provisions of * * *
(the) section (last above quoted) shall pay to tho State Bank Examiner
a penalty of Five Dollars for each day's delay." (Laws of 1919, ch.
120, sec. 9; New Moxico Stats. Ann., 1929, sec. 13-122; New Mexico
Bank Code, 1929, sec. 22, p. 10 ).
Meetings of owners; examination of books, records, etc., required. .
"The board of directors or owners of every bank shall hold
regular meetings once each month. Failure on tho part of any director
without good cause to attend three consecutive meetings shall be ground
for his removal by the State Bank Examiner. At not less than two of
said meetings during each year, which meetings shall be at least five
months apart, the board of directors or an auditing committee consisting of at least two members of the board of directors shall make
a thorough examination of the books, records, funds, securities and
other property held or owned by the batik, and shall enter upon their
minutes the result of such examinations and a certified copy of such
entry shall within twenty days from the date thereof be filed with
the State Bank Examiner," (Laws of 1929, ch. 131, sec. 7; New Mexico
Stats. Ann., 1929, sec. 13-123; New Mexico Bank Code, 1929, sec. 23,
P. 10 ).




-JZoy

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X"08tft

Penalty for f a i l u r e to make s^igh oxamination.
If the owners of any bank f a i l to make or cause to be made
an examination of the books, records, funds, s e c u r i t i e s and other
property held or owned by the bank, each of such owners i s personally
l i a b l e to a penalty of f i f t y dollars for every such f a i l u r e . If t h i s
penalty i s not paid within t h i r t y days after demand therefor, the
State Bank Examiner mast i n s t i t u t e c i v i l proceedings to recover the
same, No owner can bo reimbursed out of the funds of the bank on
account of any penalty paid, nor can any penalty be paid out of the
funds of the bank. (Laws of 1929, ch. 131, sec. 7; New Mexico S t a t s .
Ann., 1929, sec. 13-123; New Mexico Bank Code, 1929, sec. 23, p . 10).
Endorsement of paper of borrower by owner.
Ho owner in an unincorporated bank can become endorser for
any person, firm or corporation borrowing money therefrom, nor can
any note or obligation of such owner be considered as an a s s e t of
the bank, (Laws of 1919, ch. 120, sec. 20; New Mexico S t a t s . Ann.,
1929, sec. 13-136; New Mexico Bank Code, 1929, sec. 35, p . 1 5 . ) .
Declaration of dividend; surplus fund required.
The owners may semi-annually declare a dividend of so much
of the net p r o f i t s of the bank as has been a c t u a l l y earned and collected; but every bank must before the declaration of a dividend,
carry- one-fifth of i t s net p r o f i t s for the preceding half year to
i t s surplus fund u n t i l i t amounts to f i f t y per centum of i t s capital
stock, and such surplus must thereafter be maintained unless impaired
by unavoidable l o s s e s . (Laws of 1929, ch. 131, sec. 11; New Mexico
S t a t s . Ann., 1929, sec. 13-146; New Mexico Bank Code, 1929, sec. 45,
p . 17 ) .
NOT Y03K
The laws of this State provide that if a private banker
executes and has accepted by the superintendent of banks a certain
affidavit, the required contents of which are hereinafter set forth,
such banker is exempted from certain other provisions of law. The
provisions covering such banker are digested immediately below.
A private banker who has not executed and had accepted by
the superintendent the so-called exemption affidavit is subject, in
addition to the provisions set out immediately below, to certain other
provisions. These additional provisions are digested separately and
follow after the provisions covering private bankers of the class
first above referred to.
Definition of private banker.




"The term, 'private banker', when used in this, chapter*

~^&Sr

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X-flSlfr

"means an individual, who, by himself, or as a member of a partnership
or unincorporated association other than an unincorporated exoress,
company having a contract with a r a i l r o a d company or r a i l r o a d companies
for the operation of an express service upon the l i n e s thereof, i s engaged in the business of receiving deposits subject to check or for
repayment upon the presentation of a pass book, c e r t i f i c a t e of deposit
or other evidence of debt, or upon the request of the depositor, or in
the discretion of such individual, partnership or unincorporated a s sociation; of receiving money for transmission; of discounting or neg o t i a t i n g promissory notes, d r a f t s , b i l l s of exchange or other evidences of debt; of buying or s e l l i n g exchange, coin or bullion; or
i s engaged in the business of transacting any p a r t of such business.
The term, ' p r i v a t e banker', when so used, shall include the executor or




-JLOCf

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administrator of a deceased private banker and a partnership or unincorporated association of private bankers." (Banking Law , sec. 2 ).
Classes of private bankers covered by provisions*
The laws of this State provide that the provisions applicable
to private bankers, "except as hereinafter further limited, shall apply to every privato bankor engaged in the business of private banking
in the State:
"1. Who makes use of the word 'bank,1 'banker,' 'banking:1 or
any derivative or compound of any such word or any words in a foreign
language having the same or similar meanings, in or on any sign or
any passbook, check, receipt, note, stationery, billhead, certificate,
blank, form, pamphlet, circular or newspaper or other advertising matter,
or . h solicits deposits by means of signs or other advertising; or
'o
"2. V/ho pays or credits interest, or pays, credits or fives
any bonus or gratuity or any thing of value, except on certificates
of deposit actually outstanding at the time this act takes effect,
to any depositor on any deposit balance of less than seven thousand
five hundred dollars, if such deposit balance is that of any depositor
resident in the United States who does not have with such banker during the period in respect of which interest is so paid or credited,
an average daily credit balance or securities of an average daily
market value, together exceeding seven thousand five hundred dollars;
provided the aggregate amount of such deposit balances on which interest
is so paid or credited exceeds two per centum of the total deposits of
such private banker; or
"3. Who receives money on deposit for safekeeping or for any
other purpose (other than for transmission to others) in such sums
that the average of all the separate deposits so received by such
private banker from all depositors during any twelve months' period
(or for such period, if less than twelve months, that such private
banker has been engaged in such business) is less than one thousand
dollars. * * * ; or
"4. Who receives from any oerson at any one time money for
transmission to others in,any manner whatsoever in amounts of less
than five hundred dollars, provided,, however,, that any private banker may, without thereby becoming subject to the provisions of this
article, sell letters of credit, bankers' checks, travellers' checks,
bills of exchange, drafts or other similar documents or may make
cable transfers in amounts of loss than five hundred dollars, if he
has deposited and shall keep on deposit with the superintendent of
banks interest bearing stocks or bonds of the United States or of
this state or of any city,, county, town, village or free school
district in this state authorized by the legislature to issue the
same, in a principal amount equal to one hundred thousand dollars.
* * * ". (Banking Law , sec 150 ).




'.3/0 -

business not to be begun withotit Authorization certificate of
superintendent of "banks.
None of the business comprised in the above definition of a :
private hanker shall be carried on by any "individual, partnership
or unincorporated association" unless an authorization certificate is
granted by the superintendent of banks* (Banking Law * sec 160-a).
procedure to obtain authorization certificate*
Every private banker or Other individual, partnership or unincorporated association seeking to engage in business as a private
banker must submit to the superintendent of banks a verified certificate in duplicate which shall state:
"1. The full name, residence and post office address of such
individual or of each member of such partnership or unincorporated
association.
"2. The state, or country, of which each individual named
in such affidavit is a citizen.
"3. Tho amount of permanent capital such-individual,, partnership or unincorporated association l a kept invested in M s business
is
as a private banker or has deposited in cash to be invested in such
business which shall be not less than tho amounts hereinafter specified;
"(a) Fifteen thousand dollars if the placo where tho
business is to be transacted is an incorporated or unincorporated village having a population which does not exceed
two thousand;
"(b) Twonty-five thousand dollars if the place where
thu business is to be transacted is a*: incorporated or unincorporated village having a ricpulati on of two thousand or
more and less tnan ten thousand;
"(c) Fifty thousand dollars if the placo whore tho
business is to be transacted is an incorporated or unincorporntod villa*,** or a city having a population of ten
thousand or more and I0S3 than thirty thousand;
"(d) Ono hundred thousand dollars if the place whore
the business is to be transacted is a cit;7, having a population of thirty thousand or more.
"4.

The place at which such business is to bo transacted.

"5. If such private banker is engaged in business as a private banker in a city tho population of which exceeds one hundred and
seventy-five thousand, the amount of deposit balance upon which such




-.2 >I
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p r i v a t e "banker pays or c r e d i t s i n t e r e s t or p a y s , c r e d i t B or g i v e s any
"bonus or g r a t u i t y or anything of• v a l u e to a d e p o s i t o r and the average
of the s e p a r a t e d e p o s i t s of such p r i v a t e t a n k e r s i n c e January f i r s t ,
n i n e t e e n hundred t h i r t y , or for a p e r i o d of twelve months immediatel y p r e c e d i n g the d a t e of such v e r i f i e d c e r t i f i c a t e , e x c l u s i v e of d i v i d e n d checks, coupons o r . o t n e r small c o l l e c t i o n items c o l l e c t e d "by
such p r i v a t e "banker for customers i n the o r d i n a r y course of b u s i n e s s
i n ; o r , i f the a p p l i c a n t has n o t a l r e a d y engaged i n such b u s i n e s s ,
s a i d c e r t i f i c a t e s h a l l s t a t e the minimum d e p o s i t b a l a n c e upor. which
such a p p l i c a n t proposes t o pay or c r e d i t i n t e r e s t or to nay, c r e d i t
or £;iva such bonus or g r a t u i t y , or t h i n g of v a l u e .
"Such c e r t i f i c a t e s h a l l bo v e r i f i e d by such i n d i v i d u a l or by
one or more members of a p a r t n e r s h i p or u n i n c o r p o r a t e d a s s o c i a t i o n ,
i n the d i s c r e t i o n of the s u p e r i n t e n d e n t i upon a form p r e p a r e d by the
s u p e r i n t e n d e n t of b a n k s , which s h a l l s t a t e t h a t t h e a f f i a n t or a f f i a n t s
have road such c e r t i f i c a t e - and t h a t t h e f a c t s t h e r e i n s t a t e d a r e t r u e . "
(Banking Law , s o c . 151)*
When t h e s u p e r i n t e n d e n t r e c e i v e s the v e r i f i e d c e r t i f i c a t e ,
he must a s c e r t a i n whether the c h a r a c t e r , r e s p o n s i b i l i t y and g e n e r a l
f i t n e s s of the p e r s o n or persons named i n such c e r t i f i c a t e a r e such
t h a t t h e b u s i n e s s of the proposed p r i v a t e banker ™dll bo h o n e s t l y and
e f f i c i e n t l y conducted and whether the p u b l i c convenience and a d v a n t age F i l l be promoted by allowing such proposed banker to engage or
c o n t i n u e i n b u s i n e s s . The s u p e r i n t e n d e n t i s a l s o r e q u i r e d to a s c e r t a i n whether the f a c t s s t a t o d i n the c e r t i f i c a t e a r e truo i n case
t h e p r i v a t e banker has not submitted v i t h i t the s o - c a l l e d exemption
a f f i d a v i t or such a f f i d a v i t has been .rofaseu by the s u p e r i n t e n d e n t .
A f t e r t h e s u p e r i n t e n d e n t has s a t i s f i e d himself t h a t i t i s expedient
and d e s i r a b l e t o p e r m i t such p r i v a t e banker to engage or continue i n
bus::.ne'iiS, he may approve the c e r t i f i c a t e and must immediately give
n o t i c e of the approval to tno n r i v a t u b a n k e r . (Banking Law , s e c .
23 ) .
Revocation of a u t h o r i z a t i o n c e r t i f i c a t e or l i c e n s e by s u p e r i n t e n d e n t ?
e f f e c t of.
" I f a t any time t h e s u p e r i n t e n d e n t s h a l l be s a t i s f i e d t h a t any
p r i v a t e banker * * * i s v i o l a t i n g any of the p r o v i s i o n s of t h i s
c h a p t e r , or i s conducting i t s b u s i n e s s in an u n a u t h o r i z e d or unsafe
manner, or i s in an unsound or unsafe c o n d i t i o n to t r a n s a c t i t s b u s i n e s s , or can n o t with s a f e t y and expediency c o n t i n u e b u s i n e s s , the
s u p e r i n t e n d e n t may, * * * n o t i f y the h o l d e r of such a u t h o r i z a t i o n
c e r t i f i c a t e or l i c e n s e t h a t the same i s revoked." (Banking Law,
s e c . 29 ) I t i s a l s o provided t h a t "Whenever t h e s u p e r i n t e n d e n t
s h a l l have revoked h i s a u t h o r i z a t i o n of any such p r i v a t e b a n k e r ,
and s h a l l have taken t h e a c t i o n to make such r e v o c a t i o n e f f e c t i v e
s p e c i f i e d in s e c t i o n t w e n t y - s i x of t h i s c h a p t e r ( s e c t i o n twentys i x p r o v i d e s for t h e r e v o c a t i o n of the s u p e r i n t e n d e n t ' s a c c e p t a n c e




- X/J.

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of the affidavit entitling privat& bankers to certain exemptions,
and this section and the section covering the exemption affidavit
are set out hereinafter), all the rights and privileges of such
banker, resulting from such preceding authorization, shall forthwith
cease and determine." (Banking Law , sec. 158).
Conditions precedent to transacting business.
No private banker can engage or continue in business until (a)
the amount of permanent capital required by law is invested in the
business, or is deposited in cash to be so invested, and (b) the
superintendent of banks has issued an authorization certificate and
has filed such certificate in his office. (Banking Law , sec. 152.)
When the authorization certificate has been issued and filed by the
superintendent of banks, a private' banker is subject to all of the
provisions relating to private bankers. (Banking Law , sec. 152).
Permanent unimpaired capital must be maintained; if impaired,
superintendent may issue order to make deficiency good.
Every private banker must keep unimpaired in his banking
business the amount of permanent capital specified in the verified
certificate. (Banking Laws, sec. 154). Whenever it appears to the
superintendent that the capital has "been reduced below the requirements of law, ho may issue an order directing that such deficiency
be made good immediately or within a' time specified in such order..
(Banking Law , sec. 55).
Capital may be increased or decreased.
"Prom time to time, with the written approval of the superintendent and upon good cause shown, such permanent capital may be
increased or decreased." (Banking Law , sec. 154).
Segregation of investment of capital and deposits.
"All securities, property and the evidences of title thereto,
in which the permanent capital of and the deposits with any such private banker have been invested shall be segregated and kept separate
and apart from all other property and assets of such private banker."
(Banking Law , sec. 155 ) .
Besorves required against deposits.
Every private banker is required to maintain total reserves
against deposits in the following amounts (Banking Law , sec. 157 ) :
18 per cent of demand deposits if located in a borough having
a population of 1,500,000 or over; and at least 12 per cent of such
deposits shall be maintained as reserve on hand.




~J2l3

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X-001O

15 per cent of demand deposits if located in a borough of
1,000,000 and loss than 1,500,000 population and with no office in
a borough of 1,500,000 or over; and at least 10 per cont of such
deposits shall be maintained as reserves on hand.
12 per cent of demand deposits if located elsewhere in the
state; and at least 4 per cent of such deposits shall be maintained
as reserves on hand. (Banking Law , sec. 112 ) .
Failure to maintain required reserves; penalties; superintendent may
issue order to make doficiency good.
If any private banker fails to maintain the required reserves,
"the superintendent shall levy an assessment upon it during such period
as any encroachment upon its total reserves amounting to one per centum
or more of its aggregate demand deposits shall continue", at certain
prescribed rates. (Banking Law , sees. 30 and 157 ) . The superintendent is given power, where a private banker refuses or fails to p a y any
such assessment or any penalty or forfeiture incurred under any p r o vision of law,- or rvhere he violates any prohibition of law, to "report
the facts to the Attorney General, who shall thereupon, in the name of
the superintendent, institute such action or proceeding as the facts
,may warrant" against such private banker. (Banking Law , sec. 31 ) .
The superintendent is also given power, whenever it appears to him
"that either the total reserves or reserves on hand of any such * * *
private banker * * * are below the amount * * * required by law to be
maintained, or that such * * * banker is not keeping its reserves on
hand" to issue an order "directing that such * * * banker make good
such reserves forthwith or within a time specified in such order, or
that it keep its reserves on hand" as required b y law. (Banking Law t
sec. 56 ) ,
' Reports of condition required.
"It shall be the duty of the stiperintendent to require all * *
* private bankers * * * to make to him * * * regular periodical reports
of their condition * * * and he shall prescribe the form and contonts
of all such reports. In addition to such regular reports he may require any such * * * banker * * * to make special reports to him at
such times and in such form as he may prescribe, and may direct that
such special reports be verified and prescribe the form of the verification*
"He shall at least once in every three months, designate some
day therein in respect to which * * * every such private banker * * *
(except such as have obtained certain exemptions through the filing
of the affidavit hereinafter sot forth ) shall roport to him, and ho
shall serve a notice designating such day." (Banking Law , sec. 42 ) .




-^/y uflS«'

3£-€Si3—

Examinations may T e made " y superintendent.
j
b
All private bankers engaged in business in cities or elsewhere
in the State, from and after July 31, 1930, "shall he subject at all
times to full and complete examinations by the superintendent or by M s
deputies, examiners or employees when duly authorized."
(Banking Law ,
sec. 150-a).
Humber of examinations required.
"The superintendent shall, either personally or by his deputies
or examiners, at least twice in each year visit and examine * * *
every private banker" subject to. the provisions of law relating to
private bankers, except such as have obtained certain exemptions
through the acceptance by the superintendent of the affidavit hereinafter set forth. Private bankers who have had this affidavit accepted
are only subject to examination once during each year. The superintendent is given power to examine private bankers "whenever, in his
judgment, such examination is necessary or expedient.
"On every such examination inquiry shall be made as to the
condition and resources of such * * * , banker * * * the mode of
conducting and managing its affairs, * * *, the investment of its
funds, the safety and prudence of its management, the security
afforded to those by whom its engagements are held, and whether the
requirements of its charter and of law have been complied with in the
administration of its affairs; and as to such other matters as the
superintendent may prescribe.
"The superintendent may also either personally or by his
deputies or examiners, make such special investigations as he shall
deem necessary to determine whether any individual, copartnership,
unincorporated association * * * is violating, or has violated any
of the provisions of this chapter; and to the extent necessary to
make such determination the superintendent shall have the right to
examine the relevant books, records, accounts, and documents."
(Banking Law , sec. 39).
Penalty for refusal to permit examination.
A penalty is imposed for the refusal of a private banker to
permit an examination or investigation of its affairs. (Banking1Law ,
sees. 38 and 150-a).
Unlawful or unsafe practices; superintendent may issue order to discontinue.
"Whenever it shall appear to the superintendent that ***
any private bankor * * * has violated its charter or any law, or
is conducting its business in an unauthorized or unsafe manner, he
may issue an order directing the discontinuance of such unauthorized
or unsafe practices and requiring the delinquent to appear before him,




- <2)!T -

"at a time and place fixed in said Oder, to present any explanation
in defense of the practices directed in said order to bo discontinued."
(Banking Law , sec. 56).
Business of delinquent banker may be taken over by superintendent;
and examinations may be made. '
"The superintendent may forthwith take possession of the
business and property of * * * any private banker * * * whenever it
shall appear that such * * * banker:
1. Has violated its charter or any law;
2.
manner;

Is conducting its business in an unauthorized or unsafe

3. is in an unsound or unsafe condition to transact its
business;
4.

Cannot with safety and expediency continue business;

5. -Has an impairment of its capital;
6. Has suspended payment of its obligations;
?. Has neglected or refused to comply with the terms of a
duly issued order of the superintendent;
8. Has refused, upon proper demand, to submit its records
and affairs for inspection to an examiner of the banking department;
9. Has refused to be examined upon oath regarding its
affairs." (Banking Law , sec. 57).
The superintendent, after he has taken possession of the
property and business of a private banker, may make examinations
and institute or contirue inquiries until such banker resumes business or is finally liquidated in accordance with law. (Banking
Law , sec. 39).
Circumstances under nhich possession of superintendent may terminate.
"When the superintendent shall have dan.y taken possession of
such * * * private banker * * *, he may hold such possession until
its affairs are finally liquidated by him, unless: (l) he shall have
permitted such * * * banker to resume business * * *; (2) the superintendent shall have been directed by order of the supreme court to
surrender such possession * * *; * *. *; (4) the depositors and other
creditors of such banker * * * and the expenses of such liquidation
shall have been paid in full." (Banking Law , sec. 58).




-J./C
- 67 tr

.X-6812

Superintendent may permit resumption of business*
*

'

•

•

•

.

••

• - ' • • • •

• • "

• * ' •

• • • • • '

•

•

•

•

• ' • • •

"The superintendent may, upon such conditions as may be approved by him, surrender possession for the purpose of permitting such
* * * "banker * * * to resume business; but the superintendent shall
not authorize any reduction of capital stock or capital as one of
the terms of such resumption."
(Banking Law , sec. 61)»
Liquidation; various provisions in relation thereto*
There are a number of detailed provisions with reference to
the liquidation of the affairs of private bankers by the superintendent of banks. These provisions provide for the appointment of
special deputies, assistants, etc., by the superintendent to assist
him, the payment of expenses, the procedure to obtain possession of
pleadings, etc., in actions in which attorneys' liens are asserted,
the notification to those holding assets of the private bank of the
fact that the superintendent has taken possession of s\ich bank and
the effect of such notification, the inventory of assets, the disposition by the superintendent of property held by the liquidating
banker as bailee or as depositary, the liquidation and conservation
of assets, the deposit of moneys collected by the superintendent,
the appearance in suits, and the execution of instruments, etc., by
the superintendent on behalf of the liquidating banker, the proof
of claims by creditors, the listing of claims by the superintendent, the filing of objections to claims, the acceptance or refusal
of claims by the superintendent, the effect of a lien on a judgment
recovered by the superintendent after taking over a private banker,
and the disposition of dividends to creditors. (Banking Law , sees*
62-75).
Change of location.
A private banker may change the location of his business with
the permission of the superintendent of banks. (Banking Law , sees*
50 and 159).
Affidavit entitling private banker to certain exemptions; contents of;
extent of exemptions.
"Any such private banker authorized ty the superintendent
to engage in such business, or who has ap.oiiad for such authorization,
may submit to the superintendent an affidavit executed in duplicate
and verified in the same manner as the (verified) certificate * * *
upon a form to be furnished by the superintendent containing a statment as follows:
"1. If such private banker is engaged in business elsewhere
than in a city having a population of one^liundred and seventy-five
thousand or more, that such private banker has permanently invested




-JI-J

"

--66-*

X-S812.

"in this state in his banking business immediately orcceding the date
of such affidavit, a capital over and above all his liabilities as
such private banker at least equal to the minimum required by" the
verified certificate; or
"2. If such private banker is engaged in business as a private banker in a city having a population of one hundred and seventyfive thousand or more:
"(a) That such orivate banker has permanently invested in
this state in his banking business immediately ^receding the date of
such affidavit a capital of at least one hundred thousand dollars
over and above all his liabilities as such -irivate banker.
"(b) That such orivate banker will not pay or credit or
advertise to m y or credit any interest or pay, credit or give any
bonus or gratuity whatever or anything of value to any depositor on
a deposit balance with such private banker of less than five hundred
dollars.
"(c) That the average of the separate deposits * * * received
by such private banker during the twelve months immediately preceding
the date of such affidavit, for safekeeping or for any other purpose,
exclusive of dividend checks, coupons, or other small colloction items
collected by such private banker for customers in the ordinary course
of business, and also the average of the separate deposits received
during such oeriod for transmission to others, is three hundred dollars
or more."
After the date upon which the suoerintendent has accepted
and filed in his office such affidavit, and until such acceptance is revoked by the superintendent, the provisions hereinafter set out do
not apply to such private banker, but such banker is subject to all
of the provisions abovo set out. "The superintendent may at any time
in his discretion require any such private banker to file an affidavit
containing a statement a3 abovo specified and as of a date fixed in
said request."
"In the event of the failure of such private banker so to do,
or of the refusal of the superintendent to accept and file said affidavit
all of the subsequent sections of this article (i.e., sections 131-175,
inclusive) shall be applicable to such private banker". (Banking Law,
sec. 160 ).
Investigation by superintendent of statements made in affidavit;
refusal or acceptance of affidavit.
If, upon receipt by the superintendont of the affidavit above
referred to, it fails to comply in form and substance with the requirements set out above, "he shall refuse to file it for examination until
the defect or defects therein shall have bean remedied". If such
affidavit complies, or has been so amended as to comply, in all respects




~3/%

-

»-69-=

X-601&

with the requirements thd superintendent s h a l l , by such investigation
as he may deem necessary! s a t i s f y himself whether the facts s t a t e d
in such affidavit are t r u i ; I f the facts are found to he untrue,
the superintendent s h a l l refuse 16 accept' the a f f i d a v i t . I f the superintendent s h a l l he s a t i s f i e d that the facts s t a t e d are true, he shall
accept the a f f i d a v i t and s h a l l forthwith give notice of the acceptance
to such p r i v a t e hanker. (Banking law , sec. 2 5 ) .
Eevocation of acceptance of a f f i d a v i t ; effect of revocation.
I f a t any time the superintendent has reason to helieve that
any p r i v a t e hanker whose affidavit he has accepted "is not keeping
permanently invested in this s t a t e in h i s hanking "business the amount
of c a p i t a l specified in such a f f i d a v i t , or, that such banker i s paying or crediting or advertising to pay or credit any i n t e r e s t , or i s
paying, crediting or giving any bonus or g r a t u i t y whatever or anything of value, on deposits of l e s s than the amount stated in such
a f f i d a v i t , or t h a t any material statement i n such affidavit was i n
fact untrue, the superintendent shall forthwith i n s t i t u t e such i n vestigation, as he shall.deem necessary to a s c e r t a i n the truth Of such
facts and may examine or cause an examination to be made into the.
books, papers and a f f a i r s of such p r i v a t e banker so far as may be
necessary for such purposes. I f from such investigation or otherwise the superintendent shall be s a t i s f i e d that su.ch banker i s not
keeping such c a p i t a l so invested, or, that such banker i s paying or
crediting or advertising to pay or credit any i n t e r e s t , or i s paying,
crediting or giving any bonus or g r a t u i t y whatever or anything of
value, on deposits of less than the amount s t a t e d in such a f f i d a v i t ,
or that any material statement in such affidavit was in fact untrue,
the superintendent may, over his o f f i c i a l signature, notify such •
p r i v a t e banker that the acceptance of such a f f i d a v i t i s revoked.
Such notice s h a l l be executed in t r i p l i c a t e and the superintendent
s h a l l transmit one copy to such p r i v a t e banker, attach another to
the. duplicate of such affidavit on f i l e in Ms own office and f i l e
the t h i r d copy thereof i n the county c l e r k ' s office i n which the
other duplicate of such affidavit has been f i l e d . " (Banking laws,
s e c . 26). I t i s also provided that "Whenever the superintendent shall
have revoked his authorization of any such p r i v a t e banker, and s h a l l
have taken the action to make such revocation effective specified in
section twenty-six of this chapter ( t h i s i s the section l a s t above
quoted) a l l the r i g h t s and privileges of such banker, r e s u l t i n g from
such preceding authorization, s h a l l forthwith cease and determine."
(Banking Law , sec. 158).
Additional Provisions Applicable To A Private Banker Who Has Not Executed
The So-called Exemption Affidavit.
Investment of permanent capital and deposits.
"Every such private banker may, subject to the limitations
. .,.
and r e s t r i c t i o n s contained in t h i s a r t i c l e , invest his permanent c a n i t a !




«* TO =~

X"G61g-

"and the deposits received by him in such real or personal securities,,
or real and personal property, consistent with safety and prudence
of management as he may deem proper, provided the security afforded
depositors is not i:m?eriled " y such investments." (Banking Law , Sec.
b
162).
Prohibitions against investments or loans of capital and deposits.
"No such private banker, however, shall appropriate to his
own use or lend to any person or persons with whom he is associated as
a.partner, or invest in any business conductod by a partnership of
which such private banker is a member, or lend directly or indirectly to any corporation of which he is the legal or equitable owner to
the amount of twenty-five per centum or upwards of the issued capital
stock of such corporation, any part of his permanent capital or of the
deposits received by him." (Banking Law , sec. 162),
Real Estate and certain securities; when to be sold.
"All.real estate which' shall hereafter be purchased or otherwise acquired by any such private banker with his permanent capital
or with money received by him on deposit or to which such private
banker shall have taken title in connection with his business as
such private banker, except that upon which his office is located,
shall be sold within five years after talcing title thereto; and all
real estate so purchased or acquired, and held by such private banker at the time when this act takes effect, except that upon which his
office is located, shall be sold within five years after this act
takes effect; unless upon his application the superintendent of banks
shall, in either case, have extended the time within which such sale
shall be made.
"All such real estate and all registered securities and mortgages pur chased by any such private banker with any part of his permanent capital or with money received by him on doposit, or hold by
any such private banker on the date when this act takes effect, shall
be sold within one year after such date urloss prior to the expiration of such year, such real estate or registered securities or
mortgages shall have been recorded in the name of such private banker * * * ". (Banking Law , sec. 163).
Restrictions on purchase of. and loans on real estate.
"No such private banker shall hereafter purchase with any
part of his permanent capital or deposits received by him any Teal
estate which is subject to a mortgage, lien or encumbrance; nor make
a loan, directly or indirectly, upon the security of real estate if
Such real estate is subject to a prior lien or encumbrance and the
amount unpaid upon such prior mortgage, lien or encumbrance or. the
aggregate amount unpaid upon all prior mortgages, liens and encumbrances exceeds ten per centum of the permanent capital of such




- A*0

-

"private tanker, and, if the Wnouht so secured, including all prior
mortgages, liens and encumbrances, exceeds two-thirds of the value
of such real estate." (Banking Law , sec. 164).
Books and records;• superintendent may issue order to keep properly*
"Every such private hanker shall keep separate and complete
books of account in which shall he promptly entered the details of
all busi-iess transacted by him as such banker including statements
in detail of the liabilities incurred by him as such banker and of
the securities or property in which the permanent capital and the
deposits received by him have been invested." (Banking Law , sec.
165).
Every private banker is required to keep his books and records
in such manner as the superintendent may direct (Banking Laws, sec.
165), the superintendent being authorized to "issue an order requiring such * * * banker * * * or the officers thereof or any of them,
to open and keep such books or accounts as he may in his discretion,
determine and prescribe for the purpose of keeping accurate and convenient records of the transactions and accounts of such * * * banker" whenever- it appears to him that any private banker, except those
who have had accepted the so-called exemption affidavit, "does not
keep its books and accounts in such manner as to enable him readily
to ascertain its true condition." (Banking Law , sec. 56).
Penalty for failure to obey order regarding books and accounts.
"Any such banker that refuses or neglects to obey any such
order shall be subject to a penalty of one hundred dollars for each
day that such refusal or neglect continues." (Banking Law , sec.•
165),
Report regarding unclaimed deposits.
There are detailed provisions with reference to reporting to
the superintendent of banks regarding unclaimed deposits. This report
must be made annually and must state whether or not any unclaimed
deposits are being held. Publication of a copy of such report is
required to be made in the newspapers and a penalty of $100 per day
is imposed for each day such report or the filing of an affidavit
of proof of its publication with the superintendent is delayed or
withheld. (Banking Law , sec. 166).
Transmission of money.
The laws contain provisions regulating the transmission of
money by private bankers. Money received for transmission must be
forwarded within five days after being received and a receipt must
be given to the person delivering such money for transmission. - A
penalty is prescribed for a violation of these provisions. (Banking Law , sees. 167 and 168).




-J2/^

-' 70 ••-

'X"681g

Monthly statement required of jjurchases and s a l e s of property and
discounts, loans or other advances*
A written v e r i f i e d statement i s required to "be f i l e d monthly
lay p r i v a t e tankers with the superintendent of hanks in which must
be l i s t e d a l l purchase and sales of property made in connection
with t h e i r "business and a l l discounts, loans or other advances made
by them, including overdrafts and renewals, since the l a s t preceding statement. A description of the c o l l a t e r a l i f any, to such i n debtedness must also be made. Discounts, loans, e t c . , however, of
l e s s than $100 may be omitted from such statement unless they i n crease by $100 the l i a b i l i t y of some individual, partnership, unincorporated association or corporation since the l a s t statement.
(Banking law , s e c . 169).
Members of p r i v a t e bankers required to meet monthly.
"The members of any such partnership or unincorporated assoc i a t i o n of p r i v a t e bankers s h a l l on or before the tenth day of each
month meet for the purpose of considering the conditions and a f f a i r s
of the banking business conducted by them" and of making the s t a t e ment above referred to and such statement s h a l l be verified by each
member * * * except i n case of d i s a b i l i t y or unavoidable absence."
(Banking Law , sec. 169).
Re-ports of condition required.
A private banker who has not executed the so-called exemption
a f f i d a v i t i s required to make reports of his condition to the superintendent every three months upon service of notice by him of the day
on which such reports must be f i l e d . (Banking Law 4 sec. 42). Withi n ten days aftor service of this notice on him "every such p r i v a t e
banker shall make a written report to the superintendent of banks,
which report s h a l l bo in the form and shall contain the matters pre«w
scribod by the superintendent and shall s p e c i f i c a l l y s t a t e the items
of permanent c a p i t a l , deposits, specie and cash items, public securi t i e s and private s o c u r i t i j a , r e a i estate and r e a l e s t a t e £ e c u r i t i o s
and such other items as ;nay be necessary to inform the public as to
h i s financial condition and solvency or whicn tho superintendent may
deem proper to include therein, and s h a l l also s t a t e ttea amount of
deposits with him, the payment of which in case of insolvency i s
preferred by law or otherwise over other depositors* I t shall s t a t o
i n d e t a i l the p a r t i c u l a r assets in which the perma«g>nt capital of
such private banker i s invested. Every such report s h a l l be v e r i f i e d
by the oath of such private banker and of each member of a p a r t n e r ship or an unincorporated association of private bankers to the effect that the report i s true and correct in a l l respects to the best
of the knowledge and b e l i e f of such banker or bankers and that the
usual business of such banker has been transacted at the location
s t a t e d in the (verified) c e r t i f i c a t e (hereinbefore referred to) * * * f




-J £ A - Bl u
f

X'6313

"and not elsewhere. In case of the disability or unavoidable absence
of a member of a partnership or unincorporated association, such report may be verified by the other members; but the verification shall
contain a statement of the reason for the failure of any member to
sign and verify such report. Evory such report, exclusive of the
verification shall within-thirty days after it shall have been filed
with the superintendent be published by such private banker in one
newspaper of the place where such private banker is engaged in business
or if no newspaper is published there, in the newspaper published
nearest to such place." (Banking Law , sec. 170).
Special re-ports of condition.
Every such private banker shall also make such other special
reports to the superintendent as he may from time to time require in
such form and on such dates as may be prescribed by the superintendent,
which reports shall if required by the superintendent, be verified in
such form as he may prescribe. (Banking Law , sec. 170).
Penalty for failure to make report of condition or include therein
required information.
If any private banker fails to make any required report on
or before the date designated for the making thereof or fails to
include therein any matter required by the superintendent, such
private banker shall forfeit the sum of one hundred dollars for
every day that such report is delayed or withheld and for every day
that it fails to report any such omitted ..natter, unless the time
therefor has been extended by the superintendent. (Banking Laws,
sec. 170). An extension of time not exceeding ten days may be
granted by the superintendent "for satisfactory cause to him shown"
within which such reports may be filed. (Banking Law , sec. 49).
Restrictions as to place of business.
A private banker shall not do business, or be located in the
same room with, or in a room connecting '"ith any bank, trust company,
savings bank, or national banking association.
(Banking Law ,
sec. 171).
Communications from superintendent must be submitted to members and
noted on records.
Each official communication from the superintendent or one of
his deputies to any private bank relating to an examination or investigation or containing suggestions'or recommendations as to the
conduct of the business, shall be submitted by the member receiving
it to all the .members of such private bank at their next meeting
and duly noted on their records.
(Banking Law , sec. 172).




- JA 3

-

- • 74 ••

• X 681C

N03TH CAROLINA.
Private Panics •permitted but subject to same laws and supervision as
incorporated banks.
The following provisions recognize a private banting business,
but indicate that such business is subject to the same provisions of
law and supervision as are imposed upon incorporated banks.
Definition of term "bank".
The law provides that "The term 'Bank' when used in this chapter
shall be cdnstrued to mean any corporation, partnership, firm, or individual receiving, soliciting, or accepting money or its equivalent
on deposit as a business: Provided, however, this definition shall
not be construed to include building and loan associations, Morris
Plan Companies, industrial banks or trust companies not receiving
money on deposit." (Consolidated Statutes of North Carolina, sec.
216(a); Banking Laws, 1927, sec. 215(a), p. 3 ).
Private banks made subject to bank act and supervision of Corporation
Commission.
"Every bank, corporation, partnership, firm, company, or individual, now or hereafter transacting the business of .banking, or
doing a banking business in connection with any other business, under
the laws of and within this State, shall be subject to the provisions
of this chapter, and shall be under the supervision of the Corporation
Commission. The Corporation Commission shall exercise control of and
supervision over the banks doing business under this act, and it shall
be its duty to execute and enforce through the Chief State Bank Examiner, the State Bank Examiners, and such other agents as are now or
may hereafter be created or appointed, all laws which arc now or may
hereafter be enacted relating to banks as defined in this chapter."
(Consolidated Statutes of North Carolina, sec. 222(a); Banking Laws,
1927, sec. 222(a), o. 32).
Promulgation of regulations covering transaction of business.
"For the more complete and thorough enforcement of the provisions
of this act, the Corporation Commission is hereby empowered to promulgate such rules, regulations, and instructions, not inconsistent
with the provisions of this chapter, as may in its opinion be necessary
to carry out the provisions of the laws relating to banks and banking
as herein defined, and as may be further necessary to insure such
safe and conservative management of the banks under its supervision
as will provide adequate protection for the interests of the depositors, creditors, stockholders, and public in the relations with such
banks. All banks doing business under the provisions of this chapter




-.2J?*/ -

•—P$——

-y"6flia„

"shall conduct their "business in a manner consistent with all laws
relating to banks and 'banking, and all rules, regulations, and instructions that may be promulgated or issued by the Corporation Commission," (Consolidated Statutes of North Carolina, sec. 222(a);
Banking Laws, 1927, sec. 222(a), p. 33 ).
Reports of condition required.
In addition to subjecting -orivate banks to the provisions of
law covering incorporated banks, the bank act expressly provides
that "Every person, firm, * * *, or partnership doing a banking
business, or a banking business in connection with any other business, shall make to the Corporation Commission not less than three
reports (of condition) during each year, on forms prescribed by
the Corporation Commission. If any person, firm, * * *, or copartnership shall show by said reports, or by the examination of
any State bank examiner, that * * * (the) liabilities are equal to
the amount of the capital stock * * * , the Corporation Commission
shall have authority, and is hereby empowered, to make such rules
and regulations for the reduction of said liabilities as it may
deem necessary for the protection of the creditors and depositors
of such banking institution." (Consolidated Statutes of North
Carolina, sec. 222(c); Banking Laws, 1927, sec. 222(c), p. 33 ) .
Advertising banking business and use of,banking torms; when private
banks may use.
" ~~
— — — —
"No person, association, firm, * *•*, domiciled within the.
State of North Carolina, except * * *, persons, associations, or firms
reporting to and under the supervision of the Corporation Commission,
or under the Supervision of the Insurance Commissioner, shall therein
advertise or put forth any sign as bank, banking, banker, or trust
company, or use the word bank, banking, banker, or trust as a part of
its name and title; * * * * . Any violation of the provisions of
this section shall be a misdemeanor, and upon conviction thereof the
offender shall be fined in a sum not exceeding five hundred dollars
for each offense." (Consolidated Statutes of North Carolina, sec.
224(c); Banking Laws, 1927, sec. 224(c), p. 38 ).

NORTH DAKOTA.
Private banking business apparently prohibited.
"No/person excepting national banking corporations shall transact a banking business nor use the words bank, banking company or banker in any sign, advertisement, letterhead or envelope or in any corporate or firm name, without complying with and organizing under the
provisions of this Chapter" relating to the business of banking.
(Compiled Laws of 1913, sec. 5177; Banking Laws, 1929, sec. 5177, p.




-2<*Li

33). "This chapter" does not contain any provisions authorizing or
covering the organization of a private ban1:, and it would seom that
the effect of the above quoted provision is to prohibit a private
banking business.
Penalty for violation of above provisions.
"Any person violating the provisions of this section, either
individually or as an interested party in any association or corporation,
is guilty of a misdemeanor, and on conviction thereof shall be fined not
less than five hundred nor more than one thousand dollars, or imprisoned
in the county jail not less than ninety days, or both, in the discretion
of the court." (Compiled Laws of 1913, sec. 5177; Banking Laws, 1929,
sec. 5177, p. 23 ).

OHIO
Unincorporated banks may not now be established.
"Ho authority to transact a banking business in this State
shall be granted, except to a corporation duly organized and qualified
for that purpose. Unincorporated b,,jnks now authorized to' transact and
actually transacting a banking business may continue such banking business in the city, village, or township in which they are now located so
long as they comply with the provisions of this act." (General Code, sec.
710-76; Banking Laws, 1928, sec. 710-76, ;>. 29 ).
"Unincorporated bank" defined; scope of term "Board of directors."
"The following definitions siiall be applied to the terms used
in this act: * * * The term 'unincorporated bank' shall include every unincorporated person, firm or association transacting banking business in
this state; and the term 'board of directors' shall include the owner or
owners of such banks." (General Code, sec. 710-1; Banking Laws, 1928,
sec. 710-1, p. 5 ).
"Banking business" defined; word "bank", unless otherwise stated,
includes unincorporated banks.
"The term 'bank' shall include any person, firm, association,
or corporation soliciting, receiving or accepting money, or its equivalent,
on deposit as a business, whether such deposit is made subject to check
or is evidenced by a certificate of deposit, a pass-book, a note, a receipt, or other writing, and unless the context otherwise requires as
used in this act includes * * * * unincorporated banks; * * *". (General Code, sec. 710-2; Banking.Laws, 1928, sec. 710-2, p. 5 ).




From the above provisions, it appears that unincorporated
banks transacting a banking business at the time the act containing
these provisions became law, are made subject to the provisions
covering incorporated banks wherever this may appropriately be done.
In addition, such unincorporated banks are specifically made subject
to the following provisions.
Capital required; segregation necessary, purpose of.
Every unincorporated bank in cities or villages of two
thousand or less population is required to have a paid-in capital
of not less than $10,000; in cities or villages of more than two
thousand to ten thousand population, fee paid-in capital must be
$25,000; and in cities of over ten thousand population, the ^aidin capital must not be less than $50,000. This capital must remain in the possession of the bank as its property, and is to "be
used for its sole purposes and for the security of its creditors".
The capital shall at all times be segregated from any other property of the owners of the bank and shall be kept and maintained unimpaired for the security of the creditors of such bank".
All
unincorporated banks are required to comply with these provisions
within one year.
(General Code, sec. 710-78; Banking Laws, 1928,
sec. 710-78, p. 30 ).
Advertising capital; restriction upon.
No unincorporated bank " s h a l l advertise by newspaper, l e t t e r head, or in any other way, a larger c a p i t a l than has been a c t u a l l y . p a i d
in". (General Code, sec. 710-81; Banking Lars, sec. 710-81, p . 31 j .
Statement completely describing bank must be f i l e d annually.with
superintendent of banks.
Every unincorporated bank, on or before January 31st of each
year s h a l l , under oath, f i l e with the superintendent of banks, a f u l l
and complete d e t a i l e d statement containing the following:




1.

The name of the bank.

2.

A copy of the a r t i c l e s of co-nartnership or
agreement under which the business of such bank
i s being conducted. One of the owners of such
bank i s required at a l l times to be a r e s i d e n t
of the S t a t e of Ohio.

3.

The l o c a t i o n of the bank.

4.

The amount of the permanent a c t u a l l y paid in
c a p i t a l of the bank which i s .in JLfcs ,po**e9«ion
-•asHrts-property and for i t s sole purposes.

~c3J<!j

~ 7fl m
5.

A statement of the r e s p o n s i b i l i t y and net
worth of the individual members of the
bank.

6.

-y-6812'

The names of the o f f i c e r s , agents or employees in a c t i v e charge of the bank if
such names are not given in the a r t i c l e s
of co-partnership or agreement. (Act approved April 18, 1929, sec. 1, p . 4; General Code, s e c , 710-77 ) .

Mames under which property must be held.
All r e a l or personal property owned by an unincorporated bank
must be held in the designated name of the bank or in the name of an individual as t r u s t e e therefor, and not in -the -name -of th-e owners of the
bank. (General Code, sec. 710-79; Banking Laws, 1928, sec. 710-79, p . 30).
Assets, when exempt from attachment or execution.
All of the assets of an unincorporated bank are exempt from
attachment or execution by any creditor of the owners until all of the
liabilities of the bank have been r>aid in full. (General Code, sec. 71079; Banking Laws, 1928, sec. 710-79, p. 30).
Restriction against owners using funds for private use.
" T person, firm or association owning or conducting an uninIo
corporated bank shall use? any of the funds of 3uch bnnk for his or their
private business; except as a borrower in due course of business."
(General Code, sec. 710-79; Banking Laws, 1928, sec 710-79, p. 30) .
Depositors have first lien on assets.
"The depositors in any unincorporated bank shall have first
lien on the assets of such bank, in case it is wound up, to the amount
of their several deposits, and for any balance remaining unpaid, such
depositors shall share in the general assets of the owner or owners alike
with general creditors." (General Code, sec. 710-80; Banking Laws, 1928,
sec. 710-80, p. 30 ).
List of owners must be posted and changes must be reported to the
superintendent of banks.
A list of the owners of any unincorporated bank, and a statement to the effect that the bank is unincorporated must be posted in the
room in which the bank transacts its' business. Any subsequent changes
must be shown in the list and a report of all such changes must, be made
to the superintendent of banks. (General Code, sec. 710-81; Banking Laws,
1928, sec. 710-81, pp. 30 and 31 ).




—;-80 "

X .6010..

engage in the banking business. "(Laws of 1925» ch. 56, amending sec.
4216, Comp. OKLahoma Stats., 1921; Banking Laws, 1926, sec. 5, p. 74),
Unless authority to engage in the banking business is obtained under
these provisions, the transaction of such business by any individual
or corporation is prohibited, the laws in this connection providing
that "It shall be unlawful for any individual, firm, or association,
or corporation to receive money upon deposit or transact a banking
business except as authorized by the laws of the State of Oklahoma,
or of the United States, or to use or advertise, in connection with
any business other than the banking business, conducted under tho
banking laws of this State, the words: Banker, bankers, investment
banker, or any other word or term calculated to deceive the •oublic
into belief that such person, firm, association or corporation, is
engaged in the banking business." (Comp. Oklahoma Stats., 1921, sec.
4129; Banking Laws, 1926, sec. 44, -o. Zl).
(See also Levy v. Heed,
1918, 690 Okla. 130, 170 Pac. 497)."
Penalty for violation of above provision.
"Any person, firm, association or corporation violating any
of the provisions of this section, either individually or as an interested
party, in any firm, association or corporation shall be guilty of a
misdemeanor, and upon conviction thereof, shall "be fined in a sum not
less than three hundred dollars ($300.00) nor more than o'no thousand
($1,000.00) dollars, or 'by imprisonment in the county jail not lefjs
than thirty days nor more than one year, or by both ouch fine and imprisonment, *** ". (Comp. Oklahoma Stats., 1921, sec. 4129; 3anking
Laws, 1926, sec. 44, p. 31).
Enforcement of provisions and prevention of further violations.
i *** i t j_3 hereby made tho duty of the Attorney General to
i
enforce the provisions of this section; and in order to further prevent
the violation of the section, any court of competent jurisdiction in
this State is hereby authorized and empowered to grant an injunction
and to appoint a receiver to take charge of tho business and assets
of any person, firm, association or corporation found guilty of violating the provisions of this section, and to make all necessary and
proper orders to wind up such business and prevent a violation of this
section." (Comp. Oklahoma Stats., 1921, Gee. 4129; Banking Laws,
1926, sec. 44, o. 31).
OREGON.
Banking business may only be transacted by corporations.
"It shall be unlawful for any corporation, partnership, firm
or individual to engage in or transact a banking or trust business
within this atate, except by means of a corporation duly organized




- JL3o
-

'

31 •
»

JC-GQ1C '

"for such purpose."
(Laws of 1925, ch. 207, sec. 2; Banking Laws
1925, including amendments of 1929, sec. 2, p. 4 ) . "17o person,
firm, company, association, copartnership or corporation, either
domestic or foreign, except national "banks, not subject to the
sutrvision of the superintendent of banks and not required by the
provisions of this (bank) act to report to him, and which has not
received a certificate to do a banking or trust business from the
superintendent of banks, shall *** solicit or receive deposits or
transact business in the way or manner of a bank, savings bank or
trust company, or in such a way or manner as to lead the public to
believe that its business is that of a bank, savings bank or trust
company." There are also prohibitions against the use of the word
bank, banker, etc., or any other form of advertising indicating that
the business carried on is that of a bank. "Every person, firm,
company, association, copartnership or corporation doing any of
the things or transacting any of the business *** (referred to)
must transact such business according to the provisions of the bank
act.***"
(Laws of 1925, ch. 207, sec. 54; Banking Laws, 1925,
including ampnd;nents of 1929/ sec. 54, pp. 19 and 20).
Violation of provisions; •power of superintendent of -banks: penalty.
The superintendent of bank3 has authority to examine the accounts, books and papers of every person, firm, association or copartnership in order to ascertain whether such person, firm, association or copartnership has violated or is violating any provision
of the section last above referred to. Any person, firm, association
or copartnership violating any provision of this section must pay a
penalty of $100 a day for every day during' which such violation continues. Upon an action brought by the superintendent of banks an
injunction may be issued restraining any such person, firm, copartnership or association from further using such words or from further transacting business in such a manner as to lead the public to
believe that the business is that of a bank, savings bank or trust
company, and the court issuing the injunction may make such other
order as may be proper. (Laws of 1925, ch. 207, sec. 54; Banking
Laws, 1925, including amendments of 1929, sec. 54, pp. 19 and 20 ) .

PEMSYLVMIA.
License to engage i . business of private banking required.
r
Except as hereinafter provided, "no individual, partnership,
or unincorporated association shall hereafter engage, directly or indirectly, in the business of receiving deposits of money for safekeeping or for the purpose of transmission to another, or for any other
purpose, without having first obtained from a board, consisting of
the State Treasurer, Secretary of the Commonwealth, the Secretary of
Banking, - hereinafter referred to as the 'Board', - a license to engage in such business." (Act of June 19, 1911, P. L. 1060, sec. 1,




-~e.s s
&r-Q&~>s~

3C-G0-18—

as amended by Act of April 5, 1927, P. L. 106, Fo. 73, sec. 1, and
Act of April 25, 1<T29, P. L. 813, sec. 1; Pardon's Penna. S t a t s . ,
T i t l e 7, sec. 711, ?. 175).
The Board to License P r i v a t e Bankers has been reorganized
and continued by the provisions of the Pennsylvania Administrative
Code of April 9th, 1929, P. L. 177, Section 202 of A r t i c l e I I of
that Code provides t h a t "The following boards, commissions, and offices
are hereby placed and made.departmental administrative boards, commissions, or o f f i c e s , as the case may be, in the respective admini s t r a t i v e departments mentioned in the oreceding section, as follows:
In the Department of Banking, Board to License P r i v a t e
Bankers."
Section 428 of Article I? of the Administrative Code provides that "The Board to License Private Bankers shall consist of
the Secretary of Banking, who shall be chairman thereof, the Secretary of the Commonwealth, and the State Treasurer."
Section 1604 of Article XVI of the Administrative Code
provides with respect to the powers and duties of the Board to
License Private Bankers that "Subject to any inconsistent provisions
in this act contained, the Board to License Private Bankers shall
continue to exercise the powers and perform the duties vested in and
imposed upon the said board by the act, approved the nineteenth day
of June, one thousand nine hundred and eleven
(Pamphlet Laws, one
thousand and sixty), entitled 'An Act to provide for licensing and
regulating private banking in the Commonwealth of Pennsylvania, and
providing -oenalties for the violation thereof,' its amendments and
supplements . . . . " .
Statement required of applicant.
The applicant for a private banking license must file a
written verified statement with the Secretary of Banking showing
the amount of the assets and liabilities of the applicant and designating the place where the applicant proposes to engage in business, with the names and addresses of all partners or members of
the private bank. It must also be shown that the applicant is a
citizen of Pennsylvania; or, if the applicant is a partnership or
unincorporated association, that a majority of the members having
a controlling interest in the business are citizens of Pennsylvania.
(Act of June 19, 1S11, P. L. 1050, sec. 1, a s amended by Act of
t
April 5, 1927, P. L. 106, No. 73, sec. 1, arid Act of April 26, 1929,
P. L. 813, sec. 1; Purdon's Pe:ma. Stats., Title 7, aec. 711, p.
175).
Bond must be filed; purpose and amount of.
A bond executed by the applicant and a surety or sureties
approved by the board, must also be filed with the Secretary of







~J?3X
- 00 m

% G01D"

Banking to cover the faithful holding and repayment of all moneys
receivod on deposit and the faithful transmission of any money
which is received for transmission to another, The "bond must also, in the case of insolvency or "bankruptcy, cover the Payment of
the amounts recoverable to the assignee, receiver or trustee of
the applicant for the "benefit of the person making a deposit or
delivering money for transmission to another. The amount of the
"bond is to "be fixed by the "board "but is not to "be less than
$10,000 nor more than $50,000. (Act of June 19, 1911, P. L.
1060, sec. 1, as amended "by Act of April 5, 1927, P. L. 106,
Wo. 73, sec. 1, and Act of April 25, 1929, ?. L. 813, sec. 1;
Purdon's Penna. Stats., Title 7, sec. 712, pp. 177 and 178).
Money and securities may "be deposited in lieu of bond.
Money and securities equal to the amount of the penalty
fixed in the bond may be deposited by the applicant with the Secretary of Banking in lieu of such bond. The securities may consist of bonds of the United States, or bonds of the State of
Pennsylvania or any municipality thereof, or other securities
approved by the board. (Act of June IS, 1911, P. L. 1050, sec.
1, as amended by Act of April 5, 1927, P. L. 106, Ho. 73, sec.
1, and Act of April 25, 1929, P. L. 813, soc. 1; Purdon's penna.
Stats., Title 7, sec. 712, p. 178.).
Examination of applicant's standing; publication of application.
Upon recsiving an application for a private banking license,
"tho Secretary of 3anking shall cause to bo made an examination of
the financial standing and moral character of the applicant, as to
whether the statements contained in the application are true" and
this application must be advertised in the newspaper by tho Secretary of Banking at the expense of the applicant. (Act of June
19, 1911, P. L. 1060, sec. 1, as amended by Act of April 5, 192V,
P. L. 106, 5To. 73, sec. 1, and Act of April 26, 1929', P. L. 813,
sec. 1; Purdon's Penna. Stats., Title 7, sec. 713, p. 179).
License issued in discretion of board; fee; when location may be
changed.
After advertisement of the application, "the board may,
in its discretion, approve or disapprove the application". If
approval is granted, the bond, or any money or securities deposited in lieu thereof, shall be accepted and held by the
Secretary of Banking for the purpose for which required, and
he shall issue a license authorizing the applicant to engage
in a private banking business at the place specified in the
license certificate. A fee of fifty dollars is required for
such a license, which may not be transferred or assigned.




-233

-

The written approval of the hoard is required for the transaction of business at any place other than that specified in
the license certificate.
(Act of June 19, 1911, P. L. 1060,
sec. 1, as amended by Act of April 5, 1927, P. L. 106, No.
73, sec* 1, and Act of April 26, 1929, P. L. 813, sec. 1;
Purdon1s Penna. Stats., Title 7, sec. 713, p. 179).
License must be posted; duplicate license may be issued.
The license must be posted in the place of business
of the licensee and it is made unlawful to pest such license
in a place other than that designated as the licensee's place
of business.
Provision is also made for the issuance of a
duplicate license in case the original is lost or destroyed.
(Act of June 19, 1911, P. L. 1060, sec. 1, as amended by Act
of April 5, 1927, P. L. 106, No. 73, sec. 1, and Act of April
26, 1929, P.-L. 813, sec. 1;. Purdon's Penna. Stats., Title
7, sec. 714, p. 180).
Bonds and money or securities constitute trust funds for
depositors.
The money and securities deposited with the Secretary
of Banking and money which may be paid on any bond in case of
default, constitutes a trust fund for the benefit of depositors in the private bank and of such -lersons who have delivered
money to such bank for transmission to another.
Such beneficiaries are entitled to an absolute 'preference as to such
moneys or securities over all general creditors of the bank.
In the event of the insolvency or bankruptcy of the bank,
such moneys and securities, on the order or judgment of a
court of competent jurisdiction, must be delivered by the
Secretary of Banking to the assignee, receiver or trustee of
the bank designated in such order or judgment. (Act of
June 19, 1911, P. L. 1060, sec. 1, as amended by Act of
April 5, 1927, P. L. 106, No. 73, sec. 1, and Act of
April 26, 1929, P. L. 813, sec. 1; Purdon's Penna. Stats.,
Title 7, sec. 715, p. 180).




-23-/

-

jt-Oe—r

„JCM&818

Distribution of assets la case of insolvency.
In case of the insolvency of any private banker, the distribution of the assets, other than the proceeds from the bond or securi t i e s deposited, shall bo made and preferred in the following order:
1. To the payment of a l l depositors of the private banker.
Bona fide holders of certified checks, or of certificates of deposit,
or of checks or drafts of the private banker given in exchange for or
in payment of checks or drafts of depositors drawn on the private
banker, not exceeding the balance to the credit of the depositor, are
also treated as depositors within the meaning of this section.
2. To the payment and discharge of a l l the remaining l i a b i l i t i e s of the private banker.
3. If there is anything remaining, i t is distributed to the
individual or the partners or members of the private banker according to their legal rights. (Act of June 19, 1911, P. L. 1060, sec. 1,
as amended by Act of April 5, 1927, P . L. 106, No. 73, sec. 1, and
Act of April 26, 1929, P. L. 813, sec. 1; Pardon's Penna. S t a t s . ,
Title 7, sec. 716, p . 181).
List of licenses granted must bo published annually; interest on deposits in lieu of bonds; custody of such deposits.
O the f i r s t day of January, the Secretary of Banking must
n
print annually a l i s t of a l l licenses grantod and unrevoked. K must
o
also pay over to each licensee a l l of the interest received by him
upon any money or securities deposited in lieu of the bond. All
money or securities must be turned into the State Treasury and receipted by the State Treasurer to the Secretary of Banking and the
depositor, and is subject to withdrawal only upon the warrant of the
Secretary of Banking. All interest coupons on any securities deposited shall be surrendered when due to the owners 'upon their request.
(Act of June 19, 1911, P. L. 1060, sec. 1, as amended by Act of April
5, 1927, p. L. 105, No. 73, sec. 1, and Act of April 26, 1929, ?. L.
813, sec. 1; Purdon's Penna. S t a t s . , Title 7, sec. 717, p. 182).
Satisfaction or release of mortgage deposited as security in lieu of
bond.
The laws contain provisions for the satisfaction or release of
any mortgage, judgment or lien which may be accepted in lieu of a
bond. (Act of M y 23, 1913, P. L. 334, sec. 1; Pardon's Penna. S t a t s . ,
a
Title 7, sec. 718, p . 182).
Character of books which must be kept.
Each private bank must keep such books of account as are approved by the Secretary of Banking. Such books must show full and

- »3*
•*
*

Xu6818"

complete records of all business transacted and a full statement of all
assets and liabilities. (Act of June 19, 1911, P. L. 1060, sec. 2;
Purdon's Penna. Stats., Title 7, sec. 719, p. 183).
Statement of assets and liabilities, and publication of, required.
Each -private bank is required at least two times each year
to file with the secretary of banking a written statement, under oath
and in such form as the secretary may prescribe, of the amount of its
assets and liabilities. This statement must be made as of such days
as the secretary may designate by a written notice mailed to the private bank and within ten days after the date of such notice. A copy
of the statement must also be published in the newspapers. (Act of
June 19, 1911, P. L. 1060, sec. 2; Purdon's Penna. Stats., Title 7,
sec. 719, p. 183).
Revocation of license; notice of discontinuance of business.
The license may be revoked by the board for cause shown, and
if it is revoked or surrendered, no refund of the license fee will be
made. In case the license is revoked, it must be surrendered within
twenty-four hours after written notice of such revocation has been given
to the holder, and the bond or money and securities received from the private bank "shall continue to be held by the Commissioner (Secretary) of
.Banking until otherwise directed by the order or judgment of a court of
competent jurisdiction". In case of a discontinuance of business, "notice thereof must previously have been published once a week during the
thirty days in one newspaper of general circulation, and the legal periodical, if any, published in the city or county where such business ha3
been conducted, or nearest adjacent county". (Act of June 19, 1911, P. L.
1060, sec. 2; Purdon's Penna. Stats., Title 7, sec. 719, p. 183).
Violations; penalties.
Any person, partnership, or unincorporated association transacting a banking business without a license, or who carries on such
business after the license has been revoked, or who, without such
license, uses the word "banking" or any equivalent term in advertising the business, or who fails to display the license cortiiicate,
or who fails to keep books and make reports as required, or who advertises or publishes in any manner, "either orally or in writing,
any statement intended to convey or actually conveying the idea or
impression that such licensee is in any way under the supervision of
this State, or of any officer thereof, or that this State, or any
officer thereof, has passed in any way whatsoever upon the responsibility, solvency, or qualifications of such licensee to engage
in such business; or that this State, or any officer thereof, has
examined any accounts of said licensee or has in any way certified
that such licensee is in any way a fit person to carry on such business, shall be 3uilty of a misdemeanor, and -ounished as hereinafter
provided." (Act of June 19, 1911, P. L. 1060, sec. 3; Purdon's




-*?3£
^-49

-a-OQlfi"

Penna. S t a t s . , T i t l e 7, sec. 720j p . 18?).
False Bwearing as to certain f a c t s .
Any person who, in any application for a private baiiking
l i c e n s e or in any r e p o r t , shall s"?oar f a l s e l y us to the amount of the
a s s o t s and l i a b i l i t i e s of a licensee, or in any other p a r t i c u l a r or
i n any a f f i d a v i t s h a l l sr/ear falsely as to any fact therein s t a t e d ,
s h a l l "be g u i l t y of perjury. (Act of June 19, 1911, P. 1. 1060, sec.
4; Purdon's Feiina. S t a t s . , T i t l e 7, sec. 721, p . 184).
Failure to m?ke or publish r e p o r t s ; penalty.
Any private hank which f a i l s to liiake any required report or to
publish any reports as required within the specified time, must forf e i t the sum of twenty dollars for every day that such report or i t s
publication i s delayed or withheld. (Act of June 19, 1911, P. L.
1060, sec. 5; Purdon's Penna. S t a t s . , Title 7, sec.722, p . 184).
Recovery of money deposited for transmission; burden of proof i n suit*
There are also provisions fixing the burden of proof i n an a c tion against a licensee to recover money deposited with such licensee
for transmission. (Act of June 19, 1911, P. L. 1060, sec. 6; Purdon's
Penna. S t a t s . , T i t l e 7, sec. 722, p . 185).
Forwarding of money for foreign transmission.
Money received for transmission to a foreign country by any
licensee must be forwarded within five days a f t e r i t s receipt and
every person who f a i l s to so forward within the specified time i s
g u i l t y of a misdemeanor and punishable as hereinafter provided. (Act
of June 19, 1911, ? . L. 1060, sec. 7; Pardon's Penna. S t a t s . , T i t l e 7,
s e c . 724, p . 185).
A p p l i c a b i l i t y of foregoing' provisions.
The above provisions became effective on December 1, 1911, and
they applied "to a l l persons now or hereafter engaging i n s a i d (private
banking") business" except as provided under the following caption ent i t l e d "Exceptions from foregoing provisions". (Act of Juno 19, 1911,
P. I . 1060, sec. 13; Purdon's Penna. S t a t s . , T i t l e 7, footnote to sec.
711, p . 176).
Sxce-ptions from foregoing -provisions.
The foregoing provision's s h a l l not apply:
(1) To any corpox-ation authorized to do business under the
Pennsylvania banking lews, to any corporation authorized to receive
deposits under the laws of Pennsylvania, nor to any national bank.




-J3n

-

g"3a -"^

-X.68ia~

(S) To any hotel keeper who receives money for safekeeping
from a guest.
(3) To any express, steamship or telegraph company receiving
money for transmission.
(4) To any individual, partnership, or unincorporated association who would otherwise'be required to comply with the foregoing
provisions, "who shall file with the Commissioner (Secretary) of
Banking a bond, in the sum of one hundred tho\isand dollars, approved
by the board as to form and sufficiency for the purpose, and conditioned as *** (provided above), whore the business is conducted in
a city of the first or second class; and if conducted in a city of
the first class, and if conducted elsewhere in the State, such bond
shall be in the sura of fifty thousand dollars; or in lieu thereof,
money or securities approved by the Commissioner (Secretary) of Banking, of the same amounts; Provided, however, That the Secretary of
Banking shall examine the books, papers., and affairs of such individual, partnership, or unincorporated association, and if satisfied
from the examination that the business of such individual, partnership, or unincorporated association is conducted in an unauthorized
or unsafe manner or is in an unsafe or unsound condition to continue
business, he may, after hearing had upon due notice given with the
approval and consent of the Attorney General, take possession of the
business and property of such*individual, partnership, or unincorporated association, and shall then proceed in the same manner as
provided by law ho shall proceed after having taken possession of
the business and property of any *** person subject to the supervision of the Banking Department. If in the opinion of the Secretary of Banking the business of any such individual, partnership,
or unincorporated association is in such an unsafe and unsound condition that immediate action is necessary, the Secretary may forthwith, without such hearing and consent of the Attorney General,
take possession of the business and property of such individual.,
partnership, or unincorporated association; ***"
(5) To any individual, partnership,, or unincorporated associ-,
ation, licensed under the laws of Pennsylvania to do a. brokerage ^business,, holding a, membership in a lawfully incorporated brokerage exchange, and doing only such banking as is incidental to such brokerage
business. The' books or records ^showing the deposit or account of any
depositor with any individual, partnership, ,or unincorporated association filing the bond', money, or securities referred to above, are not
subject to any visitorial power, inspection, or examination by the
Commissioner (Secretary) of Banking, except as hereinbefore provided;
nor to examination or inspection by, or production in, any department
or agency of .the Government, State or municipal; nor to inspection,
examination, or production in any court in any judicial proceeding
except in cases of insolvency or bankruptcy, or a judicial proceeding
or investigation involving the rights and liabilities of a creditor
or depositor.
(S) To any person, firm, partnership, or unincorporated association engaged in business as private bankers "continuously and in the
same locality" for a period of seven years prior to June 19, '1911.•




(Act of June 19, 1911, ? . L. 1060* sec. 8, as amended by Acts of May
2, 1925, P. L. 502, s e c X; and Mardh 17, 1927, ? . fc. 39, sec. 1;
Purdon's Penna* S t a t s ; j t i t l e 7, Sec. 725, pp. 185-187).
Other v i o l a t i o n s .
Any p r i v a t e banker r;ho violates any of the foregoing provisions,
"the violation of which has not hereinbefore been made a misdemeanor
or a felony, s h a l l be g u i l t y of a misdemeanor, and punished as hereina f t e r provided". (Act of June 19, 1911, P. I . 1060, s e c . 9; Pardon's
Penna. S t a t s . , T i t l e 7, sec. 726, p . 187.).
Penalty for v i o l a t i o n s .
"Every person found g u i l t y of a misdemeanor under any of the
*** (foregoing provisions) s h a l l be sentenced to an imprisonment not
exceeding two years, or be fined in an amount not exceeding one
thousand d o l l a r s , or both or e i t h e r , a t the discretion of the court."
(Act of June 19, 1911, P. I . 1060, s e c . 10; Purdon's Penna. S t a t s . ,
T i t l e 7, sec. 727, p . 187).
Definition of "person".
The word "person" as used below "means an individual, a p a r t nership, or an unincorporated association". (Act of June 15, 1923,
P. L. 809, sec. 2, as amended by Act of May 5, 1927, p . L. 762, sec.
1; Purdon's Penna. S t a t s . , Title 7, sec. 2, p . 13).
Department of Banking; scope of supervision; powers; d u t i e s .
"There s h a l l continue to be a separate and d i s t i n c t department, known as the Department of Banking, charged with the supervision of a l l the *** persons hereinafter described, and with the
duty of taking care that the laws of t h i s Commonwealth in r e l a t i o n
thereto s h a l l be f a i t h f u l l y executed, and that the greatest safety
to the depositors therein or therewith and to other interested persons s h a l l be afforded. *** The said supervision, duties, and powers
s h a l l *** extend and apply to: a l l private or unincorporated banks,
except such as are or shall.be exempted by law, and to a l l such i n d i v i d u a l s , p a r t n e r s h i p s , and unincorporated associations, as are or
s h a l l be by law made subject to the supervision of said department,
***." (Act of June 15, 1923, P. L. 809, sec. 4; Purdon's Penna.
S t a t s . , T i t l e 7, s e c . 4 , pp. 14 and 15 ) .
Assessment against persons to pay expenses of banking department;
f a i l u r e or refusal to pay.
All the expenses of the department of banking including the
cost of regular examinations "shall be charged to and paid by the
*** persons subject to the supervision of the department, in
equitable proportions, a t such times and'in such manner, as the
s e c r e t a r y s h a l l by general rule or regulation annually p r e s c r i b e :
* * * ii j 0 T a f a i i U r e or refusal, a f t e r t h i r t y days written n o t i c e ,
to pay any sum lawfully'assessed or charged by the secretary, the




s e c r e t a r y "shall c a l l upon the ijepartraent of Justice to "bring an
action a t law. to recover the same". (Act of June 15, 1923, . ? . L.
809, sec. 9, as amended by Acts of April 13, 1927, P. L. 182, s e c .
1, and April 25, 1929, P. I . 716, sec. 1; Purdon's Pjnna. S t a t s . ,
T i t l e 7, sec. 9 ( b ) , pp. 17 and 18 ) .
Examination of.
"Every *** person included within the supervision of the
department ***, together with a l l the property, a s s e t s , and r e sources of such *** person, s h a l l he subject to inspection and examination" by the secretary, his deputies, or any qualified examiners of the department of banking. (Act of Juno 15, 1923, P.
L. 809, sec. 13; Purdon's Ponna. S t a t s . , T i t l e 7, sec. 13, p .
21).
ITamber and character of examinations; powers of examiner, reports of.
I t i s the duty of the secretary at l e a s t once each year,
to examine the books, papers, and a f f a i r s of every person subject
to the supervision of the department of banking. The examiner i s
empowered to make a thorough examination into a l l the business and
a f f a i r s of the person and of a l l property, assets and resources
wherever s i t u a t e d . The examiner also has power to examine under
oath or otherwise, any of the o f f i c e r s , agents, employees or members
of such person in possession of any assets or having knowledge of
any a s s e t s of the person. The examiner i s required to make a full
and d e t a i l e d report of the condition of the person who was examined,
or such special report as may be directed by the secretary. (Act of
June 15, 1223, p . i . 809, sec. 14, as amended by Act of May 5,
1927, p . L. 762, s e c . 5; lurdon's Penna. S t a t s . , Title 7, sec. 14
( a ) , p . 21 ) .
Special examinations; cost of.
"The s e c r e t a r y may also at any time, make such special i n v e s t i g a t i o n s or examinations as,*in his opinion, the exigencies of
any case may r e q u i r e " ; and his power and duties and the powers and
duties of any examiner assigned by him to conduct such special examination are the same as in the case of regular examinations.
(Act of June 15, 1923, ? . I . 809, s e c . 14, as amended by Act of
May 5, 1927, p . I . 762, sec. 5; Purdon's penna S t a t s . , Title 7,
s e c . 14 ( a ) , p . 2 1 ) . "The expenses incurred in connection with any
special examination or investigation of any * * * person * * *
s h a l l be charged to and paid by such * * * -person.^
(Act of June
15, 1923, P. L. 809, sec. 9, as amended by Acts of April 13, 1927,
P. L., 182, sec. 1, and April 25, 1929, ?. L. 716, sec. 1; Purdon's
penna. S t a t s . , T i t l e 7, sec. 9 ( b ) , p . 18).




*,,91
False testimony of officer, employee, e t c .

.frtiOlC '
to exardner; penalty.

The wilful false shearing in any inquiry i n s t i t u t e d "by an
examiner during an oxanination "by any officer, agent, employee or
member of any person "shall he perjury, and subject, upon convict i o n thereof, to the same punishment as i s or may he provided by
law for the punishment of perjury. Upon f a i l u r e of any of the
i n d i v i d u a l s , aforesaid, to make answer to any such inquiry, the
Attorney General, upon request of the secretary, s h a l l make i n formation thereof to the court, whereupon said court, after hearing,
s h a l l make such order as the occasion r e q u i r e s . " (Act of June 15,
1923, P. I . 809, sec. 14, as amended by Act of May'5, 1927, P. L.
762, s e c . 5; Purdon's Penna. S t a t s . , Title 7, sec. 14 (b), p . 2 2 ) .
Reports of condition; number and character of; publication required.
Every person subject to the supervision of the department of
banking must make to the secretary not l e s s than two nor more than
five verified reports of condition during each year, the number,
form and manner of such reports to be prescribed by the secretary.
Each report-must exhibit in d e t a i l and under appropriate heads the
resources and l i a b i l i t i e s of the person a t the close of business
on any past day specified by the secretary, and must be sent to
him within five days or within such further tine as he may allow,
a f t e r the receipt of the s e c r e t a r y ' s request to make such r e p o r t .
Abstract summaries of two of the r e p o r t s , designated by the secretary,
i n each year must be published i n a newspaper and proof of such
publication must be furnished to the secretary. (Act of June 15,
1923, P. L. 809, s e c . 15; Purdon's Penna. S t a t s . , T i t l e 7, sec. 15,
p p . Z2 and 23 ) .
Special reports of condition.
"The s e c r e t a r y s h a l l have power to c a l l for a special report
from any * * * person under the supervision of tho department, * *
* whenever, i n his judgment, tho same may be necessary to a f u l l
and complete knowledge of * * * h i s condition." (Act of June 15,
1923, P . L. 809, sec. 15; Purdon's Penna. S t a t s . , Title 7, s e c . 15,
p . 23).,
Reports and publications required above to be in l i e u of a l l similar
reports and publications heretofore required.
The laws of t h i s State provide that, "Tho reports and publications provided for i n * * * (the above provisions r e l a t i n g to regular
and special reports of condition) s h a l l be i n l i e u of a l l reports and
of a l l publications for similar purposes heretofore required by law
to be made." (Act of June 15, 1923, P. L..809, sec. 15; Purdon's
Ponna. S t a t s . , T i t l e 7, sec. 15, p . 2 3 ) . This provision apparently
has the effect of repealing that portion of the Act of Juno 1 1 , 1911
'(P. L. 1060, sec. 2; Purdon's Penna. S t a t s . , Title 7, sec. 719, p .




-~?v7 ,—-SB-?

fX-6S12' '

183),.'hereinbefore referred to under tho daptlon titled "Statement of '
assets and liabilities, and publication of, required", which requires
private banks to file in the office of the Socrotary of Banking a •
sworn statement of its assets and liabilities and to publish a copy of
such statement in the newspapers.
Failure to make or publish reports; penalty.
A penalty,is prescribed in case a person fails to make and transmit and to publish any roport of condition referred to above. (Act of
June 15, 1923, P. L. 809, sec. 15; Purdon's Penna. Stats., Title 7,
sec. 15 (b), p. 23).
Report of gross receipts to department of Revenue and paymont of tax
thereon.
The laws of this State also require a private bankor on or beforo tho first Monday of December of each year, to make a written
sworn statement to the Department of Revenue in which must be set
forth the full amount of "his gross receipts from commissions, discounts, abatements, allowances, and all other receipts" arising from
his business during the year ending with the 30th day of November
preceding the date of such return, "and shall forthwith pay into
the State Treasury, through the Department of P.evenue, one per centum,
upon the aggregate amount of such gross receipts * * * ". (Act of
May IS, 1861, P. L. 708, sec. 1, as amended by Acts of June 27,
1895, P. L. 396, sec. 1, June 13,. 1901, P. I. 559,ffo.266, and
April ,25, 1929, P. L. 679, sec. 1; Act of April 9, 1929, P. L. 343,
Art VII, sec. 719 a ) . "All * * private bankers shall be required
to pay license as heretofore, in addition to the amounts which they
shall be required to pay under the provisions of this Act." (Act
of May 16, 1861, ?. I. 708, sec. 4 ) .
Additional report to Department of Revenue upon commencing buoinass.
. "Every private banker, hereafter commencing business in this
Commonwealth, whether the business be conducted by an individual, or
more than one person in partnership, shall, within sixty days after
commencing such business, make a report to the Department of Revenue,
setting forth the name or names of the persons engaging in such business, tho name under which the business is boing conductod, its
location, and tho amount of capital invested therein." (Act of
April 9, 1929, ?. -L. 343, Art. VII, Sec. 719 b ) .
Penalty for failure to make above reports to Department of Revenue.
Any private banker who neglects or refuses to make the return
of gross receipts or the report referred to above to the Department
of Revenue, "shall, for every Such neglect or refusal, be subject
to a penalty of one thousand dollars", which shall be collected by




the Department of Revenue;
XVII, sec. 1707).

(Act of April 9, 1929, P. t . 343, Art.

Branches; general establishment of prohiMtedj
The laws of this State provide that "no individual, partnership,
or unincorporated association carrying on a banking business s h a l l
establish^ maintain, or operate, e i t h e r d i r e c t l y or i n d i r e c t l y , any
branch bank, branch office, agency, sub-office, sub-agency, or branch
place of business, within the Commonwealth of Pennsylvania, for the
t r a n s a c t i o n of any p a r t of * * * , h i s , or t h e i r businoss, but a l l of
the,business of such * * *, i n d i v i d u a l s , p a r t n e r s h i p s , and unincorpo-*
r a t e d associations s h a l l be carried on solely and exclusively a t * * *
h i s , or their p r i n c i p a l place of business." (Act of April 37, 1927,
P. 1. 400, sec. 1; Purdon's Penna. S t a t s , , Title 7, sec. 302, p , 100).
Exceptions} establishment permitted within corporate limits of places
.where national banks were operating branches on March 1, 19^7.
"This act s h a l l not apply to * * * any individual, p a r t n e r s h i p ,
or unincorporated association carrying on.a banking business which has
* * * , h i s , of t h e i r p r i n c i p a l place of business in a c i t y , borough,
or township within the Commonwealth of Pennsylvania, in which one or
more national banking a s s o c i a t i o n s , * * * was, on March 1, 1927,
operating one or more branch banks, branch offices, afoncies, subo f f i c e s , subagencies, or branch places of business, for the t r a n s a c tion of any p a r t of i t s business; and any such * * *, individuals,
p a r t n e r s h i p s , and unincorporated associations may hereafter e s t a b l i s h ,
subject to the approval,of the Secretary of Banking,, and thereafter
maintain and operate branch banks, branch offices, agencies, subo f f i c e s , subagencies, and branch places of businoss for the transacr
tion of any p a r t of * * *, h i s , or t h e i r business, but only within
the corporate l i m i t s of the c i t y , borough, or township in which i t s
p r i n c i p a l office i s located and in which such national 'banking assoc i a t i o n . w a a / on March 1, 1927, operating one or more branch banks,
branch offices, agencies, suboffices, subagencies, or branch places of
business. The r i g h t to e s t a b l i s h and maintain branch banks, branch
o f f i c e s , agencies, suboffices, subagencies, or branch places of b u s i ness , under the provisions of t h i s section, s h a l l be limited to the
t e r r i t o r y included within the corporate limits on March 1, 1927, of
the respective c i t i e s , boroughs, or townships in which such,national
banking associations were on that date operating one or more branch
banks, branch o f f i c e s , agencies, suboffices, subagencies, or branch
places of business as aforesaid; and such r i g h t s h a l l . n o t extend to
additional, t e r r i t o r y which may, a f t e r March 1, 1927, be added to such
c i t i e s , boroughs, or townships, by annexation, consolidation with one
or more municipal corpox-ations or otherwise, nor s h a l l i t extend to
other portions or divisions of municipal corporations to which such
c i t i e s , boroughs, or townships may be annexed, or vdth which > they may.
be consolidated a f t e r that date; th& intention being to limit to the
respective corporate limits of such c i t i e s , boroughs, or townships as




"they existed on March l j ,193 V1, tha right to o s t a b l i s h and maintain the
branch hanks, branch offices, agencius, suboffices, suhagencios, and
branch places of business authorized in this section." (Act of April
27, 1927, p . L. 400, s e c . 3; purdon's penna. S t a t s . , Title 7, soc. 304,
p . 102).
Other exceptions are that the. act does not aoply to branches
established or for which locations had been secured p r i o r to March 1,
1927, or to branches r e s u l t i n g from consolidations effective p r i o r to
April 1, 1927; "and such * * * individuals, p a r t n e r s h i p s , and unincorporated associations s h a l l have the r i g h t to relocate the same within
the corporate l i m i t s of the c i t y , borough, or township in which the
p r i n c i p a l place of business i s located a t the time of such relocation,
subject to the approval of the Secretary of Banking." (Act of April
27, 1927, P . L. 400, sec. 2; Purdon's Penna. S t a t s . , T i t l e 7, s e c .
303, p . 101..).
n
Surety on bonds.
An "unincorporated bank" i s -prohibited from acting generally
as "surety on'any bonds". (Act of toy 16, 1923, P. L. 248, s e e s . 1-3;
Purdon's Penna. S t a t s . , •Title 7, sees. 281-283, pp. 98 and 99).
Preservation of records.
Every "private banker" iuust "preserve, in such form and manner
t h a t they may be r o a d i l y produced on proper demand, a l l * * * h i s * *
* records of o r i g i n a l ov final entry, including cardB used under the
card system, and deposit s l i p s or t i c k e t s , for a peridd of seven years
from the date of making the i a s t entry on the same." (Act of April
4, 1929, P. L. 141, sec. 1; Purdon's Penna. S t a t s . , Title 7, s e c . 321,
p . 104).
Advertising as t r u s t company or using word " t r u s t " as part of t i t l e .
The laws of this s t a t e p r o h i b i t any "person, copartnership,
(or) limited- copartnership," from advertising or putting forth any
sign as a t r u s t company or using the word " t r u s t " as a p a r t of h i s or
i t s name or t i t l e . A penalty i s prescribed for a violation of t h i s
p r o h i b i t i o n . (Act of April 22, 1909, P . L. 121, s e c . 2, as amended
by Act of May 19, 1923, f, L. 274, sec. 1; Purdon's Penna. S t a t s . ,
T i t l e 7, sec. 687, p . 169).
Unauthorized or unsafe practices or other violations' of law; secretary
may issue order to discontinue.
Whenever i t appears to the secretary that any person has v i o l a t e d any provision of law, or i s conducting business in an unauthorized or unsafe manner, the secretary may issue an order directing such
person to discontinue such v i o l a t i o n of law or unauthorized or unsafe




practices. (Act of June 16, 19?3, p. L. 809, sec. 20; Pardon's penna.
Stats., Title 7, sec. 20, p; 25J»,
Secretary may take possession of business; wheni
"The secretary may, after hearing had upon notice given with
the japproval and consent of the Attorney General, take possession of
the "business and property of any * * * person subject to the supervision of the department, whenever it shall appear to him that such * *
* person:
"1. Has violated any law regulating * * * his business * and has
persisted in such violation in disregard of an order duly made by the
secretary;
•'II. IS conducting business in an unauthorized or unsafe manner
and has persisted in disregard of an order duly made by the secretary;
"III. Is in an unsafe or unsound condition to continue business;
Provided, in such case,; That the secretary may forthwith ^without
such hearing and consent of the Attorney General, take possession of
the business and property of any S t c * * * pel's on. receiving moneys
jih
on deposit, when and ifj in his opinion the protection of depositors
and the public requires such peremptory action;
"IV. Has an impairment of capital, which has not been restored
or made good within the time fixed by order of the secretary;
"V. Has suspended payment of obligations;
"VI. Has neglected or refused to comply with the terms of any
lawfully issued order of the secretary}
"VII. Has refused, upon proper demand, to submit the records and
affairs of the business to the secretary* a deputy, or any duly authorized examiner or agent of the department;
"VIII. Has\refused to be examined upon oath or affirmation, regarding such affairs;
11

IX. Ie in the hands of a receiver appointed by any court, or in
any bankruptcy proceeding, or of an assignee or trustee for creditors
appointed by such * * * person.
'
"The secretary may, in likemanner, take possession of the business and property of any privkte or unincorporated bank, or the estate
of any private banker, otherwise exempt from the supervision of the
department, whenever such private or unincorporated bank shall have
made an assignment for the benefit of creditors, or for any of the causes
mentioned hereinbefore in this section." (Act of June 15, 1923, P. I.
809, sec. 21, as amended by Act of May 5, 1927, P. L. 762, sec. 7;




Pardon's Penna. Stats., Title 7,»sec. 21, pp. 25 and 26.)
Certificate of taking possession; secretary to supersede receiver
previously appointed*
When the secretary has taken possession of the business and property of any person, he mast make a certificate setting forth that he
has so taken possession, and must file such certificate in his office
"and cause a certified copy thereof to he filed in the office of the
prothonotary, * * *'."' After the filing of such certified copy, the
secretary "shall supersede any receiver previously appointed by any
court for, or any assigneu or trustee for creditors appointed by, such
* * * person." (Act of June 15, 1923, P. L. 809, sec. 22; Purdon's Penna. Stats., Title 7, sec. 22, pp. 27 and 28).
Secretary may be enjoined from continuing possession.
At any time within ten days after the secretary takes possession
of any person, such person may apply to the court for an injunction to
restrain the secretary from continuing such.possession. If it appears
from satisfactory evidence that there is just cause for the taking and
continuing of possession, the secretary shall not be enjoined; but if
this evidence can be overcome by proper proof produced by.the person,
"the court shall direct the secretary to refrain from further proceedings and to surrender such possession." (Act of June 15, 1923, P, L.
809, sec. 23, as amended by Act of May 5, 1927, ?. L- 762, sec. 8;
Purdon's Penna. Stats., Title 7, sac. 23, p. 28).
Notice of taking possession to parties holding assets; effect on liens, etc.
U h secretary must give notice in writing to all parties holding
Jo
assets of the fact that he has takon possession of the property and business of a person. " T one having such notice or actual knowledge that
Io
the secretary has so takon possession shall have a lien or charge against
any of the assets of such * * * person for any charge, payment, advance,
or clearance thereafter made or liability thereafter incurred." The
status of all parties becomes fixed on the date the secretary files the
certificate of possession in his office. (Act of June 15, 1923, P. L.
809, sec. 25, as amended by Act of May 5, 1927, P. L. 762, sec*"9; Pardon's Penna.. Stats., Title 7, sec. 25, p. 29).
Inventory of assets.
. The Secretary mast make a complete inventory of the assets of any
person, whose property and business he has taken over. (Act of June 1&,
1923, P. L. 809, sec. 26; Purdon's Penna. Stats., Title 7, sec. 26, p.30).
Secretary may suspend or continue business.
The secretary is authorized, upon taking possession of the property
and business of any person, "to continue or suspend the business for such




*4(C ~
• 97 .. —
.

• X-OQlft-

"period as he may deem necessary to enable him to determine whether to
liquidate the affairs of such * * * person, and, during such period,
to take such action as- in his judgment is necessary to conserve the assets
and business.1' (Act of June 15, 1923, P. L. 809, sec. 27; Purdon's
Penna. Stats., Title 7, sec. 27, p. 30).
Surrender of possession by secretary.
The secretary may, upon conditions approved by him, surrender possession of the business of any person for the purpose of permitting such
person to resume business, to sell or convey his property and franchise,
or to merge or consolidate his business with that of another person, or
because he is without funds to continue or liquidate the business and
property of such person. When possession is so surrendered, the secretary
must issue an order to that effect, which order must be filed in his office.
A certified copy of the order must also be filed in the office of the prothonotary. (Act of June 15, 1923, P.L. 809, sec. 28, as amended by Act of May
5, 1927, P.L. 762, sec. 10; Purdon's penna. Stats., Title 7, sec. 28,p,30).
Powers of secretary as receiver.
When the secretary takes possession of the business and property
of any person, he has the same rights, powers and duties as a receiver
appointed by any court of equity in the State of Pennsylvania. (Act of
June 15, 1923, p.L. 809, sec. 29, as amended by Act of May 5, 1927, P.I.
762, sec. 11; Purdon's Penna. Stats., Title 7, sec. 29, p. 20).
Secretary to continue possession until affairs are liquidated; exceptions.
When the secretary has taken possession of the business and property
of any person, he shall hold such possession until the affairs of.such
person have been liquidated by him, unless (1) he is directed by the court
to surrender such possession, (2) he has permitted a resumption of business,
or a sale or conveyance of property and franchises, or a merger or consolidation, or (3) the depositors and other creditors of such person and the
expenses of such liquidation have been paid in full. (Act of June 15, 1923,
P.L. 809, sec. 31; purdon's Penna. Stats., Title 7, sec. 31, p..32).
Liquidation.
The laws of this State also contain detailed provisions with reference to the liquidation of persons and the duties and powers of the Secretary of Banking in connection therewith. These provisions deal with the
duty of the secretary to make an inventory and appraisement of assets of
the person, the disposition of all funds, property and investments held by
the person in a fiduciary capacity, the nbtice the secretary must give to
depositors and creditors,, the proof of claims by depositors and creditors,
the allowance of such claims, the filing by the secretary of a partial, or
final statement of receipts and expenditures and a list of claims allowed or
rejected, the distribution of dividends to approved claimants, the hearing
and decision of controverted claims,and the payment of liquidation expenses.
(Act of June 15, 1923, ?. L. 809, sees. 40, 41,43,45 and 49, and sees. 38,
42,44,46,47, and 48, as amended by Act of May 5, 1927, P.L. 762, sees. 1722; Purdon's Penna. Stats., Title 7, sees. 38,40-49, pp. 37-46).




~A?7
/m 08-A

<*; 681??-

BHO^iSLAftl).
Private banking business apparently prohibited.
The following provisions would seem to prohibit a "person,
partnership or association" from transacting a general "banking business.
"Ho corporation, either domestic or foreign, and no person, partnership, or association, except banks, savings bank, or trust companies
incorporated under the laws of this state" shall hereafter make use of any
sign, or other advertising indicating that the place of business or the
business carried on is that of a "bank, savings bank, or trust company;
nor shall any such corporation, person, association, or partnership receive deposits and transact business in the way or manner of a bank, savings bank, or trust company, or in such a way or manner as to lead the
public to believe, or as, in the opinion of the bank commissioner, might
lead the public to believe, that its business is that of a bank, savings
bank, or trust company; * * *". (P.L. 1909, ch. 404, sec. 24; Banking Laws,
1939, sec. 24, p. 71.)
Examination by bank commissioner to ascertain whether law is being violated.
The bank commissioner and his assistants have authority "to
examine the accounts, books, and papers of any corporation, person, partnership, or association which makes a business of receiving money on
deposit, in order to ascertain whether such corporation, person, partnership, or association has violated or is violating any provision of this
title; * * *". (P.L. 1909, ch. 404, sec. 25; Banking Laws, 1929, sec. 25.
pp. 71 and 72.)
Penalty for violation; banking commissioner must report violation to Attorney
General; procedure to restrain further violation.
Any person, partnership, or association violating any provision
of the section first above quoted must pay a penalty of one hundred dollars a day for every day during which such violation continues, arid all such
violations must be immediately reported by the bank commissioner to the
Attorney General. The penalty may be recovered by an information or other
appropriate proceeding brought in the Superior Court for the County in
which said violation has occurred, in the name of the Attorney General.
Upon such information or other proceeding the Court may issue an injunction restraining such person, partnership, or association from further
prosecution of its business .and may make such other order or decree as
may be proper. (P.L. 1909, ch. 404, sec. 25; Banking Laws, 1929, sec.
25, p. 72.)
SOUTH CAROLINA..
Private banks not prohibited; apparently subject to examination; operations
also sub.ject to other provisions of law.




It does not appear that the laws of this State prohibit private

-.*<</-

banks from transacting & banking bti&inbss{ .bit it does appear from certain
provisions of these laws that priyafce banks are _
subject to
examination by the State Bank Examiner, are expressly required to publish
reports of condition, are made subject to the general provisions covering
the taxation of hanks, and are expressly inhibited from using the words
"bank", "banking", "trust", or "trust company" in connection with their
business, or from making use of any advertising or transacting business in
any manner so as to create the belief that the business engaged in is
that of a trust company. These provisions are referred to below.
Banking institutions conducted by "persons" subject to examination by State
Examiner4
The Governor of the State of South Carolina is required to "appoint a competent person to examine, from time to time, as hereinafter
provided, into the affairs and the condition of all banks and banking
institutions conducted by corporations or persons in this State. H (Code
of 1922, sec. 3977; Banking Law Pamphlet, 1928, sec. 82, p. 43.) Apparently,
this provision makes private banks subject to examination by the State
examiner "as hereinafter provided"; but because some of these "hereinafter
provided" examination provisions can not be made to apply to private
bankers, it would seem that it was intended that such provisions should
apply to private banks wherever it is possible to make them applicable and
these applicable provisions are set out below.
Duty and -power of examiner; report of examination.
"It shall be the duty of such Bank Examiner, and he shall have
power to make a thorough examination into all the books, papers and affairs
of the aforesaid banks and banking institutions, and in making such' examinations the Examiner shall have authority to administer oaths and to summon
and examine any and all persons connected with the said banks and banking
institutions, and if any person in such examination before the Bank Examiner
shall testify falsely, he shall be indictable as for perjury. The Bank Examiner shall make a full and detailed report of his findings and file the
•same in the office of the State Treasurer, and in this report shall be set
forth all violations, if any, of the banking laws of the State, and also
such a full summary of the affairs of the bank as shall be necessary for
the protection of the rights of the stockholders, depositors and creditors!
of such bank. It shall also be the duty of said Bank Examiner to forthwith
bring to the attention of the said banks all such violations of the banking
laws of this State and that the same be remedied or discontinued. He shall
furnish all banks so examined by him or his assistants with a copy of
said report. (Code of 1922, sec. 3978; Banking Law Pamphlet, 1928, sec.
83, p. 4.)
Number of examinations required; fees.,
"The Bank Examiner shall make at least two examinations every
year of all the banks and banking institutions in this State * * *."
Eees for these examinations are to be charged according to the capital




r 100 • «
•"

X-081S-

6f the banks* No bank dan " e required to pay for more than two examinab
tions each year, unless additional examinations are necessary because of
the mismanagement or negligence of a "bank's officers in which cases the
actual expenses of such additional examinationsrousthe paid by the hank
examined. The State Treasurer must hold these fees for paying the expenses of the State Examiner and they are payable upon the order of the
State Bank Examiner. The State Treasurer must include in his annual
report to the Legislature an abstract of the reports made to him by the
State Bank Examiner, showing, the financial condition of the banks examined
by him, and also a schedule of the receipts and disbursements connected
witti the State Bank Examiner's office. (Code of 1922, sec, 3983, as a~
mended by Acts of 1923, p. 191; Banking Law Pamphlet, 1928, sec. 85, p. 44),
Examiner may take charge of unsound bank and apply for appointment of
receiver.
"If the State Bank Examiner shall find that any of the said
banks or banking institutions are insolvent, or that their business is
being so dishonestly and fraudulently conducted as to jeopardize the inter-*
ests of the depositors, creditors.Qr stockholders, he shall have- full power,
upon consultation with the State Treasurer, to take and retain possession
of all the assets and property of every description belonging to such bank
or banking institution: Provided, He shall have first applied for and
obtained an order to this effect from a Circuit Judge, either residing or
presiding at the time, in the Circuit in which such bank or banking institution is located, two days' notice of such application being first given
to the Board of Directors of said bank of tho application for said order.
And it shall be his duty, and he is hereby authorized and empowered, to
make proper application to the court for the appointment of himself or some
other person as receiver to wind up and settle the affairs of such bank or
banking institution." (Code of 1922, sec. 3985; Banking Law Pamphlot, 1928,
sec, 87, p. 46).
Reports of condition and business must be published; -.penalty for failure
-to publish.
"All institutions doing business in this State i» lending
money and receiving deposits, under Acts of incorporation granted by the
State, are hereby required, under penalty of a forfeiture of their charters,
to publish in a newspaper in the city, town or village where they, or any
branch thereof, may do business, when and as called for by the State Bank
Examiner, without previous notice, a correct report of the condition and
business of such institution, which report shall contain a statement, under
oath, by the President, or Cashier of such institution, of the amount of
the capital stock paid in, deposits, discounts, property and liabilities
of said institution, verified by three.of the directors thereof.
"Upon failure of any such institution to publish the report
required herein, the Attorney General, on notice thereof, shall at once
take the necessary steps to vacate the charter of said institution* This
section shall apply to all private banking institutions, whether chartered
or nati" (Code of .1922, sec, 2S88; Banking Law Pamphlet, 1928, sec. 60, p.
28.)




•X-C010»i toil •*•*

Taxation.
The laws expressly make private "banks subject to the provisions
covering the taxation of the shares of stock and real estate of hanks,
and contain detailed requirements with reference to the manner of imposing such taxation. (Code of 1922, sec. 342, as amended hy Laws of 1924,
p» 1220, sec. 365, sec. 400-403; sec. 404, as amended " y Laws of 1927,
b
p. 265., sec. 405-412, and Acts approved March 21, 1924, p. 116, Acts of
1924, and April 14, 1925, p. 294, Laws of 1925; Banking Law Pamphlet,
1928, sees. 92-108, pp. 49-55.) Taxation of private hanking institutions
is also provided for by Chapter 194, Acts of 1925, p. 294.
Use of words "Bank" or "Banking".
"It shall be unlawful for any person or persons in this State
to use the words 'Bank' or 'Banking' in connection with any business,
calling or pursuit, other than a legalized incorporated banking institution. Any person or persons violating the provisions of this Act shall
be subject to a fine of not less than one thousand ($1,000.00) dollars
and not more than ten thousand ($10,000.00) dollars and by imprisonment
not exceeding ten years, nor less than one year, in the discretion of the
court." (Criminal Code of 1922, sec. 235; Banking Law Pamphlet, 1928, sec,
145, p. 109).
Use of words "trust" or "trust company", or transaction of business as
trust company.
No person, association or firm "other than trust companies chartered under the laws of the State of So^^th Carolina prior to the passage
and approval of this Act, or other than a corporation authorized to do
business of a trust company and subject to the supervision of the State
Bank Examiner, shall make use of the words 'trust' or 'trust company'
as part of any artificial or corporate name or title1,' nor make use of
any advertising indicating that the business conducted is that of a trust
company," nor transact business in such way or manner as to lead the public
to believe or as in the opinion of the bank examiner might lead the public
to believe, that his or its business is that of a trust company." A penalty is prescribed for a violation of these provisions. (Acts of 1928,
,ch. 693, sec. 24, p. 1283; Banking Law Pamphlet, 1928, sec. 24, p. 126).
Bank examiner may examine books, etc.. in case of violation of above
provisions.
"The bank examiner shall have authority to examine the accounts,
books and papers of any person, association, firm or corporation whom he
has reason to suspect is violating the provisions of this (above) section
and to summon and examine under oath, which he is empowered to administer,
any.person whom he may have reason to believe has violated or is a participant in any violation of the provisions of this section." (Acts of 1928,
ch. 693, sec. 24, p. 1283; Banking Law Pamphlet, 1928, sec. 24, p. 126).




SOUTH tiAJCQTA.
Private tanking "business permitted, "but provisions of frank a c t made applicable.
I t appears from the following provisions that a p r i v a t e
franking "business i s not prbhihited, "but that where such "business is
engaged in i t i s subject to the sane general provisions as are made applicafrle to incorporated franks and t r u s t companies fry the frank a c t .
"For the purpose of t h i s chapter every corporation, association, firm or individual in t h i s s t a t e whose "business, in whole or in
p a r t , consists in the taking of deposits or "buying and s e l l i n g exchange
shall "be held to "be a frank, and as thus defined each individual stockholder or memfrer. of such corporation, association or firm, except as to.
national franks, s h a l l he subject to the provisions of t h i s chapter".
"This chapter" covers the organization and operation of franking i n s t i t u t i o n s . "Where reference i n t h i s . c h a p t e r is made to franks, t r u s t companies
or the "business of franks or t r u s t companies in any manner, the same shall
"be construed as applying to any such corporation, association, firm or
individual so engaged in "business as defined in t h i s section, * * *".
(South Dakota Revised Code of 1919, sec. 8948; Banking Laws, 1927, sec.
8948, p . 15).
"* * * no charter or authority to engage in the franking .
frusiness i n t h i s s t a t e s h a l l "be issued and-no individual, co-partnership
or corporation shall "be permitted to engage i n the franking frusiness
except on C e r t i f i c a t e issued fry the Superintendent of franks upon approval
of the depositors' guaranty fund commission." (South Dakota Revised Code
of 1919, sec. 8949; Banking Laws 1927, sec. 8949, p . 15). " I t s h a l l he
unlawful for any person to advertise, publish or otherwise represent that
he i s engaged in the franking "business, without f i r s t having obtained
authority from the superintendent of hanks as provided in t h i s chapter",
and a penalty is proscrifred for unauthorized franking. (South Dakota Revised Code of 1919, s e c . 9000; Banking Laws, 1927, sec. 9000, p . 33),
TENNESSEE.
Banking "business may now only "be transacted fry corporations.
The following provisions of the laws of t h i s State would seem .
to. r e s t r i c t the r i g h t to ofrtain the r e q u i s i t e c e r t i f i c a t e to. dp a /bjkiking
frusiness, a f t e r the passage of the so-called franking act of 1913, to a
"corporation, firm or individual" which or who has complied with "iher[-,
provisions of the law regulating the incorporation of franking corpora*
tions".
"Before any corporation, firm or individual s h a l l open or com»
mence the t r a n s a c t i o n of "business as a "bank in t h i s S t a t e , after the
passage of t h i s (1913) Act, i t shall f i r s t sufrmit i t s a f f a i r s to an
examination fry the Superintendent of Banks, who shall a s c e r t a i n whether
the provisions of the law regulating the incorporation of franking cotpor-




X-0818 •
'
* " 100 J>
«
ations have been complied with, and whether the full amount of the
capital stock with which it proposes to commence doing business has been
paid in. If he shall find these things to have been properly done, he
shall then issue a certificate to the said corporation, firm or individual banker, authorizing them to operate and carry on a business of
banking." (PublicActs of 1913, ch. 20, sec. 24; Banking Law Pamphlet,
with amendments to and including 1923, sec. 24, p. 22.)
"The provisions of this Act shall apply to all persons and
corporations carrying on a banking business in this State, except that
the provisions of this Act shall not apply to national banks". (Public
Acts of 1913, ch. 20, sec. 42; Banking Law Pamphlet, with amendments to
and including 1923, sec. 42, p. 27.)
"The term or word 'bank', or 'banks', or 'banker', as used in
this Act, wherever it may occur in any part thereof, shall signify, mean,
cover and include every trust company, loan company,• mortgage security
company, safe deposit company, receiving money on deposit, and every
individual, firm, corporation, association or company doing a banking,,
loan or discount business and receiving money on deposit and performing
functions of a bank". (Public Acts of 1913, ch. 20, sec. 44; Banking
Law Pamphlet,- with amendments to and including 1923, sec. 44, p. 28).
The bank act also contains numerous references to the words
"persons", "firms" and "individuals", and, in some few instances, the
term "private banker" is used; furthermore, the act, in certain sections
thereof (sec. 10, paragraphs 5 and 15, and sec. 15, paragraph 1), specifically distinguishes between "corporations" and "persons" or "firms"
engaged in the banking business in outlining the procedure to be followed
in complying with the requirements of the respective sections, indicating
that a private banking business is actually recognized in this State.
In view of the provisions above quoted, however, it would seem that it was
intended that this recognition should apply only to' private bankers who
were transacting a banking business-,prior to the passage of the 1913 bank
act, although no such exception is expressly made in the act itself.

TEXAS.
Private banking business permitted, but subject to certain provisions of
law.
"It is hereby declared to be the public policy of this State that
no additional private banking institution or business shall be organized
or established, after the taking effect of this Act, and it is hereby
declared that it shall be unlawful for any person, association or persons,
partnerships, or trustee or trustees acting under any common law declaration of trust, to hereafter organize or establish, begin or resume the
operation of any banking institution or business within this State", except as provided hereinafter. (Laws of 1923, ch. 185, sec. 1,




p. 422; Rev* Stats., 1925, art. 54l.) "It shall " e the duty of private
b
individuals or firnis engaging in the hanking "business to use after the
name under which the "business is conducted, the word in parenthesis
•Unincorporated'i and failure to do so shall subject the offender to
a penalty of one hundred dollars * * * n . (Acts of 1905, S.S., p. 11;
Rev. Stats., 1925, art. 541.)
Advertising.
It is unlawful for any private "banker "to use, advertise or put
forth any sign as a hank, trust company, bank and trust company or savings
hank, or to in any way solicit or receive "business as such, or to use as
their name or part of their name on any sign, advertising or letter head
or envelope the word hank, hanker-, hanking, hanking company, trust, trust
company, hank and trust company, savings hank, savings, or any other term
which may or might he, confused with the name of a corporation organized
under the general provisions of the hanking laws of this State." '(Acts of
1925, ch. 148, p, 356; Rev. Stats., 1925, art. 541-A.)
Names of persons only can he used in name.
It is unlawful for a private bank to adopt or use any artifi- •
cial name or business title or to use any other than the name of the person or persons of the private bank, in the management, conduct or operation
of such private bank. (Acts of 1925, ch. 148, p. 35S; Rev. Stats., 1925,
art. 541-B.)
Funds not to be employed in speculative ventures.
Ho private bank "engaged in the business of banking or operating
a bank of deposit in this State shall employ any part of the funds of the
depositors of such institution in any spectxlative venture or enterprise
owned, or promoted by said bank or any of the partners,, officers or.managers*
•thereof." (Acts of 1923, ch. 185, sec. 3, p. 423; Penal Code, J.925, art.
560.)
Affidavit of solvency required.
Not later than January 15th of each year, each private bank is
required to file with the county clerk of the county in which the principal
place of business of the bank is conducted, an affidavit stating that the
bank is solvent and has and owns property and assets in the State of Texas
the value of shich is in excess of any and all of the liabilities of such .
private bank. (Acts of 1923, ch. 185, sec. 4, p. 423; Penal Code, 1925, art.
561.)
r
Statement of ownership required; publication of.
Not later than January 20th of each year, each private bank is
required to file with the county clerk of the county in which its principal
place of business is located, a written sworn statement giving the names of
each person holding or owning any financial interest in the bank, and a
copy of such statement must be published "in some newspaper of general circulation in said county, if such newspaper be published within said county."
(Acts of 1923, ch. 185, sec. 5, p. 423; Penal Code, 1925, art. 562.)




-<^S~4'~

JUbbl<i<-«

*»-1fl& ,•

Restriction oh advertisement of responsibility.
No private •bank can advertise in any manner that it owns,
possesses or has a financial responsibility in excess of the real and
true financial responsibility of such bank. The laws define the term
"financial responsibility" to mean money or real or personal property
within the State; (Acts of 1923, ch. 185, sec. 8, p. 424; Penal Code,
1925, art. 563.)
Violation of preceding provisions; penalty.
A violation of any of the preceding provisions by any private
bank or any member thereof constitutes a misdemeanor "punishable by a
fine of not less than one hundred nor more than one thousand dollars, or
by imprisonment in jail for not less than thirty days nor more than
twelve months, or by both such fine and imprisonment. Each day said
business is carried on or attempted to be carried on shall be a separate
offense." (Acts of 1923, ch. 185, sec. 8, p. 424; Penal Code, 1925, art.
564.)
Receiving deposits while insolvent; penalty.
Any private banker, or any manager, cashier or other person,
owning or operating a private bank, who receives or assents to the reception of any deposit of money or other valuable thing into the bank, or if
such private bank, manager, cashier or othor person, creates or assents to
the creation of any debt, debts or indebtedness, in consideration or by
reason of which indebtedness, any money or valu able property is received
into the bank, after knowledge that such banker "is insolvent, or in
failing circumstances, he shall be confined in the penitentiary not less
than two nor more than ten years. " The failure of the private banker is
prima, facie evidence of knowledge that such banker was insolvent or in
failing circumstances when the money or property was received .'Acts of
1923, ch. 185, sec. 7, p. 424; Penal Code, 1925, art. 565.)
Exceptions from above provisions.
The above provisions do not apply to private banks which were
"actively engaged in the operation of any bank, trust company, bank and
trust company or savings bank" at the time this (1925) Act became effective;
nor do such provisions apply to "any bank which may have been in successful
operation in this State for twenty years and shall have suspended operations prior to the passage of this Act, but which shall resume operation
within twelve months after the passage of this Act. " The right to continue
or resume business "is hereby expressly recognized, confirmed and fixed. "
These provisions also do not apply to a private banker "who lias for a period
of one year next preceding the date that this Act becomes effective, and
who, as such, in the course of the liquidation of any bank or trust company
or bank and trust company within.this State, has acquired the assets, or
any part thereof, including the real estate used as its banking house or
place of business and has assumed the liabilities, or a part thereof of
such liquidated bank or trust company or bank and trust company. " (Acts of
1925, ch. 148, p. 356; Rev. Stats., 1925, art. 541-C; Penal Code, 1925, art.
566.)




-~^SS~^-

X-;001D" •

u 10G •

"Blue Sky Law^ not applicable to urinate banks.
The laws of this State also provide that the so-called "Blue ,
Sky Law" shall not apply to private "banks. (Rev. Stats., 1925, art. 599.)
UTAH.
Private "banking expressly prohibited.
The laws of Utah provide that "The establishing or maintenance
of private or partnership banks is hereby expressly prohibited; provided,
that all such banks now in operation shall retire from business or incorporate under the provisions of this chapter within a period of five
years from and after the approval of this chapter." (Act approved March
30, 1911; Compiled Laws of Utah, 1917, Title 19, ch. 6, as amended, sec.
"994; Banking Laws, 1927, sec. 994, p. 9.)
VERMONT.
Private banking business prohibited.
"A person, firm, association or corporation, except corporations
reporting to and under the supervision of the bank commissioner, shall
not advertise or put forth any sign as a bank, banking association or
trust company, or in any way solicit or receive deposits or'transact business as a bank, banking association or trust company, or use the words
'bank', 'banking association" or 'trust company'; but. this section shall
not prevent an individual, as such, from acting in a trust capacity. A
person, firm, association or corporation subject to the provisions of this
section, who violates a provision thereof, shall be fined not more than
five hundred dollars for each offense." (General Laws Relating, to Banks,
ch. 226, Part II, sec. 5419; Banking Laws, 1918, sec. 5419, p. Zl.)
VIRGINIA.
Banking business may only be transacted by corporations; exceptions.
"No person, co-partnership or corporation, except corporations duly
chartered and already conducting the business of banking or trust, under
authority of the law of this State or the United States, or which shall
hereafter be incorporated under the laws of this State, or authorized to
db business under the banking laws of the United States, shall engage in
the business of banking or trust in this State; and no foreign Corporation
shall do a banking or trust business in this State, except that nothing in
this chapter shall prevent any person or co-partnership or corporation from
lending money on real estate and personal security or collateral, or from
guaranteeing the payment of bonds, notes, bills and other obligations, or
fr^om purchasing or selling all stocks and bonds. But this section shall
not apply to or affect any private banker or firm of private bankers who
shall .have been engaged in business on the first day of January, Nineteen
Hundred' and Ten." (Virginia Ban!: Act, sec. 3, as amended; ch, 507, Acts
of 1928, p. 1308, as amended by ch. 278, Acts of 1930, p. 702.). The laws
also contain provisions prohibiting persons or corporations not lawfully




-J-JISZ,

-

—X-6842""

engaged in the "business of banking from Using advertising indicating that
the place of business or the business carried on is that of a hank or from
using the word "bank", "tanking", etc. in connection with the "business.
(Virginia Bank Act, sec. 4.; ch. 507, Acts of 1928, p. 1308; Banking Law
Pamphlet, 1929, sec. 4149 (4), p. 25.)
Penalty for violation of provisions.
The laws provide that any person or persons violating the provisions referred to above "either individually or as an interested party,
in any co-partnership or corporation, shall he guilty of a misdemeanor."
(Virginia Bank Act, sec. 4; ch. 507, Acts of 1928, p. 1308; Banking Law
Pamphlet, 1929, sec. 4149 (4), p. 25.)
State Corporation Commission may examine books, records, etc. when violation suspected.
The State Corporation Commission has authority to examine the
accounts, books and papers of any person or co-partnership whom it has
reason to suspect is doing a banking business, in order to ascertain whether
such person or co-partnership has violated or is violating, any provision
of the banking'act. The refusal to submit such accounts, books and papers
is prima facie evidence of a violation. (Virginia Bank Act, Sec. 4;
ch. 507, Acts of 1928, p. 1308; Banking Law Pamphlet, 1929, sec. 4149 (4),
p. 25.)
WASHDTG-TON.
Private banking business apparently prohibited.
The laws of this state provide for the incorporation of banks and
trust companies and mutual savings banks to engage in the busiress of banking as defined'below. (Laws of 1923, sec. 3, p. 302, Laws of 39^9, sec. 2,
p. 93, sec. 3, p. 95, sec. 1, p. 437; Hem. Coinp. Stats., 1927 Sapp. , sees.
3226 and 3229, as amended by Laws of 1929, sees. 2 and 3, pp. 93 and 95,
and sees. 3227 and 3228; Banking Laws, 1929, sees. 29-32, pp. 13-16; Laws
•of 1915, sees. 1-5, pp. 549-552; Hem. Comp. Stats., sec. 3313 - 3317; Banking Laws, 1929, sees. 145-149, pp. 62-65) The laws, however, are silent
with reference to the organization or establishment of private banks.
The laws further provide that "no person shall engage in banking
except in compliance with and subject to the provisions of this (bank) act,
except it be a national bank or except in so far as it may be authorized
so to.do by the laws of this state relating to mutual savings banks, * * •*".
(Laws of 1919, sec. 7, p. 730J Hem. Comp. Stats., sec. 3222; Banking Laws,,
1929, sec. 25, p. 12.) It would seem, therefore, that this provision and
the provisions digested immediately below,'coupled with the silence of the
laws aB far as the organization of private banks is concerned, restrict
the transaction of a banking business to incorporated banks, trust companies,
mutual savings banks and national banks.
Definition of terms.
"The term 'banking' shall include the soliciting, receiving or
accepting of money or its equivalent on deposit as a regular business."




— X\JU *•

"The term 'tank', where used in this act, unless a different
meaning appears from the context, means any corporation organized tinder
the laws of this state engaged in banking, other than a trust company,
or a mutual savings "bank."
"The term 'person' where used in this act, unless a different
meaning appears from the context, includes a person, firm, association,
partnership and corporation, and the plural thereof, whether resident,
non-resident. citizen or not." (Laws of 1917, sec. 14, p. 275; Rem, Comp,
Stats., sec. 3221; Banking Laws, 1929, sec. 24, p. 11.)
Use of word "hank", etc.. and certain other advertising; penalty for
unauthorized use.
The laws also contain the requirement that the name of every hank
shall contain the word "hank", hut provide that only a national hank, a
hank or trust company authorized by the laws of Washington, or a foreign
corporation, authorized by the bank act, shall use this word or the words
"banking", "banker" or "trust", or other advertising-indicating that a
banking business is being carried on. "Every person who, * * * violate
any provision of this section shall be guilty of a gross misdemeanor".
(Laws of 1925, Ex. Sees., sec. 1, p. 177; Hem. Comp. Stats., 1927 Supp.,
sec. 3225; Banking Laws, 1929, sec. 28, p. 13.)
WEST VIRGINIA.
Private banking business prohibited.
"No person, persons, corporation or corporations doing business in
this State, except a banking institution chartered and organized under the
provisions of this article and article one of this chapter, and except a
banking association chartered under acts of the congress of the United State?,
shall use in connection with such business, or as a designation or title,
the term "bank,*" "banker", "banking", "banking company", "banking associatior..'1
"savings bank", or "trust company"; or engage in the banking business as
defined in sections six and seven of this article, or hold himself, themselves
or itself out as engaged in any such business.
"Any person or corporation and/or officer or director of any
corporation violating any of the provisions of this section shall be deemed
guilty of a misdemeanor, and, on conviction thereof, shall be fined not more
than one thousand dollars; and at the discretion of the court any individual
so offending shall be imprisoned in the county jail for a period not exceeding
six months, or both! fined and imprisoned, within such limits." (Section 2,
Article 4, Chapter 31, Code of 1931; 1905, c. 45; 1907, c. 79; 19l3, c. 21;
1919, c. 60; Code 1923, c. 54,- section 78; 1925, c. 34; 1929, c. 23, Section
1)».
. ,
(
"No corporation chartered under the laws of this State, or of any
other state, territory or sovereignty, except banking associations chartered
under the laws of the United Statea of America,1 and banking institutions
chartered under the laws of this State, as defined in this article, and no
person, partnership or association of persons as a"trust, or other




X-6812 •

organisation, shall engage in the "business of banking in the State of West
Virginia, or shall receive or accept deposits of money, or "borrow money by
receiving and giving credits for deposits, or by issuing certificates of
deposit or certificates of indebtedness, or by making'and negotiating any
writing purporting to be a bond., contract, or other obligation, the performance of which requires the holder or other party to maize deposits of
money with the issuer, or by means of any other plan, .pretext, scheme,
shift or device.
"Nothing contained in this section•shall-affect the rights, privileges, objects or purposes delegated to other corporations by the general
corporation law or other laws of this State,
"Any corporation or individual.who violates any of the provisions
of this section shall be guilty of a misdemeanor, and, upon conviction shall
be fined not more than five thousand dollars, and, in addition to such
penalty, every corporation so offending shall forfeit its corporate franchise, and every individual so offending shall be subject to a further
penalty by confinement in jail for not more than one year." (Section 18,.
Article 4, Chapter 31, Code of 1931; 1903, c. 8; 1919, c. 80; 1921, c. 126;
Code 1923, c. 54C, Sections 12, 14; 1925, c. 33; 1929, c. 23, Section 10)."




—• liWJ1 •

A—UUlu'

wisjcoitsiN.
Banking business may only be transacted by corporation,
"It shall " e unlawful for any person, copartnership, associab
tion, or corporation to do a banking business without having been regularly organized and chartered as a national bank, a state bank, a mutual
savings bank, or a trust company bank." (Wisconsin Statutes* ch. 224,
sec* 224.03; Banking Laws, including amendments of 192?, seCi 224.03, p. 63.)
Definition of term "bank".
" The term •bank', as used in this chapter, shall be construed
to mean any incorporated banking institution which shall have been incorporated under the laws of this state ae they existed prior to the massage of this chapter, and to such banking institutions as shall hereafter
become incorporated under the provisions of this chapter. " (Wisconsin
Statutes, sec. 224.01; Banking Laws, including amendments of 1927, sec,
224.01. p . 63.)
Penalty for unlawful banking.
"Any person or persons violating any of the provisions of * * *
(the) section (first above quoted), either individually or as an interested
party in any copartnership, association, or corporation shall be guilty of
a misdemeanor and on conviction thereof shall be fined in a sum not less
than three hundred dollars nor more than one thousand dollars, or by imprisonment in the county, jail not less than sixty days nor more than one
year,;or by both such fine and imprisonment." (Wisconsin Statutes, sec,
224,0$j Banking Law*, including amendments of 1927, sec. 224.03, p. 63),
WYOMING.
Banking business way only be transacted by corporations.
In order to transact a banking business as defined below, the
la*a of this Slate provide for the incorporation of banks, savings banks,
loan and trust companies and trust company banks, (Laws of 1925, ch.
157, sees. 3, 55, 69 and 75; Banking Laws, with 1927 amendments, sec. 3, p.
11, sec. 55, p. 22, sec. 69, p. 26 and sec. 75, p. 28.) The law also provides that "No person, firm or corporation (except national banks) shall
carry on a banking business except in compliance with the provisions of
this (bank) act." (Laws of 1925, ch. 157, sec. 11; Banking Laws, with 1927
amendments, sec,-11, p. 13) -I*-Is-further provided that "It shall-'tea, 'unlawful for any person or persons, co-partnership or association to transact
the business of a savings bank, * * * unless such person, company or a s sociation has been duly incorporated under this act; * * * • " (Laws of
1925, ch. 157, sec. 68; Banking Laws, with 1927 amendments, sec. 68, p, 36.)
Scope of Bank Act.




"Every bank, banker or corporation in this State doing, a Ranking

-^•6*
•i 111 ••>

X—001D •
»

•business under the provisions of t h i s ("bank) Act, shall he known as a
State hank; and any and a l l reference herein made to t h i s Act to s t a t e
hanks shall apply to every individual, firm or corporation doing a
hanking "business under the provisions of t h i s Act. " (Act of Fetiruary
15, 1229, s e c . 1; Laws of 1929, oh. 54, sec. 1.)
Definition of hank and hanking "business.
"Any person, firm or corporation (except national hanks) having
a place of "business within t h i s State where c r e d i t s are opened hy.the
deposit or c o l l e c t i o n of money or currency or negotiahle paper subject to
he paid or remitted upon draft, r e c e i p t , check, or order, s h a l l he regarded
as a hank or hanker, and as doing a hanking "business under the provisions
of t h i s , Act. " (Laws of 1925, ch. 157, sec. 10; Banking Laws, with 1927
amendments, sec. 10, p . 13.)
R e s t r i c t i o n against use of c e r t a i n a d v e r t i s i n g .
"No person, persons, firm or corporation shall advertise, issue
or c i r c u l a t e any card or other papers, or exhihit any sign using e i t h e r
or any of the terms 'hank', 'hanker', 'hanking house', or ' t r u s t company',
u n t i l they have fully complied with the provisions of t h i s Act; provided,
t h a t the term ' t r u s t company' may ho used hy a person, firm or corporation
when the "business transacted i s in no sense a hanking business." (Laws of
1925, ch, 157, s e e . 11; Banking Laws, with 1927 amendments, sec. 11, p . 13.)
" I t shall he unlawful for any person or persons, copartnership or associat i o n * * * to assume the name of a savings hank or association, unless
such person, company or association has he en duly incorporated under t h i s
Act; * * *". (Laws of 1925, ch. 157, sec. 68; Banking Laws, with 1927
amendments, sec* 68, p . 26)
Penalty for unlawful hanking or advertising.
Any person, firm or corporation v i o l a t i n g any of the ahove
provisions shall he deemed g u i l t y of a misdemeanor, and upon conviction
shall he subject to c e r t a i n prescrlhed p e n a l t i e s . (Laws of 1925, ch. 157,
sees. 12 and 68; Banking Laws, with 1927 amendments, sees. 12 and 68, pp.
13 and 2 6 ) .







- 261 -

APPENDIX C
Digest of Federal and State Laws Relating to Consolidation,
Merger, etc., of Banks and/or Trust Companies

_A(i^35-6931

DIGEST OF FEDERAL AND STATE LAWS
RELATING TO CONSOLIDATION, MERGER, ETC.,
OF BANKS AND/OR TRUST COMPANIES.

The following is a digest of the laws of the United States
and of the several States, as of July 1 , 1931, having reference to
..
the consolidation, merger, etc., of banks and/or trust companies,
which was prepared in the office of the General Counsel to the Federal Reserve Board, with the assistance of Counsel to the Federal
Res.erve Banks, pursuant to a request of the Board's Committee on
Branch, Group and Chain 3anking.

Except for provisions covering the

conversion of one hank or trust company into another this digest includes every provision of the Federal and State laws under which any
hank or trust company, or the assets and liabilities thereof, may be
united with, or transferred to, any other bank or trust company,
such as the provisions governing consolidations, mergers, purchases
of assets, etc.




~

X -60311

NATIONAL B A M ACT.

Consolidation of two or more national banks.
The National Bank Act provides for the consolidation with the
approval of the Comptroller of the Currency of any two or more national
hanks located in the same county, city, town or village under the charter of one of the hanks. Such consolidation shall he on the terms and
conditions agreed upon " y a majority of the board of directors of each
b
hank which must he ratified by the shareholders of each bank owning twothirds of its capital stock at a meeting of the shareholders held after
publication of notice in the newspapers for a period of four weeks and
after sending notice to each shareholder Ly registered mail at least
ten days prior to the meeting. The act makes provision for the payment
to any dissenting shareholders of the appraised value of the stock held
by such shareholders and for the disposal of any such shares at public
auction.

(Act of November 7, 1918; 40 Stat., 1043; U. S. Code, Anno-

tated, Title IS, sec. 33.)
Legal effect - transfer of rights and assets by operation of law.
"All the rights, franchises, and interests of the said national
bank so consolidated in and to every species of property, personal and
mixed, and choses in action thereto belonging, shall be deemed to be
transferred to and vested in such national bank into which it is consolidated without any deed or other transfer, and the said consolidated national bank shall hold and enjoy the same and all rights of property,
franchises, and interests in the same manner and to the same extent as was
held and enjoyed by the national bank so consolidated therewith".




(Act of

ATUVUi

(National Bank Act - cont'd.)
November 7, 1918; 40 Stat., 1044; U. S. Code, Annotated, Title 12, sec.
34.)
Consolidation of State and national "banks.
The National Bank Act also makes provision for the consolidation of any State hank or any hank incorporated in the District of
Columbia, when not in contravention of the law of the State under which
such hank is incorporated, with a national hank and under the charter
of the National Bank. The procedure provided for effecting such consolidations is similar to the procedure provided for the consolidation
of two or more national hanks which is described above. A similar
procedure is also provided for the satisfaction of dissenting shareholders.
(Act of February 25, 1927; 44 Stat., 1225; U. S. Code, Annotated, Title
12, sec. 34a.)
Legal effect - transfer of assets and right3 by operation of law.
"All the rights, franchises, and interests of such State or District hank so consolidated with a national hanking association in and to
every species of property, real, personal, and mixed, and choses in action
thereto belonging, shall he deemed to he transferred to and vested in such
national hanking association into which it is consolidated without any
deed or other transfer, and the said consolidated national hanking association shall hold and enjoy tho same and all rights of property, franchises,
and interests, including the right of succession as trustee, executor, or
in any other fiduciary capacity in the same manner and to the same extent
as was held and enjoyed hy such State or District hank so consolidated with
such national hanking association".




(Act of February 25, 1927; 44 Stat.,

v nTn
A—UVua.
.-4-3—

1225; U. S. Code, Annotated, Title 12, sec. 34a.)
ALABAMA.

Consolidation, merger or transfer of assets of "banks and trust companies.
"Any tank or trust company doing a banking business may consolidate or merge with, or transfer its assets and liabilities to, another
bank or trust company, * * *.'• (Civil Code of Alabama, sec. 6403; Banking
Law Pamphlet, 1928, sec. 6403, page 41.)
Resolution of board of directors; consideration and approval of by stockholders and superintendent of banks; effect of approval.
In order to effect such consolidation, merger or transfer of
assets, the Board of directors of each bank or trust company affected
must pass a resolution stating that such consolidation, Marger or transfer is desirable and call a meeting of the shareholders of each institution by giving at least thirty days' written notice to each shareholder
of the date, place and purpose of the meeting. A copy of the resolution
must also be furnished to the Superintendent of Banks and he must investigate the advisability of such consolidation, merger or transfer.

On the

day of the meeting of the shareholders, a resolution may be prepared
setting forth the desirability and terms of the consolidation, merger, or
transfer and if a majority of the shareholders of each institution approve
the resolution and the superintendent of banks approves all of the proceedings, such resolution shall have the force, and effect of consolidating
or merging the institutions affected.

(Civil Code of Alabama, Bection

6404; Banking Law Pamphlet, 1928, sec. 6404, page 41.)
Submission of certificate of proceedings to Superintendent of Banks for
approval.
.




A certified copy of the minutes of the board of directors passing

-^6 6 .1=6931.
-4(Alabama - cont'd.)
#

the resolution for consolidation, merger or transfer of assets and a
certified copy of the minutes of the stockholders' meetings must he made
under corporate seal and acknowledged by the president and cashier of
each institution, and forwarded to the Superintendent of Banks for his
certificate of approval. "(Civil Code of Alabama, sec. 6405; Banking Law
Pamphlet, 1928, sec. 6405, p. 42.)
Certificate of approval by Superintendent of banks; filing of.
If the superintendent of banks approves the entire proceedings,
he must issue his written certificate of approval in duplicate, one to
be filed in his office and the other to bo forwarded to the probate judge
of the county for record.

(Civil Code of Alabama, sec. 6406; Banking Law

Pamphlet, 1928, sec. 6406, p. 42.)
Examination of institutions by superintendent of banks.
Before approving proceedings to consolidate, the' superintendent
of banks must make an examination of each institution to determine whether
the interests of the depositors, creditors and stockholders of each are
protected and that such consolidation or transfer is made for legitimate
purposes. His approval or disapproval in the premises must be on the basis
of such-examination and no "consolidation or transfer" can bo made without
his written consent.

(Civil Code of Alabama, section 6407; Banking Law

Pamphlet, 1928, section 6407, page 42.)
Appeal from adverse decision of superintendent of banks.
In case the superintendent refuses to give his consent, an appeal
may be taken "to the circuit court of the county where such institution is
located, said court considering the sane in equity."




(Civil Code of Alabama,

(Alabama- cont'd.)
JL&L.

•

section 6408; Banking Law Pamphlet, 1928, sec. 6408, page 42.)

APJZOKA.

No provisions applicable to consolidations, mergers, etc.
The laws of Arizona do not contain any provisions specifically
providing for the consolidation, merger, transfer of assets, etc., of
hanks or trust companies.
APKAKSAS.
Definition zl the term "frank".
The word "bank" as used in the laws of Arkansas applies to any incorporated bank, trust company or savings bank.

(Acts of 1923, Act 627, sec.

17; Crawford and Moses Digest,1927 Supplement, sec. 674; Banking Law Pamphlet
1929, p. 14.)
Consolidation of banks.
Any bank may purchase the assets of,

or consolidate

with, another bank by filing with the commissioner of banks, as an amendment
to its articles of agreement, two copies of a resolution to tho effect
desired, adopted upon two-thirds vote of the stockholders of the respective
banks affected, both such copies to be verified by the president and
cashier or secretary, one to be retained by the commissioner and the other,
upon his approval, to be filed for record with the clerk of the county in
which the bank is located. The purchase or consolidation becomes effective
only when such resolution is approved by the bank commissioner and so filed
with the county clerk.

It is further provided that upon the purchase of the

assets of another bank,or the consolidation of two or more banks, all or any
part of the assets may be accepted in lieu of cash at their actual value.




- 2&r(Arkansas - cont'd.)

X-693i
-r-6—

(Acts of ,1923, Act 627, sec. 4; Crawford and Moses Digest, 1927 Supplement, sec. 674; Banking Law Pamphlet, 1929, p. 10.)

CALIFORNIA,*

Definition of word "bank".
The term "bank" as used In the following provisions of the socalled California Bank Act includes commercial hanks, savings banks and
trust companies.

(Cal. Bank Act, sec. 1.)

Consolidation of hanks.
Any state hank may consolidate with one or more state hanks
"its capital stock, properties, trusts, claims, demands, contracts, agreements, obligations, debts, liabilities and assets of every kind and description, * * *,«

(Cal. Bank Act, see* 31a.)

Directors' agreement for consolidation; subject to approval of superintendent of banks.
The consolidation may be upon such terms and in such manner as
may be agreed upon by the board of directors of the banks involved. An
original copy of such agreement must be filed in the office of the superintendent of banks and it does not become valid until it is approved by
him.

(Cal. Bank Act, 1929, sec. 31a.)

Submission of consolidation agreement to stockholders.
No consolidation can take effect until the agreement has been
"ratified and confirmed" by.the stockholders of each of the constituent
banks, either in writing by two-thirds of the respective stockholders, or
by the vote of two-thirds of such stockholders at a special meeting called
after two weeks1 notice has been given to each stockholder specifying the
time, place and object of the meeting and after such notice has been




_A6?~

X-G03*

(California - cont'd.)
published for two successive weeks in a certain designated newspaper,
(Cal. Bank Act, 1929, sec. 31a.)
Agreement for consolidation filed wlbh superintendent offranksmust " e
b
accompanied with certain papers.
There must he attached to the agreement which is filed with
the superintendent of hanks, either a memorandum of the ratification and
confirmation of the agreement, signed and acknowledged hy two-thirds of
the stockholders of each hank, or a certificate of the secretary of the
bank, under corporate seal and acknowledged by him, certifying that the
agreement has been ratified and confirmed as provided above.

(Cal. Bank

Act, 1929, sec. 31a.)
Articles of incorporation and consolidation, contents of.
Articles of incorporation and consolidation must be prepared
which must set forth:




"First - The name of the new corporation;
Second - The purpose for which it is formed;
Third - The place where its principal business is
to be transacted;
Pourth - The term for which it is to exist, which shall
not exceed fifty years;
Fifth - The number of its directors (which shall not
be less than three) and the names and residences
of the persons appointed to act as such until
their successors are elected and qualified;.
Sixth - The amount of its capital stock and the number
of shares into which it is divided;
Seventh - The amount of stock actually subscribed, and by
whom;.
Eighth - The names of the constituent corporations."

(Callfornia - cont'd.)
The articles of incorporation and consolidation must be signed and COUntersigned by the president and secretary of each hank and sealed with the corporate seal; and the approval of the superintendent of hanks mast he attached thereto,

(Cal. Bank Act, 1929, sec. 31a.)

Filing of articles of incorporation and consolidation.
The articles of incorporation and consolidation mast then he
filed with the secretary of state, and a copy of such articles, certified
by the secretary of state* must.be filed in his office, in the office of
the county clerk of the county in which is located the principal place of
business of the new corporation and each of its constituents and in the^
office of the superintendent of banks. The secretary of state must issue
over the seal of the state a certificate that the articles have been filed
in his office.

(Cal. Bank Act» 1929, sec. 3la.)

Certificate of authorization to consolidated, bank; issuance and filing of.
Provision is made for the issuance of a certificate of authorization to the consolidated bank by the superintendent of banks; and the
superintendent must transmit to the secretary of state a duplicate of such
certificate which he must file in his office. The superintendent must also
file a duplicate of such certificate in his own office.

(Cal. Bank Act,

1929, sees. 31a and 128.)
Certificate of superintendent of banks showing; approval and consummation
of consolidation.
Whenever two or more banks "authorized and qualified to conduct
the business of acting as exocutor, administrator, guardian of estates,
assignee, receiver, depositary or trustee" are consolidated into a bank




X-€9S3^

(California • cont'd,)
»
rt
"likewise authorized and qualified1 ,the superintendent of hanks upon

request, must issue a written certificate under his official seal and
acknowledged hy him, that the consolidation agreement has been filed in
his office, that the consolidation has teen approved by him and that it
has been completed and consummated.

He must attach to the certificate

a true copy of the consolidation agreoniont which is on file in his office.
Such certificate is prima facie evidence of the regularity of the proceedings and the fact of such consolidation.

(Cal. Bank Act, 1929, sec.

31c.)
Recordation of certificate of superintendent; effect of.
"The recordation of such certificate in the office of the recorder of any county shall be, to all persons, in such county, constructive
notice that all of the rights, benefits, privileges, duties and obligations
of whatsoever kind or nature, held or possessed by or imposed upon the bank
* * * that has "Expired by such consolidation * * *, are retained by and imposed upon the successor bank."

(Cal. Bank Act, 1929, sec. 31c.)

Legal effect of consolidation.
When the superintendent of banks authorizes the consolidated corporation to commence business as provided by law "the new or consolidated
corporation shall be a body politic and corporate by the name stated in the
certificate, and for the term of fifty years, unless it is, in the articles
of incorporation and consolidation, otherwise stated and thereupon each constituent corporation named in the articles of incorporation and consolidation must be deemed and held to have become extinct in all courts and places*
and said new corporation must be deemed and held in all courts and places




X-69S1'

(California - cont'd.)
to have succeeded to all their several capital stocks, properties, trusts,
claims, demands, contracts, agreements, assets, choses and rights in
action of every kind and description, both at law and in equity, and to
he entitled to possess , enjoy, and enforce the same and every
thereof, as fully and completely as either and every of its constituents
might have done had no consolidation taken piaco.

Said consolidated or

new corporation must also, in all courts and places, ho deemed and held
to have "become subrogated to its several constituents and each thereof,
in respect to all their contracts and agreements with other parties, and
all their debts, obligations, and liabilities, of every kind and nature,
to any persons, corporations, or bodies politic, whomsoever, or whatsoever,
and said new corporation must sue and be sued in its own name in any
and every case in which any or either of its constituents might have sued
or might have been sued at law or in equity had no such consolidation
been made. Nothing in this section contained shall be construed to impair
the obligation of any contract to which any of such constituents were
parties at the date of such consolidation. All such contracts may be enforced by action or suit, as the case may be, against the consolidated
corporation, and satisfaction obtained out of the property which, at the
date of the consolidation, belonged to the constituent which was a party
to the contract in action or suit, as well as out of any other property
belonging to the consolidated corporation, and the stockholders of each
constituent,corporation so entering into such agreement shall continue
subject to all the liabilities, claims and demands existing against them
at or before such consolidation to the same extent as if the same had not




3E-6S33r
(California - cont'd.)

i»-3b^r—

been made. The right of said new corporation to increase or decrease its
capital stock, to change the number of its directors, to amend its articles
of incorporation, to change its principal place of "business, or its name,
or to effect any other organic change shall be governed by the general
corporation laws of this state and by the bank act, and the procedure to
effect any such change shall be that defined by the general corporation
laws and the bank act." (Cal* Bank Act, 1929, sec* 31a.)
Merger of banks.
Any two or more banks empowered by thtdr articles of incorporation and authorized by the so-called Bank Act "to do the business of a
commercial bank and savings bank and trust company, or any one or more or
all of them, are hereby authorized to merge one or more of such banks into
another of them," in accordance with the following requirements. (Cal.
Bank Act, sec. 31b.)
Agreement of directors to merge; contents of.
The board of directors of each bank involved, may by a majority
of the membership of each board at a meeting duly called and held, make
-or authorize to be made a duplicate written agroomont for the mergor of tho
banks. Tho agreement must specify the receiving bank and each bank to be
merged, "and it shall prescribe the terms and conditions of the merger
and the mode of carrying it into effect." The agreement may also provide
for any matters to effect and accomplish the merger, not inconsistent with
the bank act or other laws of California.

(Cal. Bank Act, 1939, sec. 31b.)

Submission of merger a/sreement to superintendent of basks; approval of
necessary.




The merger agreement and sworn copies of the proceedings of the

*-€9S£*

(California.,•*, cont'd.)
'boards of directors authorizing the malting of the agreement mast he submitted to the superintendent of banks in duplicate for his approval "and
shall not he valid until such approval is

obtained."

(Cal. Bank Act, sec.

31h.)
Merger agreement to he approved " y p.tockholders.
b
The merger does not take effect until the agreement has been
"ratified and confirmed" in writing hy ^wo-thirds of the stockholders of
each hank, or approved " y two-thirds of such stockholders at a regular or
b
special meeting. Hfhen so adopted, the agroemont "shall thereupon "become
"binding upon such banks."

(Cal. Bank Act, 1929, sec. 31b.)

riling of approved merger agreement.
One original duplicate of the adopted agreement with a copy of the
written approval of the superintendent of banks and a sworn copy of the proceedings of the meetings at which such agreement was finally approved, made
by the respective secretaries, must be filed with the superintendent of banks,
and the other original duplicate must be filed in the office of the clerk of
the county where the principal place of business of the receiving corporation
is located.

(Cal. Bank Act, 1929, sec. 31 b. )

When merger takes effect.
Upon filing the duplicates of the agreement as above described, the
agreement "shall take effect according to all of its terms and the merger
shall thereupon take place as provided in the agreement without further
or other act, transfer or substitution," and the merged corporations must
surrender their liconsos to do a banking business for cancellation to the
superintendent of hanks.




(Cal. Bank Act, 1929, sec. Sib.)

-A7J~-

36-6931

(Oalifornia - cont'd.)
Issuance of new stock for old; . l A j l H t stockholders. rights of.
dsoflfg
Provision is made for the issuance of new shares of stock to
stockholders in lieu of the suock held by them in the merging corporations and for the appraisal and payment of the value of the stock held
by any stockholder who votes against the merger or dissents thereto in
writing after the merger agreement has been adopted by the stockholders.
(Cal, Bank Act, 1929, sec. 31b.)
Certificate of superintendent of banks showing approval and consummation
of merger.
Whenever two or more banks "authorized and qualified to conduct
the business of acting as executor, administrator, guardian of estates,
assignee, receiver, depositary or trustee" are merged into a bank "likewise authorized and qualified",, the superintendent of banks upon request,
must issue a written certificate under his official seal and acknowledged
by him, that the merger agreement has been filed in his office, that the
merger has been approved by him and that it has been completed and consummated. He must attach to the certificate a true copy of the merger
agreement which is on file in M s office. Such certificate is prima facie
evidence of the regularity of the proceedings and the fact of such merger.
(Cal. Bank Act, 1929, sec, 31c.)
Bocordation of certificate of superintendent; effect of.
w

The recordation of such certificate in the office of the recorder

of any county shall be, to all persons, in Buch county, constructive notice
that all of the rights, benefits, privileges, duties and obligations of
whatsoever kind or nature, held or possessed by or imposed upon the bank * * *
that has expired * * * by such merger, aro rotained by and imposed upon tho




(California - cont'd.)
successor" "bank."

-,-14 —

(Cal. Bank Actj 1939 j soc. Sld<)

Legal effect of merger,
"Upon the merger of any corporation or corporations into another,
as provided in this section:
(a) "Its corporate existence shall he merged into that of such other
corporation, and all and singular its rights, privileges and franchisee,
and its right, title and interest in and to all property, real, personal
or mixed, and choses in action, and every right, privilege, interest or
asset, of conceivahle value or "benefit then existing or which would thereafter inure to it under an unmerged existence shall .he deemed fully and
finally, and without any right of reversion, Interruption, impairment or
limitation of title, right or privilege, transferred to and vested in tho
corporation into which it shall have "boon merged, without further act or
dood, and such last montionod corporation shall have, hold, possess,enjoy
and enforce the same in its own right, as fully as the same was possessed,
enjoyed and held " y the merged corporation from which it was, " y operation
b
b
of the provisions of this section, transferred.
(D)

"Its rights, obligations, properties, assets, investments, de-.

posits, demands, contracts, agreements, court and private trusts, as defined in the hank act, and other relations to any person, creditor, depositor,
trustee, principal or "beneficiary of any court or private trust, shall
remain unimpaired and without change or alteration in any respect, and the
corporation into which it shall have heon merged shall, hy

such merger,

ipso facto and " y operation of law, without further transfer, substitution,
b
act or, dood, and in all courts and placos DO doomed and hold to have, and
shall "become subrogated and shall succeed, to all such rights, obligations,




X-€9S1
- • ljj »—
•

(California - cont'd!)
properties, assets, investments, deposits, demands, contracts, agreements,
court and private trusts and other relations to any person, creditor,
depositor, trustee, principal or "beneficiary of any court or private trust,
obligations and liabilities, of every kind or nature, and shall execute
and perform all such court and private trusts in the same manner as though
it had itself originally assumed the relation or trust or incurred tho
obligation or liability; the corporation into which it shall have been
merged shall succeed to and be entitled to take and execute and receive
tho appointment to all executorships, trusteeships, guardianships and
othor fiduciary capacities in which the merged corporation may bo thon
or thereafter named in wills theretofore or thereafter probated, or in
any other instruments; and the liabilities and obligations of such merged
corporation to the depositors, beneficiaries, principals and other creditors existing for any cause whatever shall not be impaired by such merger;
nor shall any obligation or liability of any stockholder in any corporation which is a party to such merger be affected by any such merger, but
s\ich obligations and liabilities shall continue as fully and' to tho same
extent as existed before such merger.
(c) "Any action ponding or other judicial proceedings to which any
corporation that shall so be mergod is a party, shall not be doomed to
have abatod or to have discontinued by reason of tho mergor, but^ may bo
prosecuted to final judgment, order or other decree in the name of the
merged corporation, in the same manner as if the merger had not been made,
or such merging corporation may be suortituted as a party to such action




-;2 7 f -

36-6934-

(Californla - cont'd}

or proceeding, and any judgment, order or decree may be rendered for or
against It that might have been rendered for or against such merged corporation, If the merger had not occurred.11

(Cal. Bank Act, 1929, sec*

31b.)
Legal effect of consolidation or mergers on trusts held by the constituent banks,
"Whenever a national banking association authorized and qualified to conduct in this state the business of acting as executor, administrator, guardian of estates, assignee, receiver, depositary or
trustee under court and private trusts, has been heretofore or is created
by the conversion of a stute bank likewise authorized and qualified; or
whenever one or more staso becks or one or more national banking associations so authorized and qualified hes been heretofore or is hereafter
consolidated with or mei.jod into one or more other national banking associations or into one or n o u state banks, likewise authorized and qualified,
such state bank or national banking association into which such state bank
has been or is converted or Into or with which such bank or banks has been
or are merged or consolidated shall by suca conversion, merger or consolidation ipso facto and by operation of law, without further transfer, substitution,, act or deed and in all courts and places, be deonod and hold to
have, and shall bocomo subrogatod ard shall succeed to, all rights, obligations, properties, assets, invostnorts, deposits, demands, contracts, agrooments, court and private trusts, and other relations to any person, creditor,
dopositor, trustor, principal or beneficiary of any court or privato trust,
and obligations and liabilities of ovory kind or nature which such prode-




X-693i
•*—l#-»*

(Call f orni a • cont,' d;)
»
cessor "bank or "banks so converted or merged or consolidated into or with
such state "bank or national banking association shall have held or enjoyed
or been subject to, and shall execute and perform-all such court and private
trusts in the same manner as though it had itself originally assumed the
relation or trust or incurred the obligation or liability.

Such state bank

or national banking association shall succeed to and be entitled to take
and execute and receive the appointment to all executorships, trusteeships,
guardianships and other fiduciary capacities in which the bank or banks so
converted or merged into or consolidated with such state bank or national '
banking association may be then or thereafter named, in wills theretofore
or thereafter probated, or in any other instruments. When such conversion, consolidation or merger is completed, there may be executed by the
president and secretary or cashier of such state bank or national banking
association" a certificate cortifying that tho business formorly conducted
by the constituent corporation or corporations has boon acquired and is
being conducted by the resulting corporation.

(Cal. Bank Act, 1929, sec.

31d.)
Recordation of certificate of bank; effect of.
"The recordation of such certificate in the office of the re-,
corder of any county shall be, to all persons, in such county, constructive notice that all the rights, benefits, privileges, duties and obligations of whatsoever kind or nature held or possessed by or imposed upon
the bank so converted or consolidated or merged are retained by and imposed
upon the successor bank."

Such certificate is prima facie evidence of the

regularity of the proceedings and the fact of




SUC]$L

consolidation or merger.

(California - cont'd.)
CCal. Bank Act, 1929, sec. kid.)
Sale of business.
Any 'bank may sell the whole of its business or
of any of its departments or branches to any other bank.

the 'business
(Cal. Bank Act,

1929, sec. 31.)
Consent of stockholders necessary to effect sale.
The consent of two-thirds of the stockholders of each of the
banks involved is necessary to effect such a sale; and the consent may
be either in writing and acknowledged by such stockholders and attached
to the instrument of sale, or to a copy thereof, or by vote of such stockholders at a special meeting.

(Cal. Bank Act, 1929, sec. SI.)

Agreement for sale and purchase; contents cf.
The selling and purchasing banks must enter into an agreement of
sale and purchase which must contain all the terms and conditions connected
with the transaction.

The agreement must contain proper provision for the

payment of liabilities of the soiling bank and the assumption by the purchasing bank of all fiduciary and trust obligations of the selling bank,
and in these particulars, is subject to the approval of the superintendent
of banks and does not bocome valid until such approval is obtained. The
agroement may contain provisions for the transfer of all deposits to the
purchasing bank, subject to the right of every depositor of the selling bank
to withdraw his deposit in full on demand after such transfer, regardless
of tho terms under which it was deposited.

The agreement may also contain

provisions for the transfer of all court and private trusts to the purchasing banks, subject to the rights of trustees and beneficiaries after such




-2ff~

X-69S*

—i9~(California - cont'd.)
transfer to nominate another and succeeding trustee of the trusts so transferred. (Cal. Bank Act, 1929, sec. 21.)
Filing of agreement for purchase and sale.
The agreement or a duplicate original thereof must be filed in the
office of the superintendent of banks iranediately after its execution by the
banks involved and its approval by the superintendent. (Cal. Bank Act, 1929,
sec. 31.)
Publication of notice of agreement for purchase and sale.
Notice of the agreement must be published for four successive
weeks in a newspaper in each of the counties in which either of the banks
has its principal place of business. An affidavit showing such publication must be filed with the superintendent within ton days after the last
publication.

(Cal. Bank Act, 1929, sec. 31.)

Obligations and liabilities of selling bank not impaired by sale; liability
of stockholders of respective banks.
No obligation or liability of the selling bank or its stockholders
and no rights, obligations and relations of any parties, creditors, depositors, trustors and beneficiaries are impaired by any sale, but the
purchasing bank succeeds to all such relations, obligations, trusts and
liabilities and is liable to pay and discharge all debts and liabilities
and' to perform all trusts of the sollirg bank. The stockholders of the
respective corporations also continue subject to all the liabilities, claims
and demands existing against them as such at or before the sale. (Cal.
Bank Act, 1929, sec. 31.)
The affairs of the selling bank shall remain subject to the provisions of the so-called Bank Act. (Cal. Bank Act, 1929, sec. 31.)




--80-(California - continued,)
Actidns on account of transferred deposits, obligations, etc*; when sstopped to bring.
No action can be brought against the selling bank or any of its
stockholders on account of any deposit, obligations, trust or liabilities,
which have been transferred to the purchasing bank, after the expiration
of one year from the last day of the publication above referred to. (Cal.
Bank Act, 1929, sec. 31.)
Maintenance of capital and surplus by selling bank.
The selling bank must maintain for a period of one year aftor
the last day of the publication above described such an amount of capital
or capital and surplus as the superintendent of banks may deem necessary.
(Cal. Bank Act, 1929, sec. 31.)
Certificate of superintendent of banks showing approval and consummation
of sale of business.
Whenever there has been completed the sale of the business of
any bank "authorized and qualified to conduct the business of acting as
executor, administrator, guardian of estates, assignee, receiver, depositary or trustee, to another bank, likewise authorized and qualified", the
superintezxdent of banks upon request, must issue a written certificate
under his official seal and acknowledged by him, that the agreement of sale
and purchase has been filed in his office, that the sale and purchase has
been approved by him and that it has been".completed

and consummated.

Be must attach to the certificate a true copy of the sale and purchase agreement whioh is on file in his office. Such certificate is prima facie
evidence of the regularity of the proceedings and the fact of such sale




(California - cont'd.)
and purchase.

(Cal. Bank Act, 1929, sec. 31c.)

Recordation of certificate of superintendent, effect of.
"The recordation of such certificate in the office of the recorder of any county shall "be, to all persons, in such county, constructive notice that all of the rights, benefits, privileges, duties and
obligations of whatsoever kind or nature, held or possessed " y or imposed
b
upon tho hank so selling its business and assets * * * are retained by
and imposed upon the successor bank."

(Cal. Bank Act, 1929, sec. 31c.)

Legal effect on trusts held by selling bank.
"Upon the approval by the superintendent of banks of an agreement of sale and purchase and the transfer of the business of a trvst
department or of a bank having a trust department the purchasing bank
shall, ipso facto and by operation of law and without further transfer,
substitution, act or deed, and in all courts and places, be deemed and
held to have succeedod and shall become subrogatod and shall succeed to
all rights, obligations, properties, assets, investments, deposits, demands,
contracts, agreements, court and private trusts and other relatione to any
person, creditor, depositor, trustor, principal or beneficiax*y of any court
or private trust, obligations and liabilities of every nature, and shall
execute and perform all such court and private trusts in the samo manner
as though it had itself originally assumed the relation or trust or incurred the obligation or liability.". (Cal. Bank Act, 1929, sec. 31.)
COLOIiADO
Consolidation of banks and/or trust companies.




Any state bank or trust company, or any national bank, "may be

(Colorado • cont'd.)
»

3rGSi
f-0l

consolidated with any state bank or trust company, or with any national
banking association, under the charter of such state bank or trust
company, or under the charter of such national banking association, or
under a new charter issued to such consolidated state bank or trust
company or to such consolidated national banking association, upon
such terms and conditions as may be lawfully agreed upon; * * * " (Laws
of 1933,, ch. 54, sec. 1, p. 161.)
Consent of State Bank Commissioner or Comptroller of Currency necoeaary.
No state bank or trust company can consolidate with another
state bank or trust company "without the written consent of the State
Bank Commissioner; and no.state bank or trust company shall consolidate
with a national banking association, nor shall any national banking
association consolidate with any state bank or trust company, without
the written approval of the State Bank Commissioner and the Comptroller
of the Currency; and no national banking association shall consolidate
with any other national banxing association without the consent of the
Comptroller of the Currency."

(Laws of 1931, ch. 54, sec. 1, p. 161.)

Consolidations involving national banks to comply with laws of United
States and regulations of Federal Reserve Board.
The consolidation of a state bank or trust company with a
national bank must comply with the "Federal banking laws and the rules
and regulations of the Federal Reserve 3oard" and no consolidation of
any kind "shall be in contravention of'the laws of the United States or
of the laws of the State of Colorado."
p. 161.)




(Laws of 1931, ch. 54, sec. 1.

(Colorado - cont'd.)
—S3-*Legal effect of consolidation
"At any time when such consolidation becomes effective all the
property of the merging or consolidating banks, trust companies, or
associations, including all right, title, and interest in and to all
property of whatever kind of the institutions forming such consolidated
hank, trust company, or association, whether real, personal or mixed,
and things in action, and every right, privilege, interest, and asset
of any conceivable nature, or benefit then existing, belonging or pertaining to the banks, trust companies, or associations forming such
consolidated bank, trust company, or association, shall immediately,
by proper order of the court, act of law and without any conveyance,
transfer, and without any further act or deed, be vested in and become the property of such consolidated bank, trust company or association, which consolidated bank, trust company, or association shall
have, hold and enjoy the same in its own right as fully and to the
same extent as the same was possessed, held and enjoyed by the institutions,
or any of the institutions, forming such consolidated bank, trust company, or association."
"Such consolidated state bank or trust compjany, or such consolidated national bank or association, shall be deaned to be a con- .
solidation of the entity and of the identity of the institutions forming
such consolidated bank, trust company, or association, and all the rights,
obligations, and relations of the banks, trust companies*or associations
forming such consolidated bank, trust company or association, to or in
respect to any person, estate, creditor, depositor, trustee, or beneficiary
of any trust, and in or in respect to any executorship or trusteeship or




(Colorado - cont'd.)

other trust or fidiciary function, and in or with respect to any anointment or designation as executor, trustee or other fiduciary, shall remain unimpaired, and the consolidated bank, trust company, or association,
as of the time of taking effect of such change or consolidation, shall
succeed to all the rights, obligations, designations, appointments, relations and trusts, and the duties and liabilities connected therewith,
and shall execute and perform each and every trust or relation in the
same manner as if such consolidated bank, trust company, or association
had itself assumed the trust or relation, including the obligations and
liabilities connected therewith.

If any bank, trust company, or associa-

tion forming such consolidated institution, is acting, or is designated
as administrator, co-administrator, executor, co-oxecutor, trustee, or
co-trustee, of or in rospect to any estate or trust being administered,
or to be administered, under the laws of this state, such designation or
relation, as well as any other and similar designation or fiduciary relations, and all rights, privileges* duties and obligations connected
therewith, shall remain unimpaired and shall continue into and in said
consolidated bank, trust company, or association, from and as of the
time of the taking effect of such consolidation, irrespective of the date
when any such designation or relation may have been made, created, or
established, and irrespective of the date Of any instrument relating
thereto."
"All Acts and parts of Acts in conflict with this Act are
hereby repealed".




(Laws of 1931, sees. 2-4, ch. 54, pp. 1S2-164.)

-

X97-

cdtocTicuT.
Merger or consolidation.
"Any two or more state banks, trust companies or state bank
and trust companies * * *, located and doing business in the same town
may* with the approval of the banking commission, merge or consolidate
into a single corporation to engage in the business of a state bank or
trust company or both,;.

(General Statutes* 1930, sec. 3890.)

Agreement of directors to merge or consolidate.
The directors of the corporations proposing to merge or consolidate may enter into an agreement prescribing the terms and conditions
of the merger or consolidation and containing certain prescribed statements of fact with reference to the name and location of the consolidated
corporation, the amount of its capital stock, the number of its directors,
etc.

(General Statutes, 1930, sec. 3891, as amended by Public Acts of

1931, ch. 88.)
Submission of agreement to stockholders.
The agreement must be submitted to the stockholders of each of
the corporations involved at a special meeting called after twenty days'
notice.

Such notice must also be published in a designated newspaper or

newspapers for three successive weeks.

(General Statutes, 1930, sec.

3892, as amended by Public Acts of 1S31, ch. 88.)
Approval of consolidation by stockholders; submission to banking commission.




If the consolidation or merger is approved by two-thirds of the

X 60gi
(Connecticut - cont'd.)

stockholders of each of the corporations',, that fact must be certified
under corporate seal upon the agreement by the secretaries of the respective corporations, and such certified agreement must then he submitted
to the banking commission.

(General Statutes, 1930, sec. 3892, as

amended by Public Acts of 1931, ch. 88.)
Consideration and approval of agreement by banking commission; filing of
approved agreement.
If the banking commission, after a hearing held after publication for three successive weeks of notice of such hearing, determines
that the consolidation or merger "will promote public convenience" and
that the terms thereof are reasonable and in accordance with law and
sound public policy, it may approve such consolidation or merger. If
approval is granted, the banking commission must certify its findings
and approval on the agreement and file such agreement in the office
of the Secretary of State. When so approved and filed, the agreement
"shall evidence the terms and conditions of such consolidation and
the legal existence and the organization of said consolidated corporation, and the provisions of the charters or organization certificates
of the consolidating corporations in so far as they may be inconsistent
therewith shall be inapplicable to said consolidated corporation."
(General Statutes, 1930, sec. 3892, as amended by Public Acts of 1931,
ch. 88.)
Increase or reduce capital stock, change of name, or other amendments
to agreement; when may be made.




The consolidated corporation, subject to the approval of the

X 6951.
(Connecticut - cont'd.)
—embanking commission, may at any time in the future change its namo,
increase or reduce its capital stock, and make other amendments to
the agreement provided such change or amendment is approved at a
special meeting by two-thirds of the stockholders "and a certificate
setting forth such change or amendments and stating that the same
has been adopted by the stockholders shall he made hy a majority of
the directors, approved by the hanking commission and filed in the
office of the secretary of state."

(General Statutes, 1930, sec.

3392, as amended by Public Acts of 1931, ch. 88.)
NOIS: - The 1931 amendment referred to under the five preceding
headings is not yet obtainable; but, inasmuch as the bank commissioner of the State of Connecticut has advised that it is a
purely clarifying measure, the provisions as amended probably do
not differ substantially from the provisions as above digested.
Le^al effect of merger or consolidation.
"Upon the completion of such consolidation as hereinbefore prescribed, the consolidating corporation shall become a corporation by the name so provided and the corporate existence of the
consolidating corporations shall be continued by and in the consolidated corporation and the consolidated corporation shall possess all
the rights, provileges, powers




(Connecticut - cont'd.)

and franchises of each of the consolidating corporations and the entire
assets, "business, goodwill and franchises of each of the consolidating
corporations shall he vested in the consolidated corporation without any
deed or transfer, provided the consolidating corporations may execute
such deeds or instruments of conveyance as may bo convenient to confirm
the same, and tho consolidated corporation shall assume and be liable
for all debts, accounts, undertakings, contractual obligations and liabilities of every name and nature of the consolidating corporations and
shall exercise and be subject to all the duties, relations, obligations,
trusts and liabilities of each of the consolidating corporations, whether
as debtor, depositary, registrar, transfer agent, executor, administrator,
trustee or otherwise, and shall be liable to-pay and discharge all such
debts and liabilities to perform all such duties and to5 administer all
such trusts in the same manner and to the same extont'as if the consolidated, corporation had itself- incurred the obligation or liability or assumed
the duty, relation or trust, and all rights of creditors and all liens
upon the property of either of such consolidating corporations shall be
preserved

unimpaired and said consolidated corporation shall be entitled

to receive, accept, collect, hold and enjoy any and all gifts, bequests,
devises, conveyances, trusts and appointments in favor of or in the name of
either of said consolidating corporations whether made or created to take
effect prior to or after such consolidation, and the same shall inure to
and vest in said consolidated corporation; and no suit, action or other
proceeding pending at the time of such consolidation before any court or




(Connecticut - cont'd.)
tribunal in which either of said consolidating corporations is a party
shall he abated or discontinued because of -such consolidation but may
be continued and prosecuted to final effect by or against the consolidated corporation.

The consolidated corporation shall have the right

to use the name of ei'ther of the consolidating corporations whenever
it can do any act or discharge any duty or obligation or enforce any
right under such name more conveniently or with groator advantage to
itself or to any person to whom it holds any relation of trust or owes
any duty under any contract or conveyance, and no other corporation shall
take or use the name of either of said consolidating corporations. The
consolidated corporation shall possess all the powers granted by the
general statutes to banks and trust companies and shall be subject to all
provisions of the general s t a g ' s relating to such banlcs and trust companies."' (General Statutes, 1S30, sec. 3893.)
Exchango of stock of consolidating corporations; stockholders dissenting
to consolidation.
Provision is mads for the exchange of stock of the*consolidating
corporations for stock of the consolidated corporation, and for the appraisal and paymont of tho value of stock held 'oy stockholders who,objected
to the consolidation.

(Soneral Statutes, 1930, soc. 3894, as amended by

Public Acts of 1931, ch. 88.)
Restrictions on branches.




The statute further provides that nothing herein shall be construed

, x-coai.

(Connecticut - cont'd.)

as giving the consolidated corporation the right to maintain more than
one "banking house for the conduct of its business.

(General Statutes,

1930, sec. 3395.)
Consolidation or merger of savings "banks.
Any two or more savings "banks located within the same town may
merge or consolidate into a single savings "bank.

(General Statutes, 1930,

sec. 4007.)
Procedure to effect consolidation.
The procedure prescribed to effect the consolidation of two or
more savings banks is substantially similar to the procedure above described with reference to the consolidation of banks or trust companies,
except that in the case of savings banks an appeal from the decision of
the bank commissioner upon a protest against such consolidation is allowed
to. any judge of the Superior Court.

(General Statutes, 1930, sees. 4008-

4012; Banking Law Pamphlet, 1929, sees. 4008-4012, pp. 73 and 74.)
Legal effect of consolidation.
"Upon the completion of such consolidation, the several savings
banks shall become a single savings bank by the name provided in such
agreement, which may be a new name or the name of either of the consolidating banks; and said consolidated bark shall have all the powers and
authority contained in either of the charters of the banks so consolidating and may proceed to onact such by-laws, rules and regulations for its
management as were authorized at the organization of cither of said banks.




X-093P

(Connect icut - cont'd.)
"All liabilities of the respective consolidating banks for
current expenses shall he adjusted and paid by them before such
consolidation goes into effect; and certificates to that effect,
signed by the treasurer of each of said banks, shall be filed with
the consolidated bank.
"All the assets of each of said banks shall become the
property of the consolidated bank as soon as the certificate of
consolidation, approved by the bajik commissioner, shall have been
filed in the office of the secretary of the state, and thereupon
no further business shall be transacted by either of such consolidating banks, except such as may be necessary for the completion of such consolidation; and the consolidated bank shall
thereupon become liable for all the deposits and other obligations of each of said consolidating banks."

(General Statutes,

1930, sees. 4013-4015; Banking Law Pamphlet, 1929, sees. 40134015, pp. 74 and 75.)

DELAWARE.

Consolidation or merger of banks and trust companies; approval of
State Bank Commissioner necessary.
"It shall be unlawful for any bank or trust company
doing business in this State to merge or consolidate with any
other bank or trust company or to take over any substantial
portion of the assets of and/or to assume the liabilities, in




(Delaware - cont'd.)
whole or in part, of any other bank or trust company

(Whether

said other 'bank or trust company is then doing business or has
ceased to do business or has surrendered its charter or Has
dissolved) unless and until such action shall "ce approved by
the State Bank Commissioner, and the said Commissioner is
hereby authorized to require that he be furnished with such
information as to the said assets and liabilities and as to
the condition of the banks or trust companies concerned as
he shall deem necessary or proper to determine whether to
give or withhold his approval.
"It shall be. the duty of the State Bank Commissioner
to refuse his approval whenever in his opinion the transaction
will weaken or tend to weaken any bank or trust company concerned.
"Ho title to any property shall pass where the
transaction is in violation of tho provisions of this Section."
(Act approved April 25, 1931.)

DISTRICT 0? COLUMBIA.
No provisions relating to consolidations, mergers, etc.




The laws of the District of Columbia do not contain any pro-

—S3-*.

(district of Columbia - contftd.)

visions with specific reference to tho consolidation, merger, etc. of
tanks or trust companies.
FLORIDA.

Consolidation or transfer of assets.
Any tank which, is winding up its "business for the purpose of
consolidating with some other "bank, may transfer its resources and liabilities to the hank with which it is in process of. consolidating, hut
no consolidation shall he made without the consent of the comptroller of
the State of Florida, nor shall such consolidation operate to defeat ths
claim of any creditor or hinder any creditor from collection of his debt
against such banks or either of then.

(Act of June 7, 1913, sec. 12;

Banking Law; Pamphlet, 1930, p. 32.)

G30R&IA.

Definition of word "bank".
The word "bank" as used in the following provisions of the laws
of Georgia includes banks, savings tanks and trust companies.

(Banking

Law Pamphlet, with amendments to August 2u, 1925, Art. I, sec. 1, p. 1.)
Merger or consolidation of banks.
Any two or more banks are authorized to consolidate with or merge,
into another bank.

(Banking Law Pamphlet, with amendments to August 26,

1925, Article XIII, sec. 1, p. 49.)
Agreement to merge or consolidate; contents of.




In order to effect a merger or consolidation, the boards of

'(Georgia - cont'd.)
directors of the "banks involved may, Tinder their corporate names and seals,
enter into an agreement prescribing the terms and conditions of the merger
or consolidation and the mode of carrying it into effect. Such agreement
"shall he subject to the approval of the Superintendent of Banks", and it
must specify the name of the proposed resulting corporation, must namo tho
porsons who will constitute tho "board of directors after tho merger or
consolidation has taken place and until a new "board of directors "shall
" e elected by the stockholders, and shall provide for a meeting of the
b
stockholders of the merged or consolidated banks within thirty (30) days
after the merger or consolidation, to elect such board of directors, with
such temporary provisions for conducting the affairs of the merged or
consolidated banks meanwhile as shall bo agrcod upon."

(Banking Law

Pamphlet, with amendments to August 26, i925, Art. XIII, sec. 1, p. 50.)
Submission of agreement to stockholders; filing of certified copies of
proceedings approving; effect of.
After the agreement has been approved by the Superintendent of
Banks, it must be submitted to the stockholders of the banks involved at a
special meeting called after ten days' written notice specifying the time,
place and object of the meeting has been givon to oach stockholder.

If it

is approved by two-thirds of the stockholders of oach bank, "the samo shall
be tho agreemont of such banks". A certified copy of such proceedings,
signed under corporate seal by the chairman and secretary of each bank is
evidence of the holding and action of such meetings. Such certified copieB
must also be filed in the office of the Superintendent of Banks, "and there
upon such banks shall be merged or consolidated as specifiod in such agree-




(Georgia - cont'd.)

merit, and the "bank into which the other or others are merged, or the
consolidated hank, as the case may "be, shall thereafter have the new
name specified in such agreement, and the provisions of such agreement
shall he carried into effect as therein provided."

(Banking Law Pam-

phlet, with amendments to August 26, 1925, Art. XIII, sec. 2, pp. 50 and
51.)
Charter, application for, issuance and recording of.
When the acts described above have "been performed, the merged
or consolidated hank must file in the office of the Secretary of State a
formal application in duplicate accompanied by a foe of $25.00 in which it
must state:
"(l) The names and locations of the banks which have
been merged or consolidated, with the dates of
their original charters and all amendments thereto, respectively.
"(2) The date of the consolidation agreement, and the
dates of the approval thereof by the Superintendent of Banks and by tho stockholders of the several
contracting banks, rospoctivoly.
"(3) The name under which the consolidated bank proposes to do business.
"(4) The amount of capital stock of the consolidated
bank.
"(5) The number of its Board of Directors."
Immediately upon filing the application, the Secretary of State
must transmit one copy to the Superintendent of Banks, and when it has
been approved by the latter and a certificate of such approval has been
filed by him with the Secretary of State, the "Secretary of State shall
issue to tho consolidated bank a certificate under tho seal of tho State,




- *•

T

•

fc*693i

(Georgia - cont'd.)

certifying that the contracting tanks have been merged or consolidated
under the name adopted and with the capital stock, in. said application
set forth, which certificate shall he the charter of the consolidated or
merged hank; and the Secretary of State shall record the application,
tho certificate " y the Superintendent of Banks approving the samo, and
b
hi8 certificate, in the order named."

(Banking Law Pamphlet, with a-

mendments to August 26, 1925, Art. XIII, Bee. 2-a, pp. 51 and 52.)
Published notice of merger or.consolidation necessary.
Notice of the merger Or consolidation must he published for
a certain prescribed time and in a certain designated newspaper or newspapers. Such notice must give the name and location of the consolidated
or merged hank and must state that such hank tthas taken over the assets
of the hanks respectively, entering into,the consolidation or merger
agreement, and has assumed the liabilities of 3uch banks, including the
liability to depositors." • (Banking Law Pamphlet, with amendments to August
26, 1925, Art. XIII, sec. 3, p. £2.)
Issuance of new stock for old.
Provision is also made for the issuance of new certificates of
stock of the consolidated or merged bank in lieu of original certificates
of stock of the merging or consolidating banks.

(Banking Law Pamphlet,

with amendments to August 26, 1925, Art. XIII, sec. 4, p. 52.)
Legal effect of merger or consolidation.
"Upon the merger or consolidation of any banks in the manner
herein provided, all and singular, the rights, franchises, duties and




•—!—»
»3?(Georgia - cont'd.)

liabilities, and the interests of the "ban?: or banks so merged or consolidated, and all the assets of every kind and character, including the real
and personal property and choses in action thereunto belonging, shall he
deemed to he transferred to and vested in such hank into which tho other
or others have been merged or in the consolidated bank, without any deed,
transfer or assignment, and said bank shall hold, enjoy and be subject to
the same in the same manner and to the same extent as the merged or consolidated banks, respectively, had, held, owned, enjoyed, and was subject
to the same.
"The rights of 'creditors of any bank that shall be so merged
or consolidated shall not be impaired in any manner by any such merger or
consolidation; nor shall any liability or obligation for the payment of
any money due or to become due, or any claim or demand in any manner or
for any cause existing against such bank, or against any stockholder
thereof, be in any manner released or impaired; and all the rights, obligations and relations of all the parties, creditors, depositors, and
others shall remain unimpaired by such merger or consolidation. But such
bank into which the other or others shall be merged, or the consolidated
bank, as the case may be, shall succeed to all obligations, trusts, and
liabilities, and be held liable to pay and discharge all such debts and
liabilities and to perform all such trusts in the same manner as though
such bank into which the other or others shall have become merged, or the
consolidated bank had itself incurred the obligation

or liability; and the

stockholders of tho respective banks shall continue subject to all the




X-69S1*

(fteorgla - cont'd.)

liabilities, claims and demands, existing against them as such at or before such merger or consolidation; and no suit, action, or other proceedr
ing then pending "before any court or tribunal in which any bank that may
be merged or consolidated is a party shall be deemed to have abated or
been discontinued by reason of any such morgor, but the same may bo
prosecuted to final judgment in the same manner as if said bank had not
entered into said agreement, or the bank into which the others shall have
been merged, or the consolidated bank, as the case may be, may be substituted in the place of any bank so merged or consolidated by order of the
court in which such action, suit, or proceeding may pe pending.

Such bank

into which the other or others have been so merged, or the consolidated
bank, shall be subject to be sued in any court having jurisdiction, upon
any cause of action against any of the banks so merged or consolidated,
in the same manner as if such cause of action had originated against such
bank into which the other or others have been so merged or against such
consolidated bank."

(Banking Law Pamphlet, with amendments to August 26,

1925, Art. XIII, sees. 5 and 6, pp. 53 and 54.)

IDAHO.
Definition of word "bank".
The word "hank" as used in the banking laws of Idaho includes
commercial banks, savings banks, and trust companies.

(Idaho Banking Code,

1925, Art. 1, sec. 2, as amondod. Laws }f 1929, ch. 192, p. 353; Banking Law
Pamphlet, 1925, sec. 2, pp. 5 and 6, as amondod, Laws of 1929, ch. 192, p.
353.)
Consolidation or sale of business.




Any bank may sell its business "to any other ba.n>:, state or

36-6931,
— UIJ " —

(Idaho - cont'd.)

national, qr may., for the purpose of consolidating with another hank,
state or national hank, transfer its affairs, assets and liabilities to
the hank with which it intends to consolidate, * * *.n

(Idaho Banking

Code, 1925, Art. 1, sec. 48; Banking Law Pamphlet, 1925, sec. 48, p. 25.)
Consent of stockholders necessary; meeting; notice of.
Ho state bank, either as purchaser or seller, can enter into a
sale, purchase or consolidation unless such action is consented to " y twob
thirds of the stockholders, Such consent, if acknowledged, may he given
in writing by the stockholders, or by a vote at a special stockholders'
meeting, if ten days advance written notice of such mooting has been
givon to each stockholder stating its time, place and purpose.

(Idaho

Banking Code, 1925, Art. 1, soc. 48; Banking Law Pamphlet, 1925, soc.
48, p« 25.)
Consent of Commissioner of Finance necessary; examination of banks involved; filing of certain documents.
No sale, purchase or consolidation can be made without the consent
of the Commissioner of Finance, and before granting his consent he must
examine each of the banks involved. He must also, before granting his
consent, require each of the banks to filo certified copies of all proceedings of their directors and stockholders relating to the transaction, showing a full compliance with the provisions herein digested, and also copies
of any agreement or agreements which may have been entered into between the
banks.




(Idaho Banking Code, 1925, Art. 1, sec. 48; Banking Law Pamphlet,

1925, sec. 48, p. 25.)

-3oX~

X-€95i

—40-w.
(Idaho - c o n t ' d . )
Consent of Comptroller of Currency, when necessary.
The consent of the Comptroller of the Currency to a consolidation, liquidation, or purchase most be furnished to the Commissioner of
Finance if either hank concerned is a national hank.

(Idaho Banking

Code, 1925, Art. 1, sec. 48; Banking Law Pamphlet, 1925, sec. 48, p. 25.)
Rights of creditors not affected.
A sale or consolidation "shall in no wise impair, defeat or ,
defraud any creditors of said bank or either of them.*' (Idaho Banking
Code, 1925, Art. 1, sec. 48; Banking Law Pamphlet, 1925, sec. 48, p. 25.)

ILLINOIS.

Consolidation of "banks.
"Whenever the hoard of directors, managers or trustees of any
corporation having any hanking powers * * * * may desire * * * to
consolidate such corporation with any other corporation having hanking
powers * * * they may call a special meeting of the stockholders of such
corporation for the purpose of submitting to a vote of such stockholders
the question of such * * * consolidation with some other corporation
****."

(Laws of 1929, sec. 12, p. 184.)

Special meeting, notice of.
A special meeting of the stockholders may be called by delivering porsonally, or by mailing thirty, days before the timo fixed for the
meeting, a notice to each stockholder which must be signed by a majority of the directors, managers or trustees and state the time, place







•X-6931*

(Illinois ' . cont'd.)
and object of such meeting. Notice of such meeting must also " e published
b
in a designated newspaper.

(Laws of 1929,. sec. 12, p. 184.)

Stockholders * approval of consolidation; certificate of, to he filed ^ith
Auditor of Public Accounts.
At a special meeting, or at any regular meeting, if two-thirds
of the stockholders vote to approve the consolidation, a certificate of
such approval, verified under corporate seal " y the affidavit of the
b
president or a vice president, must he filed immediately in the office
of the Auditor of Public Accounts.

(Laws of 1929, sec. 12, pp. 184 and

185.)
Approval of Auditor of Public Accounts; filing of certain papers with
recorder of deeds.
If the auditor of Public Accounts giveB his written approval to
the consolidation such approval together with the certificate of the stockholders1 approval, must be immediately filed for record in the office of
the recorder of deeds of the county in which the principal business office
of such corporation is located, and the consolidation "shall bo and is
hereby declared accomplished in accordance with the said vote of the
stockholders."

(Laws of 1929, sec. 12, p. 185.)

Conditions precedent to approval by Auditor of Public Accounts.
Before the Auditor can approve the consolidation, "he shall require to be filed with him a complete record of the proceedii;^ of such
consolidation, a list of stockholders, the agreement or articles of consolidation approved by the stockholders, which shall include the amount of
capital and surplus of the consolidated corporation, the plan of business,
name and time for which such consolidated corporation shall continue,




- 3 &¥ -

X-69S3,
t

—48-(illinois - cont'd.)
which shall comply with, the requirements of this Act as to application
for and organization in the case of a now association, a detailed financial statement showing tho assets and liabilities of such proposed
consolidation and such othor records as ho may deem necossary, verifiod
by the affidavit of one or more of the officers of each consolidating
corporation, and shall satisfy himself that said records and list are
true and complete and that said financial statement is true and that
a sufficient amount is dedicated to the business of such proposed consolidation." The Auditor must also require each director of the
proposed corporation to take and subscribe a certain prescribed oath.
(Laws of 1929, Bee. 13, pp. 186 and 187.)
Examination by Auditor.
The auditor is given authority to make an examination into the
affairs of such corporation,

(Lavrs of 1929, sec. 13, p. 187.)

Publication of change of organization.
After the filing of the above described certificate in the recorder's office, the consolidated corporation must publish the change of
organization once each week, for three successive weeks, in a designated
newspaper. (Laws of 1929, sec. 12, p. 185.)
Pending suits or rights of persons not affected by consolidat-von,
The consolidation of one corporation with another does not affect
pending suits in which the consolidating banks are involved nor does it affect
causes of action or the rights of persons in any particular, (Laws of
1929, sec. 12, p. 185.)

(Illinois - cont'd.)

Dissenting stockholders, rights of.
Detailed provision is made for,the payment to any stockholder,
who objects to the consolidation within a certain prescribed time, of the
stock held by such stockholder.

(Laws of 1929, sec. 12, pp. 185 and 186.)

Sale of assets.
With the approval of the Auditor of Public Accounts, which shall
state that the proposed sale is in his opinion necessary for the protection of depositors and other creditors, any bank may by a vote of twothirds of its directors and without a vote of its stockholders, sell all
or any part of its assets to another corporation organized under the Laws
of Illinois or the United States, provided that such other corporation
assumes in writing all of the liabilities of the bank other than its liabilities to stockholders as such. Provision is also made for the payment
to any stockholders objecting to such sale of the value of the stock held
by such stockholders. (Laws of 1929, sec. 12, pp. 185-186.)
INDIANA..

Consolidation of State bank with national bank.
Any State bank "may be consolidated with any national banking
association or associations, under the charter of such national banking
association, or under a new charter issued to such consolidated association, upon such terms and conditions as may be lawfully agreed upon*.
(Act a--proved February 21, 1931, sec. 1.)




-2> o 6 -

(Indiana - cont'd.)
Legal Effect of Consolidation.
"Whenever any "bank shall have become, or shall have become
consolidated with, a corporation for carrying on the business of banking under the laws of the United States, it shall notify .the bank commissioner of this state of such fact, and shall file with him a copy
of its authorization as a national banking association or a copy of
the certificate of approval of consolidation, certified by the controller of the currency.

It shall thereupon cease to be a corporation

under the laws of this state, except that for the terra of three years
thereafter, its corporate existence shall be deemed to continue for
the purpose of prosecuting or defending suits by or against it, and
of enabling it to close its concerns, and to dispose of and convey its
property.

Such change from a state bank to or consolidation of a

state bank with a national banking association

shall not release any

such bank from its obligations to pay and discharge all the liabilities
created by law or incurred by it before becoming, or becoming consolidated with, a national banking association, or any tax inrposod by
the laws of this state up to the date of its becoming, or becoming
consolidated with, such national banking association in proportion to
the time which has elapsed since the next preceding payment anc* assessment therefor, or any assessment, penalty or forfeiture imposed or incurred under the laws of this state up to the date of its becoming,
or becoming consolidated with, a national banking association.







-X-6Pg]>

(Indiana - cont'd.)
"At such time when the consolidation of a state bank with a
national hanking association under the charter of the latter company
or such charter as may thereafter he issued, becomes .effective, all the
property of the state bank, including all its right, title and interest
in and to all property of whatsoever kind, whether real, personal or
mixed, and things in action, and every right, privilege, interest and
asset of any conceivable value or benefit then existing, belonging or
pertaining to it, or which would inure to it, shall immediately, by
act of law and without any conveyance or transfer, and without any
further act or deed, bo vested in and become the property of the
national banking association which shall have, hold and enjoy the same
in its own right as fully and to the same extent as the same was
possessed, held and enjoyed by the state bank; and the national banking association shall be deemed to be a continuation of the entity and
of the identity of the state bank, and all the rights, obligations and
relations of the state bank to or in respect to any person, estate,
creditor, depositor, trustee or beneficiary of any trust, and in, or in
respect to, any executorship or trusteeship or other trust or fiduciary
function, or appointment thereto, shall remain unimpaired, and the national
banking association as of the time of the taking effect of such change
or consolidation shall succeed to all such rights, obligations, relations, appointments and trusts, and'the duties and liabilities connected
therewith, and shall execute and perform each and every such trustor
relation in the same manner as if the national banking association had

(Indiana • cont' d.)
*
itself been appointed to and/ or assumed the trust or relation, including the obligations and liabilities connected therewith.

If the

state bank is acting as administrator, co-administrator, executor, coexecutor, trustee or co-trustee of ot in respect to any estate or trust
being administered under the laws of this state, such relation, as
well as any other or similar fiduciary relations, and all rights,
privileges, duties, and obligations connected therewith shall remain
unimpaired and shall continue into and in said national banking association from and as of the time of the taking effect of such consolidation,
irrespective of the date when any such relation may havo been created
or established and irrespective of the date of any trust agreement rolationg thereto or the date of the death of any testator or decedent
whose estate is being so administered.

Nothing done in connection with

the consolidation of a state bank with a national banking association
shall, in respect to any such executorship, trusteeship or similar
fiduciary relation* be deemed to be or to effect, under the laws of
this state, a renunciation or revocation of any letters of administration or letters testamentary pertaining to such relation, nor a removal or resignation from any such executorship or trusteeship or
other fiduciary relationship, nor shall the same be deemed to bo of
the same effect as if the executor or trustee or other fiduciary had
died or otherwise become incompetent tp act.
"All of the rights, powers, privileges, duties, obligations
and liabilities conferred on or extended to banking institutions which




> X=6S31-

-v-i?*(Indiana - cont'd.)
are formed by the consolidate on of a state bank with a national banking
association, as hereinbefore provided* are hereby conferred upon and
extended to state banks ' v i h arc formed by the consolidation of two
.hc
or more previously existing state banks'1.

(Act approved February 21,

1931, sec. 2.)
Meaning.of Terms.
The words "bank," "banks" or "state banks," as used in this
act shall be held to include banks of discount and deposit, loan and
trust and safe deposit companies, private b^nks, and savings banks,
or any other corporations or institutions carrying on the banking
business under authority of the laws of this state."

(Act approved

February 21, 1931, sec. 3.)

IOWA.
Consolidation or sale of assets of bank or trust company in receivership.
The laws of Iowa do not contain any provisions covering
tho consolidation, merger, etc., of solvent banks or trust companies.
With rcferehco to banks or trust companies in receivership, the
laws provide that:




"If a majority of tho creditors holdingdirect unsecured obligations of such bank in excess
of ten dollars each, and totaling in the aggregate
amount seventy-five per cent of all direct unsecured
obligations, shall agree in writing tc a plan of

- -48-"(Iowa - cont'd.)
disposition and distribution'of assets through
sale to another hank, reopening, reorganization or consolidation of the bank, the district court in which such
receivership is pending, upon application of the superintendent of banking, may order a disposition and distribution conforming in general to the provisions of such plan."
(Banking Laws, 1929, ch. 415, sec. 9239-al.)
Secured Creditors, certain rights, not affected.
"Nothing contained in the five preceding sections shall
affect the rights of secured creditors in the security pledged, or to
share in the capital stock assessment, nor affect the rights of depositors or creditors on bonds or other contracts with third parties."
NOTE: - Section 9239-al above quoted is one of the "five preceding
sections" referred to herein. (Banking Laws, 1929, ch. 415, sec.
9239-aS )
Applicability of above provisions to trust companies.
The laws of this State make the provisions above quoted applicable "with equal force and effect to all trust companies organized
or reorganized under this chapter".

(Banking Laws, 1929, ch. 416, sec.

9304.)

KANSAS.
Consolidation of bank and trust company.
The laws of this State provide that "Any bank or trust company
authorized to do business in the state of Kansas is hereby authorized and




S-S0S1.
--49-(Kansas - cont'd.)
"empowered to consolidate with any other bank or trust company authorized
to do business in the state."

(Session Laws of Kansas, 1931, p. 148.)

Terms of consolidation; consent of bank commissioner necessary.
Such consolidation must bo upon such terms as may lawfully
be agreed upon by the two banks or trust companies, and must have the
consent of the bank commissioner.

(Session Laws of Kansas, 1931, p.

148.)
Location, consolidation conditional upon.
The consolidating banks or trust companies must have their
banking houses in the same county in order to consolidate.

(Session

Laws of Kansas, 1931, p. 148.)
Legal effect of consolidation.
"In case of such consolidation, the consolidated bank and/'
or trust company shall become, without deed or transfer of any kind,
the owner of and entitled to all rights, franchises and interests,
which shall be referred to in such agreement, of every bank and/ or
trust company which shall be subject ' o the laws of the state of
t
Kansas and which shall so consolidate, including every species of
property and everything of value of every kind and description except real estate; and such consolidated corporation shall, without further appointment, act as trustee, executor, administrator
or in any other fiduciary capacity in which any such bank or trust
company subject to the laws of this state was acting at the time




( a t g , - cont'd.)
Kf.g8
"of su@h consolidation."

(Session Laws of Kansas, 1931, p. 148.)

"In case any bank or trust company shall be named as trustee
or in any other fiduciary capacity in any trust deed or other writing,
or shall be named as executor in any will, and shall afterwards consolidate with any other bank or trust company such consolidated company
shall be entitled to be appointed or to act as such trustee, fiduciary,
or.executor, with the same effect as if such consolidated corporation
had been specifically named in the trust deed, writing, or will creating such trust or fiduciary relationship."

(Session Laws of Kansas

1931, p. 151.)

KTOTUCKY.
Consolidation of two or more trust companies.
The laws of Kentucky do not appear to contain any provisions
covering the consolidation or merger of banks; and it has been held
that proceedings by the boards of directors of two banks were not
sufficient to effect a consolidation.
155 Ky. 669, 178

S. W. 1033.)

(La Rue v. Bank of Columbus,

With reference to trust companias,

however, the laws provide that "any two or more corporations
organized under the laws of this State, for the purpose of conducting the business of trust companies, may consolidate their
capital stock, assets and management into one organization."
of Kentucky, 1912, ch. 41,'•sec. 1; Carroll's Ky. Stats., 1930,




(Laws

-$13-

(Kentucky- cont'd.)

sec. 603a-l;

Banking Law Pamphlet, including 1926 legisla-

tion, sec. 503&-1, p. 32.)
Specific legal effect of such consolidation.
"The separate existence of each corporation shall continue and all duties, powers and discretions of the constituent
companies as personal representative, trustee, assignee,
guardian, agent, or otherwise conferred, shall he imposed
upon and may he exercised by the consolidated corporation;
and such duty, power or discretion, at the time of consolidation or thereafter imposed upon either of the constituent companies, may be performed




X-0031-

(Kentucky - c ont'd.)
or exercised " y the consolidated corporation in its own name or in the
b
name of the constituent company upon which was imposed or conferred
such duty, power or discretion; or " y the constituent company upon
b
which was imposed or conferred such duty, power or discretion; hut in
every case the consolidated corporation shall he liable for the proper
performance of such duty and the proper exercise of such power or discretion. "
The method and effect of such consolidation must he as provided
in the provisions "below digested,

(Sections 555, 555a, 556, 557 and 558

of chapter 32, Carroll's 1930 Kentucky Statutes), "except that as ahove
provided, the separate existence of the constituent corporations shall
not cease, and the consolidated corporation and the constituent corporav
t

tions shall continue to exist, the management of said consolidated
corporation and each of said constituent corporations heing in the directors and officers of the consolidated corporation."

(Carroll's Ky. Stats,,

1.930, sees. 603a-l, 603a-2; Banking Law Pamphlet, including 1926 legislation, sees. 603a-l, a-2, pp. 32 and 33.)
Agreement of directors to consolidate.
A majority of the directors of each corporation proposing to
consolidate, may enter into a signed agreement to consolidate. 'Laws of
Kentucky, 1902, ch. 58, sec. 2, p. 118; Carroll's Ky. Stats., 1930, sec ..555.)
Submission of agreement to stockholders for approval, notice of.




Notioe of intention to consolidate must be mailed to each stock-

.- T ^ (Kentucky - c o n t ' d . )
holder a t l e a s t twenty days p r i o r to entering into the agreement and must
"be published a t l e a s t two weeks in a designated newspaper.

The written

consent of two-thirds of the stockholders of each corporation " s h a l l be
necessary to the v a l i d i t y of such agreement."

(Laws of Kentucky, 1902,

ch. 58, sec. 2, p . 118; C a r r o l l ' s Ky. S t a t s . , 1930, sec. 555.)
Names and addresses of stockholders not necessary.
All charters or a r t i c l e s of incorporation "heretofore taken
out" by two or more s t a t e companies consolidating "are hereby declared to
be valid, regardless of whether the names and addresses of the stockholders in the consolidating companies be inserted in the a r t i c l e s of
consolidation or not; and that a l l a r t i c l e s of consolidation heretofore
taken out are hereby declared to be valid without having the names and
addresses of the stockholders inserted therein; and said c h a r t e r s shall be
as valid and legal as if each and every stockholder in the companies com~
posing the consolidated company was set out in such a r t i c l e s of consolidation."

(Laws of Kentucky, 1906, ch. 131, p . 458; C a r r o l l ' s Ky. S t a t s . ,

1930, sec. 555.)
Additional provisions r e l a t i n g to the legal effect of a consolidation.
Except as provided in the provisions above referred to s e t t i n g
out the specific legal effect of a consolidate on or t r u s t companies (Sect i o n s 603a-l and 603a-2 of C a r r o l l ' s Kentucky S t a t u t e s ) , a consolidation
of t r u s t companies also has a further effect under another section of the
Kentucky laws.

This section provides that "When the agreement i s signed,

acknowledged and recorded in the same manner as a r t i c l e s of incorporation
are required to be, the separate existence of the constitutent corporations




~3Ho ~

X-00E1'

(Kentucky - cont'd.)
shall cease, and the consolidated corporations shall become a single
corporation in accordance with the said agreement, and subject to all
the provisions of this chapter and other laws related to it, and shall
he vested with all the rights, privileges, franchises, exemptions,
property, "business, credits, assets and affects of the constituent
corporations without deed or transfer, and shall he hound for all their
contracts and liabilities; Provided, that no consolidated company formed
under this chapter or the laws of this state shall he required to pay any
organization tax on the amount of capital stock on which the organization
tax.has been paid by the constituent companies prior to the consolidation,
and when a foreign corporation consolidates with one or more corporations
in this state the organization tax as required by the laws of this state
shall be paid on the amount of capital stock of such foreign corporation
and the organization tax shall be paid on any increase of the capital
stock of the consolidated corporation over the aggregate capital stock
of the constituent corporations prior to consolidation,"

(Laws of Kentucky,

1916, ch. 46, p. 490; Carroll's Xy. Stats., 1930, sec. 555.)
Consolidated corporation subject to State Courts and general corporation laws*
The consolidated corporation becomes a corporation of Kentucky
for all purposes and is subject to the jurisdiction of its courts and all
its laws regulating corporations. (Carroll's Ky. Stats., 1950, sec. 555.)
Ponding Butts not affected by consolidation.
Any suit pending by or against any of the constituent corporations
may be prosecuted to judgment as if no consolidation had taken place,




-J/7'

-35-6931

{Kentucky - cont'd.)
"or the new corporation may toe substituted in its place."

(Laws of Kentucky,

1393, ch. 171,p. 612; Carroll's Ky. Stats., 1930, sec. 557.)
Dissenting stockholders, rights of.
Provision is made for the payment within a certain time of the
value of stock held hy any stockholder who objected in writing to the
consolidation and who demands such payment within twenty days after the
consolidation agreement has been recorded*.

(Laws of Kentucky, 1898. ch.

171, p. 612; Carroll's Ky. Stats., 1930, sec. 558.)
LOUISIANA..
Sale of assets.
The laws of Louisiana do not contain any provisions specifically
covering the consolidation or merger of banks and trust companies; but
the laws do permit any State banking association, savings bank or trust
company to sell its assets to any other bank after having obtained the
consent of two-thirds of the stockholders of both the selling and purchasing banks. The consent must be either in writing and acknowledged by
such stockholders and attached to the instrument of sale, or to a copy
thereof, or by their vote at special meetings. The agreement for such sale
shall contain provisions for the payment of liabilities of the selling bank
and it may contain prbvisions for the transfer of all deposits to the purchasing bank, subject, however, to the unconditional right of every depositor of the selling bank to withdraw his deposit in full on demand after
such transfer. (Act 193 of 1910, sec. 3; Banking Law Pamphlet, 1928, sec.
3, p< 50.)




-J/f-

X=5?3?

Consolidation of savings banks or salo or lease of franchisor
property, etc.
The laws of this state provide that savings banks "may exercise
the powers and shall be governed by the rules and bo subject to the
duties, liabilities, and provisions in their charters, *** and in the
general laws relating to corporations, unless otherwise specially provided".

(R. S., 1930, ch. 57, sec. 13.)
The "general laws relating to corporations" provide that "Ho

corporation shall sell, leaso, consolidate or in any manner part with
its franchises, or its entire property, or any of its property, corporate rights or privileges essential to the conduct of its corporate
business and purposes, otherwise than in the ordinary and usual course
of its business, except with the consent of its stockholders at an
annual or special meeting, the call for which shall give notice of
the proposed sale, lease or consolidation".

(E. S., 1930, ch. 56,

sec. 63, p. 877.)
Agreement to consolidate, contents of, acknowledgment.
Any two or more state corporations, or any state corporation
or corporations and any corporation or corporations of any other state,
"may consolidate into a single corporation which may be either one of
said corporations, provided the same be a corporation originally organized under the laws of this state, or a new corporation under the laws
of this state to be formed by means of such consolidation", by entering




-Jt9•»

*« *S — 1 .

(Maine - cont'd.)
into an agreement authorized by a majority of the directors of each
of the corporations involved and signed by the proper officers, "and
under the respective seals of said corporations, prescribing the terms
and conditions of the consolidation" and the mode of carrying it into
effect and whether the consolidated corporation will he one of the.
constituent corporations or a new one.

The agreement must also state

such other facts as are necessary to bo set out in tho certificate of
organization of an organizing corporation and as are pertinent in tho
caso of a consolidation, the manner of converting the capital stock
of the constituent corporations into stock of the consolidated corporation, together with such other details as are deemed necessary to
perfect the consolidation.

The agrsoment must "bo acknowledged by one

of the executing officors of each of the consolidating corporations"
before a person authorizod to take acknowledgements of doeds "to be
the respective act, dcod and agreement of each of said corporations".
CR. S., 1930, ch. 56, sec. 63, p. 877.)
Submission of agreement to stockholders; recordation and filing of;
when deemed to be act of consolidation.
The consolidation agreement must be submitted at a special
meeting to the stockholders Of each corporation involved, and if
adopted by a majority of such stockholders,, that fact must be
certified thereon by the clerk or secretary of each corporation,
"and the agreement so signed, acknowledged, adopted and certified,
after it has been examined by the Attorney General, and been by him




(kaine - cont'd.)

certified to bo properly drawn and signed and to be conformable to the
constitution and laws of this state, shall be recorded in the registry
of deeds in the county where the said consolidated corporation is
located, and within sixty days after the day of the meeting at which
such consolidation agreement is adopted by the stockholders, a copy
theroof certified by such register shall be filed in the office of
the Secretary of State, who shall enter the date of filing thereon,
and on the original agreement, certified as aforesaid, to be kept by
the consolidated corporation, and shall record said copy.

From the time

of filing the copy of such agreement in the office of the Secretary
of State, said agreement shall be taken and deemed to be the agreement
and act of consolidation of the said corporations and the said
original consolidation agreement or a certified copy thereof shall
be evidence of the existence of such consolidated corporation and of
the observance and performance of all acts and conditions necessary
to have been observed and performed precedent to such consolidation".
(R. S., 1930, ch. 55, 3ec S3, p. 877.)
Legal effect of consolidation.
When the agreement is signed, acknowledged, adopted, recorded
and filed, "the separate existence of all of the constituent corporations,
or all of such constituent corporations except the one into which such
constituent corporations shall have been consolidated, shall cease, and
the constituent corporations, whether consolidated into a new corporation




-°^

X-5933r

(Maine - cont'd.)
or merged into one of such constituent corporations, as the case may he,
shall hecome the consolidated corporation hy the name provided in said
agreement, possessing all the rights, privileges, powers, franchises
and immunities as well of a public as of a private nature, and being
subject to all the liabilities, restrictions and duties of each of
such corporations so consolidated and all and singular the rights,
privileges, powers, franchises and immunities of each of said corporations, and all property, real, personal and mixed, and all debts due
to any of said constituent corporations on whatever account, and all
other things in action of or "belonging to each of said corporations,
shall be vested in the consolidated corporations; and all property,
rights, privileges, powers, franchises and,immunities, and all and
every other interest shall be thereafter as effectually the property
of the consolidated corporation as they were of the several and
respective constituent corporations, and the title to any real estate,
whether by deed or otherwise, under the laws of this state, vested
in any of such constituent corporations shall not revert or be in any
way impaired by reason thereof; provided, that all rights of creditors
and all liens upon the property of any of said constituent corporations
shall be preserved unimpaired, limited to the property affected by such
liens at the time of the consolidation, and all debts, liabilities and
duties of the respective constituent corporations shall thenceforth
attach to said consolidated corporation and may he enforced against




(Maine - cont'd.)
i t to the same extent as if said debts, l i a b i l i t i e s and duties had
been incurred or contracted by i t " .

(R. S., 1930, ch. 56, sec. 63,

p . 877.)
Procedure where location of consolidated corporation is different
i

•
•

r

'

'

i

i

•

i

from that of constituent corporations.
"If the location of the consolidated corporation is not the
same as that of the constituent corporations, then the clerk of the
consolidated corporation shall within sixty days after such consolidation has become effective file a certificate of the consolidation,
setting forth the names and locations of the consolidated and constituent corporations, in the registry of doeds of each county, other
than that of the consolidated corporation-, where the constituent corporations may be located."

(R. S., 1930, ch. 56, Bee. 63 pp

877-879.)

Dissenting stockholders.
The laws also contain detailed provisions under which stockholders in any of the constituent corporations who dissent or object
to the consolidation, sale or lease, may obtain the value of the stock
hold by them.

(R. S., 1930, ch. 56, sees. 63-74, pp. 877-881.)

MARYLAND.

Consolidation of banks and trust companies; transfer of resources and
liabilities.
Any banking institution having capital stock incorporated
under the laws of Maryland may consolidate with any other banking




- 9*S~

*-6WB»

(Maryland - cont'd.)
institution of tho stats having capital stock* The consolidation mast
bo effected in tho samo manner*provided for tho consolidation of corporations under tho general laws of the state, and the rights of any
stockholder of any consolidating banking institution having capital
stock who dissents from the plan of consolidation at the stockholders'
meeting at which the said plan is submitted to the stockholders shall
be the same as the rights of a stockholder of an ordinary business
corporation.
Fo consolidation, however, can be made without the consent
of the Banking Commissioner, and not thon to defeat or defraud any of
the creditors of any of the consolidating institutions. The laws
also provide that a banking institution which is in good faith winding
up its business for tho purpose of consolidating with some other banking institution may transfer its resources and liabilities to the banking institution with which it is in process of consolidation.

(Annotated

Code of Maryland for 1924, Article 11, Section 59, as amended by laws
of Maryland for 1931, Chapter 294, Pago 761).
Provisions for the consolidation of corporations.
Since under the abovo statute the consolidation of banking
institutions is regulated by tho general law applicable to the consolidation of corporations, the substance of such provisions is set forth
below.
Any two or more corporations having capital stock existing or
formed under the laws of Maryland which have been or shall have been




-J*?-

S-6931

(Maryland - cont'd.)
duly authorized by law to carry on in whole or in part any business of
the same or a similar naturo may consolidate, and by such consolidation
form one new corporation. (Annotated Code of Maryland for 1924, Article
23, Section 33).
Proceedings for consolidation.
Such consolidations shall be made in the manner following;
There shall be an agreement of consolidation between the consolidating corporations giving: (a) the terms and csnditions of the
proposed consolidation; (b) the mode of carrying the samo into effect;
(c) the name of the new corporation; (d) the postoffice address of the
place at which the principal office of the corporation in this State
will be located as in the case of a certificate of incorporation and
the name or names and postoffice address or addresses of tho resident
agent or agents who will be in charge thereof, as in the case of a
certificate of incorporation; (e) the counties in this State in which
any of the consolidating corporations own property, the title td which
could be affected by the recording of on instrument among the land
records, and if any of the consolidating corporations own such property
in tho City of Baltimore, the agreement of consolidation shall so state;
(f) the number, names and addresses of the directors and the names
of the officers, who shall act as such until their successors are duly
chosen and qualified; (g) the amount of authorized capital stock of
each consolidating corporation and the total amount of authorized capital




(Maryland - coht1 d.)
stock of the new corporation and the number and par value of the shares;
(h)

the total amount of capitnl stock of the now corporation to bo

issued for stock of the consolidating corporations; (i) tho restrictions, if any, imposed upon the transfer of tho shares or of. any of
thomj (j)

if the capital stock is classified, the amount, par value,.

preferences, restrictions and qualifications of each class, specifying
the amount of each class authorized and the amount of each class to he
issued for stock of the consolidating corporations; (k)

the manner of

converting the capital stock of each of tho consolidating corporations
into stock of the new corporation; (1) all such other provisions and
details which shall be deemed necessary to perfect the consolidation.
The agreement of consolidation must be first submitted to
the boards of directors of the consolidating corporations, which must
pass resolutions declaring

that such consolidation is advisable and

calling separate meetings of the stockholders of the respective corporations to take action thereon,

notice of the meetings of stock-

holders must be given in the manner provided by law and if the agreement of consolidation 1B approved by the affirmative vote of two-thirds
of all shares (or if two or more classes of stock have been issued,
two-thirds of each class) outstanding and entitled to vote of each
consolidating corporation, the agreement must then be signed and
acknowledged'in tho name and in behalf of the respective consolidating
corporations by their respective president or vice-president and
sealed with their respective corporate seals, attested by their




-<$*-*> '

JW931

(Maryland - cont • d.)
t

respective secretaries or assistant secretaries.
The agreement thus executed must have attached to it the
affidavits of the chairmen or secretaries of the respective stockholders'
meetings, showing that the agreement was duly advised by the hoards
of directors and approved by the stockholders of their respective corporations.

(Annotated Code of Maryland for 1924, Article 23, Section

33 ).
Legal effect of the consolidation.
When such agreement has boon duly filed with the State Tax
Commission and the proper foes paid all of the property and assets
"belonging to said consolidating corporations of whatever nature and
description, and all the -owers and rights and all debts.and liabilities
of the said consolidating corporations of whatover nature and description shall bo devolved upon said now corporation, which shall be regarded as substituted by operation of law in the room and stead of
said consolidating corporations.

(Annotated Code of Maryland for

1924, Article 23, Section 34.)
Rights of dissenting stockholders.
Any stockholder of any corporation consolidating as aforesaid, who at such meeting voted against the agreement submitted, may
within twenty days after the agreement of consolidation has been delivered to the State Tax Commission, but not afterwards, make upon
the consolidated corporation a written demand for the payment of his stock




-3*7-

J6Bfi233,

(Maryland - cont'd.)
and shall thereupon be entitled to receive the fair value thereof.
If the stockholder and the corporation are unable to agree upon the
fair value of the stock, or if having agreed, the corporation shall
fail.to tender the amount thereof, the dissenting stockholder may
within thirty days after such written demand apply by petition to
any court of equity, which must appoint three commissioners to
determine the fair value of the stock without regard to depreciation
which has occurred since the consolidation, and the award of said
commissioners, or the majority of them, when confirmed by the court
is final and conclusive on all parties except that the corporation
and stockholder have the right of appeal to the court of appeals.
(Annotated Code of Maryland for 1924, Article 23, Section 35 ) .
Sale of all assets of a corporation.
Any corporation of the State of Maryland having capital stock
may at any meeting duly called in accordance with law sell, lease, or
exchange all of its property or assets as an entirety, including its
good will and franchises to and with any corporation organized under
the laws of Maryland, or of any other state which is duly authorized
to acquire and hold such or similar property. An agreement containing
the terms and conditions of such proposed sale, lease, or exchange must
after approval by the board of directors be submitted for the approval
of the stockholders of any corporation organized under the laws of
the state, which shall be a party to such agreement at a duly called




X"0931

(Maryland- cont'd.)

meeting, and if approved by the affirmative vote of two-thirds of all
stock (or if two or more classes of stock have been issued of twothirds of each class) outstanding and entitled to vote,, such agreement shall be executed and in terms and conditions performed by the
proper officers of the respective corporations.

If any stockholder

dissents at such meeting or votes against the agreement submitted
he may within twenty days after such meeting, but not afterwards,
require the payment to him by the corporation of the fair value of
his stock, which, if not agreed upon, must be determined in a manner
substantially similar to that provided in the case of consolidations.
(Annotated Code of Maryland for 1924, Article 23, Section 36).

MASSACHUSETTS.

Consolidation or merger of t r u s t companies.
The laws provide t h a t "No t r u s t company shall be merged
. in or consolidated with another t r u s t company except with the
w r i t t e n approval of the commissioner and under the provisions

of

sections forty-two and f o r t y - s i x of chapter one hundred and f i f t y s i x , which are hereby made applicable to the sale or exchange of
a l l the property and a s s e t s , including the good will and corporate
franchise, of a t r u s t company."

(General laws, ch. 172, sec. 44,

as amended by Acts of 1931, ch. 11.)




Section 42 of Chapter 156 above referred to provides t h a t

(Massachusetts - cont'd.)
"Every corporation may, at a meeting duly called for the purpose, by
vote of two-thirds of each claas of stock outstanding and entitled
to vote, or by a larger vote if the agreement of association or act
of incorporation so requires, change its corporate name,' the nature
of its business, the classes of its capital stock subsequently to be
issued and their preferences and voting oower, or make any other
lawful amendment or alteration in its agreement of association or
articles or organization, or in tKe corresponding "proviaions of its
act of incorporation, or authorize the sale, lease or exchange of
all its property and assets, including its good will, upon such
terms and conditions as it deems expedient."

(General Laws, ch.

155, sec. 42.)
Section 46 of Chapter 156 provides for the appraisal and
payment of the value of stock held by any stockholder who at the
stockholders' meeting referred to in section 42 voted against a
sale, lease, exchange of property and assets, or a change in the
nature of the business of the corporation.

(General Laws, ch. 156,

sec. 45.)
Legal effect of consolidation or merger.
"The charter of a trust company the business of which
shall, on or after July first, nineteen hundred and twenty-two, be
consolidated or merged with, or absorbed by, another bank or trust
company, or the affairs of which shall, on or after said date, have
been liquidated, shall be void except for the purpose of discharging




(Massachusetts - cont'd.)
*

existing obligations and liabilities."

(General Laws, ch. 172, sec.

44, as amendod by Acts of 1931, ch. 11.)
Office of consolidating or merging company may be maintained as branch
office.
"Any office of a trust company the business of which
has been token over under section forty-four by, or any office of
a national bank purchased by or merged in, a trust company located
in the same town, may be maintained as a branch office of such
corporation, if in the opinion of the commissioner public convenience will be served thereby,"

(General Laws, ch, 172, sec.

46, as amended by Acts 1922, ch. 396; Trust Company Pamphlet,
1929, sec. 45, p. 24.)
Consolidation or merger of savings banks'.
Any savings bank may, if authorized at a special meeting by two thirda of its corporators, be dissolved and liquidate
its affairs, "provided, that the (bank) commissioner is satisfied
that such savings bank has given at least thirty days' notice to
each other savings bank, located within twenty-five miles, of its
willingness to enter into negotiations with a view to consolidation or merger and that no consolidation or merger with any such
savings bank can be arranged upon terms satisfactory to the commissioner; * * *.

If, however, the commissioner is satisfied that

a consolidation or merger of the savings bank proposing liquidation




3*t

"

X-693T

- 69^(Massachusetts - c o n t ' d . )

with another savings bank located within twenty-five miles
can be effected on terms approved "by him. and if he finds
that such consolidation or merger i s in the i n t e r e s t bf the
depositors of the savings banks concerned, such consolidation
or merger may be effected upon such terms and subject to the
direction of the commissioner, provided that a vote authorizing the same i s passed by at l e a s t two-thirds of the corporators of each of the savings banks aforesaid a t meetings
s p e c i a l l y c a l l e d to consider the subject".

(Laws of 1930,

ch. 329, p . 377.)
MICHISAK.
Consolidation under so-called. "3ank Act" of bank or trust company with
State bank; procedure.
"A bank or trust company which is in good faith winding
up its business for the purpose of consolidating with some other
state bank may transfer its assets and liabilities to the bank
with which it is in orocess




(Michigan - cont'd.)

of consolidation."

Before such consolidation can "become effective each

hank or trust company concerned must file with the hanking commissioner,
with the secretary of state and in the office of the clerk of the county
in which the bank or trust company is located, certified copies of all
proceedings had by its directors and stockholders. The stockholders proceedings must state that stockholders owning at least two-thirds of the
stock voted in -the affirmative on the proposition of liquidation and consolidation and must also contain a copy of the agreement entered into
between the consolidating institutions. Upon filing such stockholders
proceedings, the banking commissioner must make an examination of each
bank or trust company, and his consent to or rejection of such liquidation
and consolidation shall be based thereon. Ho consolidation can be made
without the consent of the banking commissioner, and not then to defeat
or defraud any of the creditors of any of the consolidating institutions.
(Public Acts,' 1929, Act 66, sec. 57; Banking Law Pamphlet, 1929, sec. 66,
p. 40.)
State bank - consolidation with, or purchase of assets of national bank;
absorption of State bank by national bank.
A State bank is given authority to consolidate with or purchase
the assets and assume the liabilities of any national bank.

In case any

State bank is to be absorbed by a national bank, the banking commissioner
must require to be filed in his office, with the secretary of state and
in tho office of the clerk of the county in which tho bank is located,
certified copies of all proceedings had by the stockholders of each bank,




- ^

3

-X-6-931

(Michigan - cont*d.)
Wjtiich must state that stockholders owning at least two**thirds °f the
8«pital stock voted in favor of liquidation and consoU4ation.

Such

stockholders' proceedings shall also recite an exact copy of the agreement entered into between the banks. The hanking commissioner most also
require the national hank to furnish a certified copy of the consent of
the comptroller of the currency to such consolidation, liquidation or
purchase.

In the instance of a State bank absorbing a national bank,

the transaction shall not become effective until each bank files with the
banking commissioner certified copies of all proceedings had by its stockholders, which proceedings shall set forth that stockholders owning at
loast two-thirds of the capital stock voted in the affirmative on the
proposition of such consolidation or purchase. A copy of the agreement
entered into between the stockholders of each bank shall be set forth at
length in such stockholders' proceedings.

In addition, the national -bank

is required to furnish a certified copy of the consent of the comptroller of
the currency to such liquidation or consolidation under section 5220 of
the Revised Statutes of the United States.

It is also the duty of the bank-

ing commissioner to make an examination of each bank and no such consolidation shall be made without tho consent of the commissioner, and not then to
defeat or defraud any of the creditors of either of the banks parties to
the consolidation. The expenses of the examinations must be paid by the
banks but can not exceed ten dollars per day for each examiner and the
actual expenses incurred while making the examinations.

(Public Acts,

1929, Act 66, sec. 59; Banking Law Pamphlet, 1929, sec. 68, pp. 41 and 42.)




{Michigan - cont'd.)

Le^al effect of consolidation under so-called "Bank Act" of State bank
or trust company v/ith State "bank.
"In the event of any consolidation heretofore or hereafter
effected in any manner prescribed by this (bank) act, the consolidated
corporation, by whatever name it may assume or be known, shall be a continuation of the entity of each and all of the corporations so consolidated, and as such entity shall hold, exercise and perform all rights,
powers, privileges, duties and obligations appertaining to any and all
trust,.representative or fiduciary relationships of whatsoever nature
of each of the consolidating corporations at the time of such consideration, whether the appointment of such consolidating corporation in any
such trust, representative or fiduciary capacity shall have been by any
court or • otherwise and shall hold, exercise and perform all rights,
powers, privileges, duties and obligations appertaining to any and all
trust, representative or fiduciary relationships whatsoever as to or for
which either or any one of the corporations so consolidating may have
been appointed, nominated or designated by any will or conveyance or
otherwise, whether or not such will, conveyance or other act intended
to create such trust, representative or fiduciary relationship shall
have been executed or have come into or taken effect at the time of such
consolidation; and further, in the event of any such consolidation heretofore or hereafter effected, the consolidated corporation shall succeed to
and become the owner of all property, rights, powers, franchises, privileges and appointments, whether existing, contingent or future» corporeal,




— 3 3 S~~

!£=6931

(Michigsn * cont'd.)
*

or incorporeal, tangible, or intangible, of every nature whatsoever of
each of the consolidating corporations, and if any of the consolidating
corporations shall be acting or shall have "been nominated, appointed,
delegated or designated " y any court, person or otherwise irrevocably
b
or contingently to act as trustee, attorney, agent, executor, administrator, receiver, assignee, guardian, or in any fiduciary or respresentative capacity or relationship, or in any other capacity or relationship
whatsoever, the consolidated corporation shall succeed to all of the
property, rights, powers, privileges, duties and obligations appertaining
to each fiduciary, representative or other capacity or relationship,
without further or additional appointment, confirmation or designation
whatsoever, and said consolidated corporation shall file with each court
or other public tribunal, agency or officer by which any of the consolidating corporations shall have been so appointed and designated, and in"
the file of oach estate, suit or proceeding in which so then acting, a
statement setting forth the fact of such consolidation, the name of each
other corporation entering therein, the name of the consolidated corporation and its place of business, capital, and Burplus; but nothing herein
contained is intended or shall be construed to limit or restrict in any
wise the powers and authority of any court of competent jurisdiction in
respect of any matter arising by reason of any such condition."

(Public

Acts, 1929, Act 66, sec. 57; Banking Law Pamphlet, 1929, sec. 66, pp. 40
and 41.)




(Michigan - cont'd.)

Consolidation under so-called "Trust Company Act" of trust companies, or
of State or national bank with trust company authorized to engage in
banking business.
Any two or more trust companies, or a State or national bank
and "a corporation organized or existing under this (trust company) act,
and which has obtained the consent of the Commissioner of the banking
department to engage in the banking business, may consolidate in pursuance of authority granted by tho affirmative vote of the holders of at
least two-thirds of the capital stock of such corporation, in accordance
with either of the following methods:




(a) by the dissolution of each of the consolidating corporations and the conveyance of all of their assets and liabilities
to a new corporation which must assume all of the liabilities,
duties and obligations of each of the consolidating corporations.

The capital and surplus of the new corporation shall

be equivalent to the aggregate of the. capitals and surplus
of the consolidating corporations.
(b) by the acquisition by one corporation of all the assets
and liabilities of one or more other corporations, and the
dissolution of each of the other corporations.

The acquir-

ing corporation shall deliver to the dissolvent corporation
or corporations such cash, stock, or property as may be
provided in the agreement for consolidation, and shall assume
all of the liabilities, duties and obligations of each of the

-~$3 7 ~

«=S93i

(Michigan - cont'd.)




dissolving corporations* Each dissolving corporation shall
distribute pro rata to its stockholders any cash or property
or stock received by it.
No such consolidation is valid unless and until it is approved by the banking commissioner and not then to defeat
or defraud any creditors. Such consolidation does not become effective, until each of the consolidating corporations
files with the banking commissioner, with the secretary of
state, and in the office of the county clerk Of the county
in which the corporation is located, certified copies of all
proceedings had by its directors and stockholders, and the
stockholders' proceedings of each such corporation shall set
forth that two-thirds of the stockholders voted for the consol idatiohi

Such stockholders' proceedings shall also con-

tain a copy of the agreement for consolidation entered into
by the consolidating corporations.
If the consolidation is between a State or national bank
and a trust company, the directors* and stockholders' proceedings shall set forth the proportion of the capital of the
now or acquiring corporation which will be allocated to the
banking businoss of such corporation. Such allocation is
subject to the approval of the banking commissioner.
'Tor the purposes of this act the words 'consolidate',
'consolidation1, ''consolidating', and 'consolidated' shall
be construed to include in their meanings the meanings of




- 3 3 S7 -

X-69Z1.

(Michigan - cont'd.)
the words 'mcr&e', 'rnergGr','merging'- and 'merged', respectively. " (Public Acts, 1929, Act 67, sec. 30; Banking
Law Pamphlet, 1929, sec. 143, pp. 72 and 73.)
Legal effect of consolidation under so-called "Trust Company Act"
of trust companion, or of State or national bank with trust company
authorized to engage in banking business.
"In the event of any consolidation heretofore or hereafter
effected in any manner prescribed by this (trust company) act, the
consolidated corporation shall have, possess and bo the owner of all
property, rights, powers, franchises, privileges and appointments
whother existing, contingent or future, corporeal or incorporeal,
tangible or intangible, of every nature whatsoever of each of the
consolidating corporations, and if any of the consolidating corporations shall be acting or shall have been nominated, appointed,
delegated or designated by any court, person or otherwise irrevocably
or contingently to act as trustee, attorney, agent, executor, administrator, receiver, assignee, guardian, or in any fiduciary or
representative capacity or relationship, or in any other capacity
or relationship whatsoever, the consolidated corporation shall have,
•possess and be Tested with all of the property, rights, powers,
privileges, duties and obligations appertaining to each such
fiduciary, representative or other capacity or relationship, without further or additional appointment', obligation or designation
whatsoever.

In the event of any such consolidation heretofore or

(Michigan - cont'd.)

hereafter effected in any manner aforesaid, the consolidated corporation, by whatever name it may assuroo or • b known, shall be a con'e
tinuation of the entity of each and all of the corporations so consolidated, and as such entity shall hold, exercise and perform all
rights, powers, privileges, duties and obligations appertaining to
any and all trust, representative or fiduciary relationships of
whatsoever nature of each of the consolidating corporations at the
time of such consolidation, whether the appointment of such consolidating corporation in any such trust, representative or fiduciary capacity
shall have been by any court or otherwise and shall hold, exercise
and perform all rights, powers, privileges, duties and obligations
appertaining to any and all trust, representative or fiduciary relationships whatsoever as to or for which either or any one of the
corporati ons so consolidating may have been appointed, nominated
or designated by any will, or conveyance or otherwise, whether or
iiot such will, conveyance or other act intended to create such trust,
representative or fiduciary relationship shall have been executed
or have coma into or tukon effect at the time of such consolidation.
"Said consolidated corporation shall file with each
court or other public tribunal, agency or officer by which any
of the consolidating corporations shall have been so appointed
and designated, and in the file of bach estate, suit or proceeding in which so then acting, a statement setting forth the




(Michigan - cont'd.)

fact of such consolidation, tho name of oach other corporation
entering therein, tho name of the consolidated corporation and
its place of "business,, capital and surplus; but nothing herein
contained is intended or shall be construed to limit or restrict
in any wise tho powers and authority of any court of competent
jurisdiction in respect of any matter arising by reason of such
condition."

(Public Acts, 1929, Act 67, Sec. 30; Banking Law

Pamphlet, 1929, sec. 143, pp. 72 and 73.)

Purchase of assets by State bank or trust company of another bank or
trust company.
If any State bank or trust company purchases tho capital
stock of another bank or a trust company for tho purpose of retiring such stock and takes over all assets and assumes all
liabilities, the banking commissioner must require the stockholders of the bank or trust company selling

its business to

authorize such sale by a vote of tho stockholders owning at
least two-thirds of tho capital stock; and the commissioner




(Michigan - cont'd.)
may, in his discretion, require authorization of such purchase by the
acquiring hank or trust company " y a two-thirds vote of its directors
b
or stockholders, and may in his discretion make an examintion

of any

of the institutions involved before consenting to che transaction.
Certified copies of all stockholders and directors' proceedings must be
filed with the banking commissioner, the secretary of state and in the
office of tho clork of the county in which the institutions are located,
and shall contain in detail tho particulars relating to such salo ami
purchaso, and a copy of any agreement entorod into between tho stockholders and directors of the institutions. No salo or purchase shall
bo made without the consent of the commissioner and not then to defeat or
defraud any of the creditors of any of the institutions. The expenses
of any examinations must be paid by the institutions and shall not exceed ten dollars per day for each examiner and the actual expenses incurred while making the examinations?.

(Public Acts, 1929, Act 66, sec.

58, and Act 67, sec. 31; Bonking Law Pamphlet, 1929, sec, 67, p. 41 and
Soc, 144, p. 74.)
MI1REES0TA. '
Consolidation of banks and trust companies.
The laws of Minnesota authorizo the consolidation of State
banks or trust companies with other State banks or trust companies foporating in the some city or village" under such charter as the boards of
directors of the consolidating corporations may determine. All consolidations must be made in the manner prescribed below and when completed,
the consolidated corporation "shall be governed and conducted in all




(Minnesota - cont'd>)
other respects" by the statutes covering the operation of a corporation
of the same class as the corporation whose charter was adopted by the
consolidated corporation.

(Laws of 1925, ch. 156, sec. 1, Act approved

Apr. 8, 1925; Banking Law Pamphlet, 1929, sec. 1, p. 25,)
Agreement for consolidation, terms of; capital stock; name.
A consolidation agreement may he made by the hoards of directors of the institutions involved and this agreement must prescribe the
terms and conditions of and specify the parties to, the consolidation.;
The agreement must also prescribe the manner of carrying the consolidation
into effect, the name of the consolidated corporation, which may be the
name, in whole or in part, of any of the constituent corporations, and
the authorized capital stock of the resulting institution, which can not
exceed the aggregate authorized capital stock of all of the consolidating
corporations; and tho city or village in which tho principal place of
business will be carried on must be specified.

The persons who will

constitute the board of directors of the consolidated corporation mast
also be named, but the number and qualifications of such directors shall
be in accordance with the statutes relating to tho number and qualifications of directors of the class of corporation undor whose charter the
consolidation is made.

(Laws of 1925, ch. 156, sec. 2, Act approved

April 8, 1925; Banking Law Pamphlet, 1929, sec. 2, p. 25.)
Approval of superintendent of banks necessary.
The consolidation agreement and certified copies of the proceedings of the boards of directors authorizing the making of the agreement must be submitted to the superintendent of banks for his approval;
and the agreement does not become effective until he has approved it.




_jf^3

-

X-6931

* 01 •*
>
(Kinnesota - cont'd.)
After such documents are received, t'm superintendent within twenty days
must take action on them "and he shall he entitled to such further information from the consolidated corporation as he may request or as he
may ohtain upon a hearing directed hy him."

(Laws of 1925, ch. 156,

sec. 3, Act approved April 8, 1925; Banking Law Pamphlet, 1929, sec.
3, p. 25.)
The laws of Minnesota also provide that "With the written
consent of the examiner, (superintendent of hanks), it may effect a
transfer of its assets and liabilities to another hank for the purpose
of consolidating therewith, hut the same shall ho without prejudice
to the creditors of either." (General Statutes, 1923, soc. 7692; Banking Law Pamphlet, 1929, p. 25.)
Submission to and approval "by stockholders of agreement, certificate
hy superintondont of hanks.
Either "before or after the agreement has "been approved hy the
superintendent of hanks, it must he submitted to a special meeting of the
stockholders of each corporation involved and it does not become binding
upon the consolidated corporation until it has been approved "by a vote
or ballot of the stockholders, holding at least a majority of the amount
of stock of the respective corporations". Proof of the holding of such
meetings and such action as was ttu.-:en must be made to the superintendent.
After the agreement has been approved by the stockholders and the superintendent, "the latter shall issue a certificate reciting that such
corporations have complied with the provisions of this act and declaring
the consolidation of such corporations; the name of the consolidated




_ - yy -

X-6931'

(Minnesota - cont'd.)
corporation, the amount of capital stock thereof and the names of the
first board of directors and the place of business of such consolidated
corporation, which shall be within the city or village where any one of
said, constituent corporations shall have been previously authorized to
have its place of business". (Laws of 1925, ch. 156, sec. 4, Act approved
April 8, 1925; Banking Law Pamphlet, 1929, sec. 4. pp. 25 and 26.)
When incorporation complete and corporate existence begins.
When the superintendent of banks has issued the certificate
above described and it has been filed for record in the office of the
Secretary of State, and in the office of the Register of Deeds for the
county in which the consolidated corporation will have its principal
place of business, "such incorporation shall be deemed to be complete,
and such consolidated corporation shall from the date of such certificate
have such term of corporate existence as may be therein specified not
exceeding the longest unexpired term of any constituent corporation."
The certificate of the superintendent is prima facie evidence that all
the provisions of the so-called consolidation act have been complied with
and "shall be conclusive evidence of the existence of such consolidated
corporation*. (Laws of 1925, ch. 156, sec. 4, Act approved April 8,
1925; Banking Law Pamphlet, 1929, sec. 4, p. 26.)
Legal effect of consolidation.
"Upon the consolidation of any such corporation, with any one
or more corporations, into a consolidated corporation, as herein provided, the corporate existence of each former corporation shall be merged




— ^ ^ " -

-X-0931

(Minnesota • , cont »d.)
*

into that,of the consolidated corporation, and all and signular its
rights, privileges, and franchises, and its right, title and interest
in and to all property of whatsoever kind, whether real, personal, or
mixed, and all things in action, and every right, privilege interest or
asset of conceivable value or "benefit then existing which would inure
to it under an unmerged or unconsolidated existence shall be deemed
fully and finally transferred to and vested in the consolidated corporation without further act or deed and such last mentioned corporation
shall have and hold the same in its own right as fully as the same was
possessed and held by the former corporation from which it was, by operations of this act, transferred.

Its rights, obligations, and rela-

tions to any person, creditor, depositor, trustee, or beneficiary of
any frost, shall remain unimpaired and the' corporation into which it shall
have been consolidated shall succeed to such relations, obligations,
trusts, and liabilities and shall execute and perform all such trusts in
the same manner as though it had itself assumed the relation or trust,
or incurred the obligation or liability; and its liabilities and obligations to creditors existing for any cause whatsoever shall not be impaired by such consolidation, nor shall any obligation or liability
of any stockholder in any corporation, which is party to such consolidation, be affected by any such consolidation,

but such obligations and

liabilities shall continue as fully and. to the same extent as existed before such consolidation.

The consolidated corporation shall become without

further act or deed, the successor of the consolidating corporations in




- 3 //r& ~

X-693-1

(Minnesota- cont'd.)
any and all fiduciary capacities, in which each such consolidated corporations may be acting at the time of such consolidation, and shall
"be liable to all "beneficiaries as fully as if such consolidating corporations had continued its separate corporate existence. If any consolidating corporation shall "be nominated and appointed or shall have
been nominated or appointed as executor, guardian, administrator, agent
or trustee, or in any other trust relation or fiduciary capacities in
any will, trust agreement, trust conveyance or any other conveyance,
order or judgment of any Court, or any other instrument whatsoever prior
to such consolidation (even though such will or other instrument shall
not become operative or effective until after such consolidation shall
have becomo effective) every such office,.trust relationship, fiduciary
capacity, and all of tho rights, powers, privileges, duties, discretions
and responsibilities so provided to dovolve upon, vest in, or inure to
tho corporation so nominated or appointed, shall fully and in overy
respoct dovolve upon, vest in, and inure to, and be exercised by the
consolidated corporation, whether there be one or more successive mergers
or consolidations." (Laws of 1925, ch. 156, sec. 5, Act approved April
8, 1925; Banking Law Pamphlet, 1929, sec. 5, pp. 26 and 27.)
Consolidation does not affect pending judicial proceedings against
consolidating corporations.
Any judicial proceeding in which any consolidating corporation
is a party is not abated or discontinued because of the consolidation, but
it may bo prosecuted to final disposition, or the consolidated corporation




-3^7~

X=693*

(Minnesota - cont 'd.)
may "be substituted as a party and judgment rendered for or against it.
(Laws of 1925, ch. 156j sec. 6, Act approved April 8, 1925; 3anldng Law
Pamphlet, 1929, sec. 6, p. 27.)
Rights of stocteholders- objecting tc cohtiolidation.
The so-called consolidation act also contains detailed provisions with reference to the rights of stockholders of any of the
consolidating corporations in case they object to the consolidation.
(Laws of 1925, ch. 156, sec. 7, Act approved April 8, 1925; Banking Law
Pamphlet, 1929, sec. 7* p. 27.)
MISSISSIPPI.
go provisions covering consolidations, mergers, etc.
The laws of Mississippi do not contain dny provisions specifically covering the consolidation, merger, etc* of state.banks or trust
companies*
MISSOURI.
Banks, Sale of business to, or consolidation or merger with, another
bank or trust ompany.
"Any bpnk may sell the .whole of .its business, or tho whole
of the business of any of its departments, to any other bank or trust
company, state or national, or may for the purpose of c .nsolidating
or merging with another bank or trust company, state or national,
transfer its affairs, assets and liabilities to the bank or trust
company with which it intends to consolidate or merge; * * *."
of 1927, sec. 11. p. 232; Rev. Stata. of Mo. 1929, sec. 5379.)




(laws

(Missouri - cont'd.)

Consent of stockholders, when necessary.
Unless such sale, merger or consolidation is deemed by the
commissioner of finance to be a public necessity or advantage, it
can be ontored into only after obtaining the consent of two-thirds
of the stockholders.

This consent nay either be in writing, executed

and acknowledged by such stockholders, or by a special meeting of the
stockholders, prior notice of which, stating the time, place and object,
must be given to each stockholder of record.

(laws of 1927, sec* 11,

p. 232; 3ev. Stats, of Mo., 1929, sec. 5379.)
Consent of Commissioner of Financo finally necessary.
" T such salo, purchase, merger ox* consolidation shall be
!o
made without the consent of the commissioner of finance", and ho must,
"before granting his consent, require each of the banks or trust
companies to file certified copies of all proceedings of their
directors' and stockholders' meetings relating to the transaction,
showing a full compliance with the requirements of this section,
and also copies of any agreement or agreements which may have been
entered into betwoen said banks or trust companies."

(Laws of 1927,

sec* 11, p. 232; Hev. Stats, of Mo., 1929, sec. 5379.)

Commissioner of finance may examine institutions involved.
The commissioner of finance, before granting his consent
to such sale, purchase, merger or consolidation, may examine
each of the banks or trust companies involved, the expenses of




-3W-

j^a.

ta—gijr-i

(Missouri - c o n t ' d . )
which mast bo paid by such banks or t r u s t companies.
1927, sec. 1 1 , p . 232;

Rev. Stats*

of Mo.

(Laws of

1929, sec. 5379.)

Bights of c r e d i t o r s not affected.
I t i s further provided that ''such saloj inorgorj or
consolidation s h a l l in no wise impair, defeat ot defraud any
c r e d i t o r of said bank ot t r u s t company or e i t h e r of them".
(Laws of 1927, sec. 11, p . 232; Rev. S t a t s , of Mo. 1929, sec.
5379.)
Trust companios - morger or consolidation with oach other.
The laws of Missouri also provide that any t r u s t company
organized under such laws may bo merged in or consolidated with
any other such t r u s t company or companies to form a single corporation.
sec. 5470.)




(Laws of 1919, p . 150; Rev. S t a t s , of aio., 1929,

X-09S1
^

ftO-,

(Missouri - cont'd.)

Agreement to merge or conaolida't3; authorization for; execution and
acknowledgement.
Each trust company which le a party to a merger or consolidation, upon being first authorized by a majority of all the members of
its hoard of directors, must enter into an agreement with the other trust
companies which are parties to tho merger or consolidation, providing for
such merger or consolidation.

The agreement must " e in writing, and exeb

cuted and acknowledged under the seals of the trust companies involved
in such form as is required by law for the execution and acknowledgement
of instruments conveying real estate.

(Laws of 1919, p. 160; Rev. Stats.

of Mo., 1929, aec. 5471.)
Merger agreement; terms, conditions and contents of.
The merger agreement must set out:
(1) The names of the merging trust companies;
(2) The terms and conditions of such merger, and the manner of
carrying it into effect;
(3) The corporate name of the resulting trust company, which may
be the name, in whole or in part, of any of the merging trust companies;
(4) The names of the persons who axe to constitute the board of
directors, provided that the number and qualifications of such directors
shall be in accordance with the provisions of law relating to the number
and qualifications of directors of trust companies;
(5) The agreement shall provide further that the directors named
shall, after qualifying, divide themselves into certain classes, and that




(Missouri - cont'd.)

they nay adopt new by-laws for the consolidated trust company.
1919, p. 160; Bev. Stats, of lion

(Laws of

1329, sec, 5472.)

Consolidation agreement; terms and contents of.
The consolidation agreement must set forth:
(1) The terms and conditions of the consolidation and the method
of carrying it into effect;
(2) The name of the resulting corporation, which may he the namo,
in whole or in part of any of the consolidating corporations;
(3) The name of the city or town and county in Missouri in which the
consolidated corporation will he located;
(4) The amount of the capital stock of the corporation;
(5) The number of shares into rhich the stock has "been divided and
the par value thereof;
(6) That the shares have "been subscribed 'oy the persons named therein
as the first hoard of directors as trustees for the stockholders of the
consolidating companies, and that all of the capital stock has been paid-up
either in lawful money of the United States, or " y the capital stock,
b
surplus and undivided profits of the consolidating companies, provided
that such part of the capital as is paid for in the latter manner, shall
he received only for the amount which may he approved " y the hank commissioner;
b
(7) That the custody of all such cash and property has been placed in
the care and control of the persons naned as the hoard of directors;
(8) The number, names and addresses of the directors and that said
directors shall, after qualifying, divide themselves into classes in




•—90^(Mlssouri - cont'd.)
accordance with the provisions, of law and that they may adopt new "by-laws
for the consolidated company;
(9) The purposes for which the consolidated company is formed, which
shall he limited to the purposes then prescribed by law for trust companies;
(10) The number of directors necessary to constitute a quorum;
(11) The duration of the company;
(12) Such other provisions as nay " e necessary fully to set out the
b
rights of the consolidating companlos, their stockholders and creditors and
the plan of such consolidation.

(Laws of 1919, p. 161; Rev. Stats, of

Mo., 1929, sec. 5473.)
Consolidation or merger agreement and directors' proceedings as evidence*
A copy of the minutes of the proceedings of the "board of directors authorizing the making of the consolidation or merger agreement and
a copy of such agreement certified and verified " y the secretaries of the
b
trust companios involved "shall " o presumptivo ovidonce of the action of
b
such rospoctivo "boards".

(Laws of 1919, p. 161; Rov. Stats, of Mo., 1929,

sec. 5474.)
Consolidation or merger agreement and directors1 proceedings must " e
b
submitted to and approved by ban!; commissioner.
X copy of the consolidation or merger agreement and certified
and verified copies of the proceedings of the respective boards of directors
must bo submitted in duplicate to the bank commissioner for approval or
disapproval.

In case the bank commissioner disapproves the agroomont, "the

companies which are parties thereto may submit another plan for a merger or
consolidation under the provisions of this chapter."




(Laws of 1919, p. 161;

S-S931-

(Missouri - cont'd.)

Rev. Stats, of Mo._, 1929, sec. 5475.)
Commissioner must certify finding within thirty days .
The approval or disapproval of the hank commissioner of the
agreement must he certified hy him in writing to each trust company which
is a party to the merger or consolidation within thirty days after the
agreement has "been submitted to him.

(Laws of 1919, p. 162; Rev. Stats.

of Mo., 1929, sec. 5476.)
Agreement must " o submitted to stockholders within sixty days after its
b
approval.
In case the agreement is approved by the Dank commissioner, it
must, within sixty days after such approval, he submitted at a special
meeting to the stockholders of each trust company. Notice of the time,
place and object of this meeting must he .given two weeks in advance to
each stockholder and must also he likewise published once a week for at
least two successive wocks in a newspaper in each of the counties in
which any of tho consolidating or merging trust companies has its placo
of businoss, and for tho purpose of such notice tho city of St. Louis is
considered as a county.

(Laws of 1919, p. 162; Rev. Stats, of Mo., 1929,

sec. 5477.)
Agreement "binding if two-thirds of stockholders of respective companies
vote favorably.
If two-thirds of the stockholders of each of the consolidating
or merging trust companies vote in favor of the agreement "then such
agreement shall he valid and binding upon such trust companios". (Laws
of 1919, p. 162; Rev. Stats, of Mo., 1329, sec. 5478.)




Qfissouri - cont'd.)
When merger agreement "becomes effective.
A copy of the minutes of the stockholders' meetings at which
an agreement for a merger has "been approved, r?ith a copy of such agreoment and the hank commissioner's approval thereof, all certified and
verified " y the secretaries of the respective stockholder's meetings,
b
must he filed with the hank commissioner and with the secretary of each
of the trust companies involved. An identical copy of such minutes,
agreement and approval, together with an affidavit of the secretary of
the resulting company showing the filing of such copies with the hank
commissioner and the secretary of each of the merging companies, "shall
he filed for record and rocordod in tho office of the recorder of doeds
of each county wherein is located the place of "business of each trust
company which is party to such agreement, it "being understood that the
City of St. Louis shall he considered as a county in regard to the filing
and recording of such copies". When such copies have "been "filed for
record in the office of the recorder of deeds, the agreement and merger
shall "become effective according to its terms."

(Laws of 1919, p. 162;

Rov. Stats, of Mo., 1929, sec. 5479.)
When consolidation agreement "becomes effective.
A copy of the minutes of the stockholders meetings of the
consolidating companies at which the consolidation agreement was approved,
with a copy of the agreement and the hank commissioner's approval thereof, all certified and verified hy the secretaries of such stockholders
meetings, must he filed in the office of the hank commissioner and with
the secretary of each of the consolidating trust companies. A like copy
of such minutes, agreement and approval, with an affidavit of the secretary




x-ooai
-Jj'j-

(Hissouri - con'td.)

of one of the consolidating companies showing the filing of such copies
with the hank commissioner and the secretary of each of the consolidating
companies, must also he filed and

recorded in the office of the recorder

of deeds in each county wherein is located the place of business of each
of the consolidating companies. The city of St. Louis is considered as
a county as far as the* filing for record with tho recorder of deeds of
such copies is concerned.

Upon the filing with the recorder of deeds of

the agreement, with the approval of the bank; comr.lssior.er, "and the
proceedings above prescribed, the agreement .for the consolidation of the
trust companies, which are parties thereto, shall tako effect according
to its terms, and the consolidation shall thereupon bo conplcto, provided
the legal fees for the incorporation of such consolidated trust companies
shall have been paid to the state bank commissioner, the same as if a new
corporation were organized for the same amount of capital authorized for
such consolidated company."

(Laws of 1S19, p. 163; Rev. Stats, of Mo,,

1929, sec. 5480.)
New certificates of stock, when resulting coarpany shall issue.
The resulting company may require the return of the original
certificates of stock held by the stockholders in. either the merging or
consolidating companies, unless such c r ' c f G i - e teswibeen lost or dee-fitai.s
astroyed, "and shall cancel said original corttficafees and issue in lieu
thereof now certificate or certificates for such number of its own shares
as such stockholders may be ontitlod to receive under tho agreement providing for tho morger or for tho consolidation and according to the terms




-3rt -

****

-^94(rissouri - cont'd.)

and conditions contained in the agreement for such merger or such consolidation;" "but if the original certificates have "been lost or destroyed,
such loss or destruction must he proved by affidavit or otherwise to tho
satisfaction of the hoard of directors of the resulting company, bofore
now certificates in liou thcroof can ho issued.

(Laws of 1919, p. 163;

Rov. Stats, of i . . 1929, sec. 5481.)
'o,
Stockholders dissenting to morgor or consolidation; rights, privileges, etc.
There are also detailed provisions giving to stocldiolders who
object to or do not vote for a merger or consolidation the right to
receive a reasonable value for their stocl:, and prescribing the manner for
determining the value of the stock, the t i . within which the dissenting
ire
stockholders must assort thoir rights, the procedure for doing so, etc.
(Laws of 1919, pp. 164-166; Rev. Stats, of Ho.,

1929, sees. 5482-5485.)

Legal effect of merger or consolidation.
(a) Corporate existence merged into new company - title to
property, etc. - "The corporate existence of the merging company or companies shall he merged into that of the receiving trust company, or in the
event of consolidation, the corporate existence of the consolidating companies shall he morgod into that of the consolidated trust company; and
all and singular tho rights, privilegos and franchises, and tho rights,
title and intorest in and to all property of whatsoever IdLnd, whothor
real, personal or mixed, and things in action, and every right, privilege
interost or asset of conceivable value or benefit then existing to which
either of such companies so merging or consolidating 3hall be entitled at




-367-'

S-6931-

-'••95-»

(Missouri - cont'd.)
law or inequity, shall be fully and finally and without any right of
reversion, transferred to and vested in the receiving trust company in
case of merger, or in the consolidated trust company, in case of a
consolidation, without further act or deed, and such receiving company
or such consolidated company shall have and hold the some in its own
corporate right as fully as the sa*ne was possessed and held " y either
b
of the merging or consolidating corporations from ^7hich such rights were,
by operation of the provisions of this article, transferred."

(Laws of

1919, p. 166; Eev. Stats, of Mo., 1929, sec. 5486.)
(b) Trust and fiduciary powers, passage of to new company. "The receiving corporation under merger of (or) the new corporation
under consolidation, shall become, without further act or deed, the successor of the merging or of the consolidating corporation, in any and
all fiduciary capacities in which such merging or consolidating corporation may " e acting at the time of such merger or consolidation, and shall
b
" e liable to all beneficiaries as fully as if such receiving or consolib
dating corporations had continued their soparate corporate existonce.
All and singular the rifh-ts and privileges and the right, title and interest
in and to all property of whatsoever kind, whether real, personal or mixed,
and things in action, and every right, privilege, interest or asset of
conceivable value or benefit then existing to which either of such companies so merging or consolidating shall be entitled at law or in equity, in
any fiduciary capacity shall f\illy and finally, and withotit any right of
reversion, be transferred to and vested in the recoiving or consolidated




,

X-6933r

(Missouri - cont'd.)

corporation, without further act or deed; and such receiving or consolidated corporation shall have and hold the same as fully and in the same
fiduciary capacity and for the same purposes, and with the same powers,
duties, responsibilities and discretion, as the same were possessed and
held by the merging or consolidating corporation from which they were,
by operation of the provisions of this article, transferred.
"If any trust company which merges with or shall have merged
with another, or if any trust company which consolidates with or shall
have consolidated with another or other trust companies to form a consolidated trust company, shall be nominated and appointed or shall have
been nominated or appointed as executor, guardian, curator, administrator,
agent or trustee or in any other trust relation or fiduciary capacity
in any will, trust agreement, trust conveyance or any other conveyance
or instrument whatsoever prior to such merger or consolidation (even
though such will, trust agreement, trust conveyance, or other conveyance
or instrument shall not become operative or effective until after such
merger or consolidation shall have become effective) every such office,
trust relationship, fiduciary capacity and all of the rights, powers,
privileges, duties, discretions and responsibilities, so provided to
dcvolvo upon, vest in, or inure to tho company so nominated or appointed,
shall fully and in every respect devolve upon, vest in and inure to and
bo exercised by tho trust company into which such company so designated
in such capacity shall be or shall have been merged, or shall devolve
upon, vest in, inure to and bo exorcised by the consolidated trust company




(Mis3ourl - cont'd.)

bformed " y any consolidation to* which the trust company so designated
shall have been a party, whether there he one or more successive
mergers or consolidations."

(Laws of 1919, pp. 166 and 167; Rev. Stats.

of Mo., 1929, sees. 54S7-5490.)
(c) Obligations of consolidating companies unaffected.-

"The

rights, obligations and relations of either of the merged companies or of
the consolidating companies, in respect to any person, creditor, depositor, trustee or beneficiary of any trust shall remain unimpaired,
and the receiving corporation or the consolidated corporation shall, when
the merger or consolidation becomes effective, as in this chapter provided,
succeed to all such relations, obligations, trusts, powers and liabilities
and shall execute and perform all duties in relation thereto in the same
manner as though it had itself assumed or.been clothed with such relation,
trust or power, or had itself incurred the obligation or liability; and
the liabilities and obligations to creditors of either of the merged
companies, or of either of the consolidating companies shall not be impaired by such merger or consolidation; nor shall any obligation or
liability of any stockholder in any corporation which is a party to such
merger or consolidation be affected by any such merger or consolidation,
but such obligations and liabilities shall continue as fully and to the
same extent as existed before such merger or consolidation."

(Laws of

1919, p. 167; Rev. Stats, of Mo., 1929, see. 5488.)
Merger or consolidation does not affect pending .judicial proceedings
against consolidating companies.




Any judicial proceeding in which any merging or consolidating

(Missouri - conttd.)

company is a party is not affected "because of the merger or consolidation,
tut it may " e prosecuted to final disposition, or the resulting company
b
may he substituted as a party and judgment rendered for or against it.
(Laws of 1919, p. 167; Rev. Stats, oi Mo., 1929, sec. 5489.)

Definition of word "hank".
The word "hank" as used in the laws of Montana, applies to
any incorporated bank, trust company or Bavings hank.

(Laws of 1927,

ch. 89, sec. 2, Act approved March 8, 1927; Banking Law Pamphlet* 1927,
sec. 2, pp. 7 and 8.)
Consolidation of hanks.
"Any two (2) or more hanks may,.with the approval of the Superintendent of Banks, consolidate into one (1) hank under the charter of
either existing hank, on such terms and conditions as may'he lawfully
agreed upon hy a majority of the hoard of directors of each hank proposing
to consolidate, and he ratified and confirmed hy the vote of the shareholders of each such hank owning at least two-thirds of its capital
stock outstanding, at a meeting to he held on the call of the directors,
after sending notice to each shareholder of record hy registered mail
at least .ten (10) days prior to said meeting; provided, that the stockholders may unanimously waive such notice and may consent to such meeting
and consolidation in writing."

(Laws of 1927, ch. 89, sec. 94, Act

approved March 8, 1927; Banking Law Pamphlet, 1927, sec. 94, p. 56.)




(Montana - cont'd.)
Capital required of consolidated corporation.
The capital stock of the consolidated 'bank must " e not less
b
than that required under law for the organization of a "bank of the
class of the largest consolidating "bank.

(Laws of 1927, ch. 89, sec.

94, Act approved March 8, 1927; Banking Law Pamphlet, 1927, sec. 94, p.
56.)
Legal effect of consolidation.
"The assets and liabilities of the consolidated hank shall he
reported " y the surviving hank. All the rights, franchises, and interests
b
of said hank so consolidated in and to every specie of property, realt
personal and mixed and choses in action thereto "belonging, shall he deemed
to he transferred to and vested in such "bank into which it is consolidating
without other instrument of transfer, and ,said consolidated "bank shall
hold and enjoy the same and all rights of property, franchises, and interests in the same manner and to the same extent as was held and enjoyed by
the hank so consolidated therewith, provided, however, that merging "bank
shall transfer to the surviving hank all of its real property by good and
sufficient deed of conveyance and for that and other purposes shall remain
a body corporate for a period of at least three (3) years after merger
and shall not then dissolve without the approval of the Superintendent of
Banks."

(Laws of 1927, ch. 89, sec. 94, Act approved March 8, 1927; Banking

Law Pamphlet, 1927, sec. 94, p. 57.)

NEBRASKA.

Consolidation of banks - no provisions covering trust companies.




The laws of Nebraska do not contain any provisions covering the

£--693-1

(Nebraska - cont'd.)

consolidation or merger of trust companies; but, with reference to "banks,
the laws provide that "Any bank which is in good faith winding up its
•business for the purpose of consolidating with some other hank,, may
transfer its resources and liabilities to the bank with Trhich it is in
process of consolidation but no consolidation shall be made without the
consent of the department of trade and commerce, nor shall such consolidation operate to defeat the claim of any creditor or hinder any creditor
in the collection of his debt against such banks or either of them."

(Comp.

Stats, of Nebraska,, 1929, sec. 8-1S0; Banking Law Pamphlet, 1939, soc. 8021, p.
•20.)
NEVADA.
No provisions covering consolidation, merger, etc.
The laws of Nevada do not contain any provisions specifically
covering the consolidation, merger, etc. of banks and trust companies.
NOT HAMPSHIRE.
Consolidation of mutual savings banks with trust orbanking companies or
with other savings banks.
The laws of New Hampshire do not contain any provisions, covering
the merger or consolidation of so-called trust or banking companies or
savings banks with each other; but the laws do provide that "Any mutual
savings bank incorporated under the laws of this state, or a majority
of the members thereof, and any trust or banking company, or any other
savings bank, incorporated under the laws of this state, or a majority
»

of the members or the holders of a majority of the stock thereof, may




(New Hampshire - cont'd.)
apply " y petition to the superior court in the county in which either
b
of said petitioning

corporations is located, or to any justice of said

court in vacation, for a decree authorizing a union of said savings hank
with said trust or hanlcing company, or other savings "bank, and a dissolution of said first named savings bank in the manner herein provided".
(Laws of 1917, ch. 54, sec. 1; Public Laws,1926, ch. 263, sec. 1; Banking
Law Pamphlet, 1929, ch. 263, sec. 1, p. 30.)
Notice and hearing on petition; reference to hank commissioner " y court.
b
When the petition for consolidation is filed, the court or
justice "shall fix a time for hearing thereon, and after duo notice by
publication to all parties interested, and such other notice as the court
may order, and hearing the court shall refer said petition to the hank
commissioner".

(Laws of 1917, ch. 54, sec. 2; Public Laws, 1926, ch. 263,

sec. 2; Banking Law Pamphlet, 1929, ch. 263, sec. 2, p. 30.)
Hearing by hank commissioner; character of duties after.
The bank commissioner, after notice and hearing, must ascertain
^whether the public convenience'and advantage and the interest of said
institutions, their members, stockholders and depositors, will be promoted
by the proposed union."

(Laws of 1917, ch. 54, sec. 3; Public La-rs, 1926,

ch. 263, sec. 3; Banking Law Pamphlet, 1929, ch. 263, sec. 3, p. 30.)
Appraisal of assets and determination of amount due depositors.
If the bank commissioner approves the petition, "he 3hall appraise the assets and ascertain the liabilities of said savings bank, and
determine the net value thereof for the purpose of liquidation, the total
number of depositors therein and the amount of their respective deposits,




X-6931

(New Hampshire - cont'd.)
and, upon

such appraisal and findings, determine the proportionate share

of the net deposits due such depositors". The commissioner is authorized
to employ expert or other assistance at the
in making such appraisal.

-expense of tha petitioners

(Laws of 1917, ch. 54, sees. 3 and 4; Public

Laws,. 1926, ch. 263, sees. 4 and 5; Banking Law Pamphlet, 1929, ch. 263,
sees. 4 and 5, p. 30.)
Report to court of findings and determinations.
The Commissioner must "forthwith make a report to the court
of his findings and determinations, and of the expense of said hearings,
appraisal and findings. Upon due notice to all parties of record the
court shall thereupon enter a final decree."

(Laws of 1917, ch. 54, sec.

5; Public Laws, 1926, ch. 263, sec. 6; Banking Law Pamphlet, 1929, ch.
263, sec. 6, p. 30.)
Decree of Court, extent of; depositor's option.
After receiving such report, if "it appears that the public convenience and advantage and the interest of..said several parties will be
promoted by the action sought by said petition the court shall by decree
fix a date upon which the funds of the depositors in the savings bank to
be liquidated shall cease to draw interest, and shall authorize the trustees
or directors of said savings bank to sell and convey all of its assets to
said trust or banking company or other savings bank at the value fixed by
such appraisal, and to pay said depositors the several amounts found to
bo their due". Sach depositor in the mutual savings bank is given the
option to receive in cash from the sale of its assets the amount found to




— i?6/~-

X-S931-

(New Hampshire ,*, cont'd.)
*;
be due him or to accept a deposit in the consolidated institution for the
same amount without loss of interest.

(Laws of 1917, ch. 54, sec. 6;

Public Laws, 1936, ch. 263, sees. 7 and 8; Banking Law Pamphlet, 1929,
ch. 263, sees. 7 and 8, pp. 30 and 31.)
Unclaimed deposits and dividends.
The laws contain provisions prescribing the manner of disposing
of unclaimed deposits and dividends in the consolidating mutual savings
hank at the time of the consolidation.

(Laws of 1917, ch. 54, sec. 7;

Public Laws, 1926, ch. 263, sees. 9 and 10; Banking Law Pamphlet, 1929,
ch. 263, sees. 9 and 10, p, 31.)
Other orders court may make.
"The court shall make all other and further orders and decrees
in respect to the winding up of the affairs of said liquidated savings
hank and its dissolution that may he necessary, for the protection of all
parties interested".

(Laws of 1917, ch. 54, sec. 8; Public Laws, 1926,

ch. 263, sec. 11; Banking Law Pamphlet, 1929, ch. 263, sec. 11, p. 31.)
NSW JERSEY.

Merger of state hanks,and/or trust companies.
The laws of New Jersey authorize State banks and trust companies
having their main offices or places of business in the same municipality
to merge into another State bank or trust company.

(Laws of 1925, ch. 198,

ch. 197 and ch. 203; Banking Law Pamphlet, 1930, sec. 11, p. 59, sec. 19,
p. 119 and sec. 1, p. 155.)
Agreement for merger.




The boards of directors of such banks or trust companies may, by

A 104 *
(Hew Jersey - coii'td.)
a vote of two-thirds of the er.tire membership of each 'board, make or authorize to be made "between such "banks o " trust companies a written merger
r
agreement in duplicate and under corporate seal. A sworn copy of the proceedings of the directors' meetings "shall " e presumptive evidence of the
b
holding and action of such meetings."

(Laws of 1925, ch. 198, ch. 197 and

ch. 203; Banking Law Pamphlet, 1930, sec. 12, p. 59, sec. 20, p. 119 and
sec. 2, p. 155.)
What merger agreement must specify.
The merger agreement must name each "bank or trust company to " e
b
merged and the "bank or trust company which is to receive the merging institution or institutions, "and it shall prescribe terns and conditions
of the merger and the mode of carrying it into effect."

It may specify

the name of the receiving corporation, which may " e the name of any of
b
the merging corporations; but, in the case of a nergor of a bank into a
trust company or a, trust company into a bank, such name must comply "with
the provision of the law under which said 'continuing corporation is organized."

It may also name the persons who will constitute the board

of directors of the receiving corporation; but the number and qualifications of such directors must be in accordance with the pertinent, provisions
of law covering the number and qualifications of directors of the ld.nl
of corporation into which the merging corporation or corporations are received; "or such agreement may provide for a meeting of the stockholders
to elect a board of directors within sixty days after such nergor becones
effective and nay make provision for conducting the affairs of the corporation meanwhile."




(Laws of 1925, ch. 198, ch. 197, and ch. 203; Banking

X-GSgl-

(Ilew Jersey - cont'd.)
Law Pamphlet, 1:30, sec. 13, p. SO, ssc. 31, p. 120 and sec. 3, pp. 155
and 156.)
Merger agreement must be submitted to commissioner offrankingand insurance for approval.
The merger agreement and sworn copies of the proceedings of the
hoards of directors at which the making of the agreement

was authorized

must he submitted in duplicate to the commissioner of hanking and insurance for his approval.

(Laws of 1925, ch. 198, ch. 197, and ch. 203;

Banking Law Pamphlet, 1930, sec. 14,p. 60, sec. 22, n. 120 and sec. 4,
?. 156.)
After approval of commissioner, agreementrousthe submitted to stockholders.
Within sixty days after notice from the commissioner that the
merger agreement has been approved, it must be submitted to a special
meeting of the stockholders of the merging corporations, and, if it is
approved by two-thirds of the stockholders of each corporation, it then
becomes binding upon such corporatl on. A -sworn c p ' of the proceedings
osof such meetings is presumptive evidence of the holding and action of
such meetings.

(Laws of 1925, ch. 198, ch. 197, and ch. 203; Banking Law

Pamphlet,: 1930, see. 15, pp. 50-51, ssc. 23, p. 121, and sec. 5, pp. 156-157.)
Tiling and recording of approved agreement and copies of proceedings.
After the agreement has become binding upon the merging corporations, one copy with a copy of the written approval of the Commissioner
of Banking and Insurance, and a sworn copy of the proceedings of the
meetings at which the agreement was approved, must be filed in the office




sir-

***•

(New Jersey - cont'd.)

of the Commissioner of 'banking'and insurance. An identical copy of such
agreement, approval and proceedings "shall " e recorded in the office of
b
the clerk of the county in which is located the place of 'business of
the corporations so merged; such record "being made in the book provided
for the record of certificates of incorporation of corporations organized under the, laws of this State."

(Laws of 1925, ch. 198, ch. 197,

and ch. 203; Banking Law Pamphlet, 1930, sec. 16, p. &'i, sec. 24, p. 121
and sec. 6, p. 157.)
When merger "becomes effective.
Upon filing and recording the merger agreement with copies of
its approval " y the commissioner of "banking and insurance as above preb
scribed, "the merger agreement shall take effect according to its terms,
and the merger shall thereupon take place .as provided in the agreement."
(Laws of 1925, ch. 198, ch. 197, and ch. 203; Banking Law Pamphlet, 1930,
sec. 17, p. 62,, sec. 25, p. 122 and sec. 7, pp. 157-158.)
Legal effect of merger.
Upon the merger of any corporation into another as above provided:
(1)

"Its corporate existence shall be merged into that of such

other corporation; and all and singular its rights, privileges and franchises, and its right, title and interest in and to all property whatsoever
kind, whether real, personal or mixed, and things in action, and every
right, privilege, interest or asset

of conceivable value or benefit then

existing which would inure to it under an unmerged existence, shall be
deemed fully and finally, and without any right of reversion, transferred




(New Jersey - cont'd.)
to and vested in the corporation into rrhich it shall have

merged,

without further act or deed, and such last-mentioned corporation shall
have and hold the same in its own right as fully as the same was possessed
and held " y the merged corporation from which it was, by. operation of the
b
provisions hereof, transferred."
(2) Its rights, obligations and relations to any person, creditor,
depositor, trustee or beneficiary of any trust, remain unimpaired, and
the receiving corporation succeeds to all such relations, obligations,
trusts and liabilities, and shall execute and perform all such trusts, in
the same manner as though it had itself assumed the relation or trust, or
incurred the obligations or liability.

Liabilities and obligations to

creditors existing for any cause whatsoever shall not bo impaired by such
merger, nor "shall any obligation or liability of any stockholder in any
corporation which is a party to such merger bo affected by any such merger,
but such obligations and liabilities shall continue as fully and to the
same extent as existed before such cerger."
(3)

"A pending action or

other judicial proceeding to which any

corporation that shall be so merged is a party shall not be deemed to have
abated or to have discontinued by reason of the merger, but may be prosecuted to final judgment, order or decree in the same manner as if the merger
had not been made; or the corporation into which such other corporation
shall have been, merged may be substituted as a party to such action or proceeding, and any judgment, order or decree may be rendered for or against
it that might have




been rendered for or against such other corporation

-57*

'

X-*693i

"108'(NeW .terse^- * cont'd.)
if the merger had not occurred." (Laws of 1925, ch. 198, ch. 197, and
ch. 203; Banking Law Pamphlet, 1930, sec. 18, pp. 62-63, sec. 25, pp.
122-123 and sec. 3, i?y. 158-159.)
Maintenance of offices of merged corporations; capital required for each
office, number farther limited according to population.
The resulting corporation, "with the written approval of the
Commissioner of Banking and Insurance, may continue to conduct business
at the location or locations of the office or offices heretofore established by the merged corporations and under such office designation aa
the Commissioner of Banking and Insurance may approve"; but the paid-in
capital of the resulting corporation must be, if it is a bank, at least
fifty thousand dollars, and, if it is a trust company, at least one
hundred thousand dollars, for each office thereafter to be maintained.
Further limitations on the maintenance of such offices are that the resulting corporation can maintain but one office within the corporate
limits of a municipality "where the population by the last decennial
census is less than twenty-five thousand; not more than two offices where
such population by said census is more than twenty-five thousand and not
more than fifty thousand; not more than three offices where such population
by said census is more than fifty thousand and not more than one hundred
thousand and where such population is more than one hundred thousand only
such number of offices as the Commissioner of Banking and Insurance may
approve." In case of a merger of trust companies, it is provided further
"that the commissioner of banking and insurance shall not approve the
maintenance of more offices by the continuing corporation than tho corpora-




(New Jersey - c o n t ' d . )
t i o n into which the other corporation or corporations shall be merged
was authorized to maintain p r i o r to the date of the merger agreement,
unless at the time of such approval national tanking associations
organized under the laws of the United States and located in ITew Jerseys h a l l by an act of Congress be enabled to o r i g i n a l l y establish branch
offices or agencies for the transaction of t h e i r business in t h i s
State."

(Laws of 1925, ch. 198, as amended by Laws of 1927, ch. 2 1 , :

ch. 197, and ch. 203, as amended by Laws of 1927, ch. 14; Banking Law
Pamphlet, 1930, sec. 19, p . 53, sec. 27, p . 123 and sec. 9, p . 159.)
Issuance of new c e r t i f i c a t e s of stock.
The new corporation may require the return of the
o r i g i n a l c e r t i f i c a t e s by the stockholders in any of the merging
corporations and may issue in l i e u thereof new c e r t i f i c a t e s .
(Laws of 1925, ch. 198, ch. 197 and ch. 203; Banking Law Pamphlet,
1930, sec. 20, p . 64, sec. 28, p . 125 and sec. 10, p . 160.)
Dissenting stockholders, r i g h t s of.
There a r e also detailed provisions giving the r i g h t to stockholders of any of the merging corporations who did not vote for or
object to the merger to demand payment for t h e i r shares of stock, and
prescribing the procedure and conditions for securing such payment.
(Laws of 1925, ch. 198, ch. 197 and ch. 203; Banking Law Pamphlet, 1930*
sec. 2 1 , p . 64, sec. 29, pp. 125-125 and sec. 1 1 , p . 160.)




—ncr(Hew Jersey - c o n t ' d . )
Consolidation of State bank or t r u s t company with national bank;
surrender of charter.
When two-thirds of the stockholders of any State bank or
t r u s t company give their 'written consent to consolidate with a national
bank, and the d i r e c t o r s of such bank or t r u s t company f i l e in the
Department of Banking and Insurance a c e r t i f i c a t e under t h e i r hands
that such consent has been given and that tho d i r e c t o r s intend to act
in pursuance thereof, such bank or t r u s t company " s h a l l be deemod and
taken to have surrendered it's charter".

(Laws of 1902, ch. 28 and

Laws of 1920, ch. 300, as amended \>y Laws of 1928, ch. 208 and ch. 207;
Banking Law Pamphlet, 1928, sec. 1, p . 47, and sec. 8, p . 98.)
Continuance of corporate existence for three years for certain purpose.
I t i s provided, however, that every such State bank or t r u s t
company " s h a l l be continued a body corporate for the term of three
years after the time of such surrender for the purpose of prosecuting
and defending s u i t s by or against i t , and closing i t s concerns, but
not for any other business or purposes whatsoever".

The board of

d i r e c t o r s of the consolidated bank i s to act a s , and be,taken to be,
the board of d i r e c t o r s of such bank or t r u s t company while closing
i t s concerns during such three year period.

(Laws of 1902, ch. 28,

and Laws of 1920, ch. 300, as amended by Laws of 1923, ch. 208 and
ch. 207; Banking Law Pamphlet, 1928, soc. 1, p . 4 8 , and sec. 8, p .
99.)




Xr6933r

-373( t e Jersey -* cont'd.)
iTw
Legal effect of consolidation:,




(a) of State with national bank.
"When the charter of such bank shall be surrendered to the
State, as hereinabove provided, and any such bank shall have been
organized as or consolidated with a banking association under
the laws of the United States, or have become capable in law as
a new or consolidated national bank to take and hold property,
all the assets, real and personal, choses in action and all rights
and privileges of every nature and description, of any such bank
shall immediately, by act of law and without any conveyance or
transfer, be vested in and become the property of the said association, formed or consolidated as aforesaid under the laws of the
United States, to be held by said association or its stockholders
in as ample and beneficial manner for all purposes as the same can,
by virtue of the laws of the United States, be held and enjoyed;
but nothing in this section shall be so construed as to impair
the obligation existing in the first section of this act."

(Laws

of 1902, ch. 28, as amended by Laws of 1928, ch. 208; Banking Law
Pamphlet, 1928, sec. 4, p. 50..);
(b) of trust company with national bank>
In this connection the laws provide " * * * that all rights*
'
privileges, choses in action, property,, real and personal, and
all trust powers, duties, designations and appointments made or
contained by or in any deed, will,, instrument, order or decree,

X-6931

(New Jersey - cont'd.)

executed or made before the filing of such certificate, shall
vest in, devolve upon, and inure to the benefit of Baid new or
consolidated national bank."

(Laws of 1920, ch. 300, as

amended by Laws of 1928, ch. 207; Banking Law Pamphlet, 1928,
sec. 8, p. 99.)
Dissenting stockholders, rights of.
The lawsalso contain detailed provisions with reference
to the rights of stockholders who dissent to the consolidation.
(Laws of 1902, ch. 28, and Laws of 1920, ch. 300; Banking Law Pamphlet,
1928, sees. 2, and 3, pp. 48 and 49, and sec. 9, p. 99.)
Extent of act relating to consolidation of State bank with national
bank.
"The authority conferred by this act may be exercised by
the stockholders of any bank incorporated or organized by the authority of this state, notwithstanding said bank may have been converted
into a national banking association under the laws of the United
States prior to the passage of this supplement."

(Laws of 1902, ch.

28; Banking Law Pamphlet, 1928, sec. 5, p. 50.)
Merger or consolidation of corporations "for the insurance or guaranty of
title to lands" with trust companies. '
The laws of New Jersey also contain detailed provisions providing for and regulating the merger or consolidation of corporatiDns
"for the insurance or guaranty of title - o lands" with State trust
t
companies which, in many respects, are substantially similar to the




X-69*
-«-il3-(New Jersey - c o n t ' d . )
provisions digested above.

(Laws of 1923, ch. 97; Banking Law Pamphlet,

1930, sees. 1-6, pp. 146-150.)
N W MEXICO.
E
Consolidation or merger of 'banks or t r u s t companies.
The laws of New Mexico covering banks and t r u s t companies do not
contain provisions having specific reference to the merger, consolidation,
e t c . , of such i n s t i t u t i o n s ; but these laws do provide that "Except,as herein limited incorporated banks shall exercise and enjoy a l l the r i g h t s and
p r i v i l e g e s and bo subject to a l l the l i a b i l i t i e s and r e s t r i c t i o n s provided
by law for corporations in general."

(Laws of 1915, ch. 67, sec. 55; New

Mexico S t a t s . , Annot., 1929, sec. 13-156, p. 325; Banking Law Pamphlet, 1929,
sec. 55, p . 20.)

These so-called banking laws also provide t h a t the word

"bank", as used therein, includes commercial banks, savings banks and t r u s t
companies but does not include national banks.

(Laws of 1915, ch. 67, sec. 2;

New Mexico S t a t s . , Annot., 1929, sec. 13-102, p . 316; Banking Law Pamphlet,
1929, sec. 2, p , 5.)
The law covering "corporations in general" contain elaborate consolidation or merger provisions,

(Laws of 1905, ch. 79, sees. 109-115; New

Mexico S t a t s . , 1929, sees. 32-213 to 32-219 inclusive)

and also provide that

such provisions s h a l l be held applicable to banks and t r u s t companies.
(Laws of 1905, ch. 79, sec. 131; Now Mexico S t a t s . , Annot., 1929, sec. 32234 ) .

Such provisions are set forth'below.

Authority for consolidation or merger.




{,

Axiy two or more corporations organized under- any law or laws

-3 7t>-

X-69S-3,

—H4—
(Hew Mexico - cont'd.)
of this state for the purpose pf carrying on any kind of "business of the
same or a similar nature may merge or consolidate into a single corporation, which may he either one of said merging or consolidating corporations, or a new corporation to he formed " y means of such merger and
b
consolidation."

(Laws of 1905, ch. 79, sec. 109; Hew Mexico Stats.,

Annot., 1929, sec. 32-213, p. 483.)
Directors' agreement to merge or consolidate; contents of.
The directors of the several corporations involved may under
corporate seal enter into a "joint agreement" for the merger or consolidation of such corporations. The agreement must prescrihe the terms and
conditions of the merger or consolidation, the mode of carrying it into
effect, the name of the resulting corporation with the number, :;ames and
residences of its first directors and officers, the number and value of
the shares of capital stock, the manner of converting the stock of the
constituent corporations into stock of the resulting corporation,, and, if
a new corporation is created, how and when the directors and officers
will he chosen or appointed.

The agreement may also contain such other

provisions as the contracting directors may deem necessary to perfect
such merger or consolidation.

(Laws of 1905, ch. 79, sec. 110, subd. 1;

New Mexico Stats., Annot., 1929, sec. 32-214, subd, 1, pp. 483 and 484.)
Submission of agreement to stockholders; approval of; effect of.
The agreement must he submitted to tho stockholders of each of
the corporations involved at a special mooting after twenty days' notice
of tho timo, place and object of such meeting has been given to oach stock-




~

377-

**-Jfc£g—
(Hew Mexico - cont'd.)
holder.

If two thirds of the stockholders of each corporation vote for the

adoption of the agreement, that fact mast he certified thereon hy the secretary of each corporation under its corporate seal. The agreement
so adopted and certified must he filed with the state corporation commission
and then must

,r

be deemed and taken to be the agreement and act of merger

or consolidation of the said corporations." A copy of this agreement
certified undor seal hy the corporation commission is "evidence of the existence
of such new or consolidated corporation."' (Laws ol 1905, ch. 79, sec.
110, subd. 2; New Mexico Stats., Annot.,1929, sec. 32-214, subd. 2, p.
484.)
Legal effect of consolidation or merger.
"Upon making and perfecting the said agreement and act of merger
or consolidation, and filing the same, in .the office of the state corporation commission,:the several corporations shall be one corporation, by
the name provided in said agreement (in case a new corporation shall be
created thereby), or by the name of the consolidated corporation into
which said other contracting corporation or corporations, shall be so
merged or consolidated, as the case may be, and possessing all the
rights, privileges, powers and franchises, as woll of a public as of a
private nature, and being subject to all the restrictions, disabilities
and duties of each of such corporations so merged or consolidated, except
as altered by the provisions of this article."

(Laws of 1905, ch. 79,

sec. Ill; New Mexico Stats., Annot., 1929, sec. 32-215, p. 484.)
"Upon the consummation of said act of merger or consolidation,
all and singular, the rights, privileges, powers and franchises of each




X-6931

(New Mexico - cont'd.)

of said corporations, and all property, real, personal and mixed, and
all deists due on whatever account, as well for stock subscriptions as
all other things in action or "belonging to each of such corporations,
shall he vested in the consolidated corporation; and all property, rights,
privileges, powers and franchises, and all and every other interest shall
be thereafter as effectually the property of the consolidated corporation
as they were of the several and respective former corporations, and the
title to any real estate, whether by deed or otherwise, under the laws
of this state, vested in either of such corporations, shall not revert or
be in any way impaired by reason of this article: Provided, that all
rights of creditors and all liens upon the property of either of said former corporations shall he preserved unimpaired, and the respective former
corporations may he deemed to continue in existence, in order to preserve
the same; and all dehts, liabilities and duties of either of said former
corporations shall thenceforth attach to said consolidated corporation,
and may be enforced against it to the same extent a3 if said debts,
liabilities and duties had "been incurred or contracted by it."

(Laws of

1905, ch. 79, sec. 112; New Mexico Stats,, Annot., 1929, sec. 32-216, p.
484.)
Dissenting stockholders, rights of.
Provision is made for the appraisal and payment of the value of
stock held by any stockholder of any of the corporations involved who
did not vote in favor of the merger or consolidation.

(Laws of 1905,

ch. 79, sees. 113 and 114; New Mexico Stats., Annot., 1929, sees. 32-217
and 32-218, pp. 484 and 485.)




a-ll?->(I7ew Mexico - cont'd.)

State corporations authorized to merge with corporations of "other states
and territories."
"Corporations organized under the lays of other states and territories may also be merged with corporations organized under the laws*of
this state, in accordance with the provisions of this article."

(Laws

of 1905, ch. 79, sec. 115; New Mexico Stats., Annot., 1939, sec. 32-219,
p. 485.)
Consolidated corporation authorized to issue "bonds and mortgage property.
The consolidated corporation is authorized to issue "bonds or
other obligations "to an amount sufficient with its capital stock to
provide for all the payments it will be required to make or obligations
it will be required to assume," in order to effect the merger or consolidation; and to secure the payment of such bonds or obligations it may
mortgage its property.

The consolidated corporation may also purchase

and sell stocks of other corporations and may issue capital stock to the
stockholders of the constituent corporations in exchange or payment for
their original shares in the manner and on the terms specifiod in the
agreement of merger or consolidation.

(Laws of 1905, ch. 79, sec. 11E>;

New Mexico Stats., Annot., 1929, sec. 32-219, p. 485.)
Sale or purchase of assets.
The laws also provide that "any corporation * * * shall have
power to sell, convey and transfer or exchange all of its assets, -property,
rights, -privileges, franchises (except its primary franchise), good will,
easements, rights of way, and all.other property and property rights it




X-693*

(New Mexico - cont'd;)

may use or possess; Provided, however, that no corporation shall have
the right to sell, transfer or exchange any contract, or property, or
rights derived therefrom or thereunder, not assignable by its terms."
(Laws of 1927, ch. 85, sec. 1; New Mexico Stats., Annot., 1929, sec.
32-1201, p. 514.)
Any corporation is also empowered "to purchase and acquire all
of the assets, property, rights, privileges, franchises (except its primary
franchise), good will, easements, rights of way, and all other property
and property rights, of any other corporation * * * ".

(Laws of 1927,

ch. 85, sec. 2; New Mex.ico Stats., Annot., 1929, sec. 32-1202, p. 514.)Consent of stockholders necessary.
The consent of two-thirds of the stockholders of the vendor
corporation to "such sale or exchange" is required which shall be given
at a special meeting called for that purpose, "or if the by-laws fail to
provide for special meetings, then according to requirement for notice of
annual meeting, which notice shall clearly state the time, place and
purpose of such meeting".

(Laws of 1927, ch. 85, sec. 3; New Mexico

Stats., Annot., 1929, sec. 32-1203, p. 515.)
Dissenting stockholders of the vendor corporation may
notify its secretary in writing of the fact, of their objection to
the proposed sale or exchange on or before the day of the meeting of the stockholders. Within ninety days after the sale or




-X--6931

-3 f / ~
(Hew Mexico - cont'd.)

exchange, the vendee corporation, upon demand of such dissenting
stockholders and upon their surrender to the vendor corporation
of their stock for cancellation, shall pay them the market value
of their stock, which in no event can be less than the book value
of such stock according to the last balance sheet of the selling
corporation.

Amounts so paid shall be deducted from the purchase

price of the property in question.

(Laws of 1927, ch. 85, sec.

3; New Mexico Stats., Annot., 1929, sec. 32-1203, p. 515.)

Limitations on actions to question legality of sale.
Suits to attack any sale or exchange must be brought
within three months after the recording of the conveyance or other
instrument evidencing such sale in the county wherein the
property or any part of it sold or exchanged is located.

(Laws

of 1927, ch. 85, sec. 4; Hew Mexico Stats., Annot., 1929, sec.
32-1204, p. 515.)

ray YORK.
Merger of banks and trust companies.
The laws of Hew York provide that "Any two or more
corporations, other than savings banks, organized under any
one article of this chapter

(ch. 2 of the Consolidated Laws

of 1914, ch. 369, as a-nended )

or under the laws of this state

for the purposcsor any of them mentioned in any one article of




X-623T

(iTew York - cont'd.)

this chapter, or for tho 'ruroosas or any of them mentioned in both
articles three (covering banks) and five (covering trust companies) of
this char>tor, aro hereby authorised to nier&e one or more of such corporations into another of them as prescribed in succesding sections of
this article."

(Banking law, sec. 487, subd. 1. )

With particular reference to savings hanks, the laws provide
that .any two of such "banks "located in a city of the first class and in
the same county or borough, or any two or more savings banks located elsewhere in the state and in the same or adjoining counties, are hereby authorized to :aerge as prescribed in succeeding sections of this article.-')
(Banking Law, sec. 487, subd. 2.)
The laws also provide that "Any national banking association
is hereby authorized to merge itself into a State bank or trust company
located in the same county, city, town or village in the manner prescribed
in succeeding sections of this article."

(Banking Law, sec. 487, subd. 3.)

Agreement for merger.
The boards of directors of each of the corporations which are a
party to the merger, by a vote of the majority, or, if the corporations
are savings banks, by a vote of two-thirds of the entire membership of
each board of trustees, may make or authorise to " e made a written merger
b
agreement in duplicate and under corporate seal. A sworn copy of the
proceedings of such meetings, made by the respective secretaries, is
presumptive evidence of the holding and action of such meetings.
Law, sec. 488.)




(Banking

-3p *
(New York • cont'd.)
What agreement merger oust specify.
The merger agreement must specify each corporation to he merged
and the corporation which is to.receive the merging corporation or corporations "and it shall prescrihe the terms and conditions of the merger
and the mode of carrying it into effect."

It may provide the name of

the receiving corporation, which may he the name of any of the merging
corporations, and it may also name the persons who rill constitute the
hoard of directors or trustees of the receiving corporation; hut the
number and qualifications of such directors or trustees must he in accordance with the provisions of law relating to the number and qualifications of directors or trustees of the class of corporation into which
the merging corporation or corporations are merged; "or, except in the
case of savings hanks, such agreement may provide for a meeting of the
shareholders or stockholders to elect a hoard of directors within sixty
days after such merger, and may make provision for conducting the affairs
of the corporation meanwhile."

In case of a merger a.;*reeinent between trust

companies, the agreement must provide that the directors named or elected,
after qualifying, shall divide themselves into classes as provided hy the
pertinent provisions of the law covering trust companies, and that they
may adopt new hy-laws for the resulting corporation.

(Banking Law, sec.

488.)
Agreement must he submitted to superintendent for approval.
The merger agreement and sworn copies of the proceedings of the
hoards of directors or trustees at which the making of the agreement was
authorized, must be submitted in duplicate to the superintendent of hanks




(Hew York - cont'd.)
for his approval.

(Banking Law, sec. 489.)

Submission of approved agreement to stockholders necessary.
Except in the case of savings banks, the merger agreement most
he submitted to a special meeting of the stockholders of the merging
corporations within.sixty days after notice of its approval hy the superintendent of hanks.

If it is approved hy two-thirds of the stockholders

of each of the corporations, or in the case of "savings and loan associations hy the affirmative vote of at least two-thirds of the members present in person or hy proxy at such meetings," provided a copy of the morger
agreement shall have accompanied the required notice hy mail of such
special meetings, it then "becomes "binding upon the corporations involved
in the merger.

(Banking Law, sec. 490.)

The merger agreement of savings "banks, within sixty days after
notice to such "banks of its approval " y the superintendent of banks, mast be
b
submitted to a special moating of the board of trustees ' f each of tho savings
i
banks.

A notice of at least fifteen days specifying tho time, place and object

of the mooting, and accompanied by a complete copy of the merger agreement,
must-bo given by mail to each trustee.

If tho agreement is approved " y a vote
b

of throo-fourths of all the membera of each board of trustees, it then becomes
binding upon such savings banks.

(Banking Law, soc. 491.).

Filing of approv&d agreement and copies of proceedings.
After the agreement has become binding upon tho merging corporations, one copy with a copy of the written approval of the superintendent
and a sworn copy of the proceedings of the meetings at which the agreement
was approved, made hy the respective secretaries, must be filed in the




X-69S3t-

(New York - cpnt*&>)
office of the superintendent. 'Another like copy of such agreement, approval and proceedings must be filed in the office of the clerk of the
county in which is located the principal place of business of the
receiving corporation.

(Banking Law, sec. 492.)

' T e merger takes effect.
•hn
Upon filing of the papers as above prescribed, "the merger
agreement shall take effect according to its terms and the merger shall
thereupon take place as provided in the agreement."

(Banking Lav/, sue.

493.)
Legal effect of merger.
"Upon the merger of ariy corporation into another as provided in
this article:
"1.

Its corporate existence shall be merged into that of such

other corporation; and all and singular its rights, privileges and franchises, and its right, title and interest in and to all property of whatsoever kind, whether real, personal or mixed, and things in action, and
every right, privilege, interest or asset of conceivable value or benefit
then existing which would inure to it under an unmorged existence, shall
bo deemed fully and finally, and without any right of reversion, transferred to and vested in the corporation into which it shall have been
merged, without further act or deed, and such last-mentioned corporation
shall have and hold the same in its own right as fully as the same was
possessed and held by the merged corporation fron which it was, by operation of the provisions of this article, transferred.




n

2.

Its rights, obligations and relations to any person, credi-

X-6S3*.
-r--l'$4-<~
(New York - cont'd.)

tor, depositor, trustee or "beneficiary of any trust, shall remain unimpaired, and the corporation into which it shall have "been merged shall
by such merger succeed to all such relations, obligations, trusts and
liabilities, and shall execute and perform all such trusts, in the same
manner, as though it had itself assumed the relation or trust, or incurred the obligation or liability; and its liabilities and obligations
to creditors existing for any cause whatsoever shall not be impaired by
such merger; nor shall any obligation or liability of any stockholder or
shareholder in any corporation which is a party to such merger be effected by any such merger, but such obligations and liabilities shall
continue as fully and to the same extent as existed before such merger.
n

3.

A pending action or other judicial proceeding to which any

corporation that shall be so merged is a party, shall not be deemed to
have abated or to have discontinued by reason of the merger, but may be
prosecuted to final judgment, order or decree in the same manner as if
the merger had not been made; or tho corporation into which such other
corporation shall have been merged may be substituted as a party to such
action or proceeding, and any judgment, order or decree may be rendered
for or against it that might have been rendered for or against such other
corporation if the merger had not occurred.H

(Banking Law, sec. 494.)

Issuance of new certificate of stock.
The receiving corporation may require the return of the original
certificate of stock held by the stockholders in the merging corporations
and may issue new certificates in lieu thereof.




(Banking Law, sec. 495.)

--42B-(Hew York - cont'd.)

DlBBenting stockholders, rights of.
The laws also contain provisions giving to stockholders of any
of the merging corporations who did not vote in favor of the merger,
the right to object thereto and demand payment for their'shares; in the
case of savings and loan association or credit unions, if such stockholders are borrowers, to demand liquidation of their obligations and
cancellation of their shares.

(Banking Law, sec. 496.)

Consolidation of State "bank or trust company with national."bank.
Whenever a State hank or trust company "shall have become consolidated" with a national bank it must notify the superintendent of banks of such
fact "and shall file with him a copy of its authorization as a national
banking association or a copy of the certificate of approval of consolidation, certified by the Comptroller of the Currency."

(Banking Law, sees.

137 and 226.)
Legal effect of consolidation.
Upon doing the acts above described, such State bank or trust
•company "shall thereupon cease to be a corporation under the laws of this
state, except that for the term of three years thereafter, its corporate
existence shall be deemed to continue for the purpose of prosecuting or
defending suits by or against it, and enabling it to closo its concerns,
and to dispose of and convey its property".

Such consolidation does not

release any such State bank or trust company from its obligations to pay
and discharge all the liabilities created by law or incurred by it, or
any tax imposed by the laws of this state in proportion to the time which
has elapsed Bince the next preceding payment therefor, or any assessment,




(New York - cont'd.)

penalty or forfeiture imposed or incurred under the laws of this state,
up to the date of its becoming consolidated .with a national bank.
At the time - ? e such consolidation becomes effective all the
,hn
property of the State banic or trust company "including all its right,
title and interest in and to all property of whatsoever kind, whether
real, personal or mixed, and things in action, and every right, privilege,
interest and asset of any conceivable valae or benefit then existing,
belonging or pertaining to it, or which would inure to it, shall immediately by act of law and without any conveyance or transfer, and without
any further act or deed, be vested in and become the property of the
national bank, which shall have, hold and enjoy the same in its own
right as fully and to zh.e same extent as the same was possessed, held
and enjoyed" by the State bank or trust company. The national bank is a
continuation of the entity and identity of the state bank or trust company
and "all the rights, obligations and relations of the State bank or trust
company to or in respect to any person, estate, creditor, depositor,
trustee or beneficiary of any trust, and in, or in respect to, any executorship or trusteeship or other trust or fiduciary function, shall remain
unimpaired, and the national bank as of the time of the taking effect of
such * * * consolidation shall succeed to all such rights, obligations,
relations and trusts, and the duties and liabilities connected therewith,
and shall execute and perform each and every such trust or relation in the
same manner as if the national bank had itself assumed the trust or relation
including the obligations and liabilities connected therewith.




If the State

X=693i

-J V9 (New York * eont*d.)
*

"bank (or trust company) is acting as administrator, co-administrator,
executor, co-executor, trustee or co-trustee, of or in respect to any
estate or trust "being administered under the laws of this state, such
relation, as well as any other or similar fiduciary relations, and all
rights, privileges, duties and obligations connected therewith shall
remain unimpaired and shall continue into and in said national "bank from
and as of the time of the taking effect of such * * * consolidation,
irrespective of the date when any such relation may have "been created or
established and irrespective of the date of any trust agreement relating
thereto or the date of the death of any testator or decedent whose estate is "being so administered." Nothing done in connection with the
consolidation of a State "bank or trust company with a national "bank,
"shall, in respect to any such executorship, trusteeship or similar
fiduciary relation, " e deemed to " e or to effect, under the laws of this
b
b
state, a renunciation or revocation of any letters of administration or
letters testamentary pertaining to such relation, nor a removal or resignation from any such executorship or trusteeship or other fiduciary relationship, nor shall the same " e deemed to be of the same effect as if
b
the executor or trustee or other fiduciary had died or "otherwise become
incompetent to act".

(Banking Law, sees. 1 7 and 22S.)
.7

Superintendent of banks must post names and locations of merging corporations, and dates of such merger.
The superintendent of banks is required to keep in his office
a bulletin board accessible to the public upon which must be posted every
Friday the names and locations of all corporations that have been merged







X-6931

-i ?o (New Yofk - cont'd.)

under any of the provisions above digested and the dates of
such merger.

(Banking Law, sec. 82

(12,).)

NORTH CAROLINA.

Definition of the word, "bank".
The term "bank" when used in the following provisions of the laws of North Carolina "shall be construed
to mean any corporation, partnership, firm, or individual
receiving, soliciting, or accepting money or its equivalent
on deposit as a business: Provided, however, this definition
shall not be construed to include building and loan associations, Morris Plan companies, industrial banks or trust companies not receiving money on deposit",

(Cons. Stats, of N.

C., sec. 216 (a); Banking Law Pamphlet, 1S27, sec. 216 (a),
p. 3.)

Consolidation or transfer of assets.
The laws of North Carolina provide that "A bank
may consolidate with or transfer its assets and liabilities
to another

bank".

(Cons. Stats, of N, C , sec. 217 (k);

Banking Law Pamphlet, 1927, sec. 217 (k), p. 7.)
It is further provided tha.t any bank or trust company incorporated under the laws of North Carolina may con-

-&?f -

(North Carolina- cont'd.)

solidate with any national "bank under the charter of the
latter or under a new charter issued to such consolidated
hank upon such terms and conditions as may he lawfully
agreed upon, provided the laws offtorthCarolina governing
the consolidation of such hank3 shall he first complied
with as to the consolidation of such bank or trust company.

(Laws of 1929, ch. 148, p. 171.)

Proceedings authorizing consolidation or transfer of
assets; agreement; filing of.

Before such consolidation or transfer of assets can
become effective, each bank involved must file with the
commissioner of banks certified copies of all proceedings
of its board of directors and stockholders setting forth
that two-thirds of the stockholders voted for the consolidation or transfer.

The stockholders proceedings

must also contain a complete copy of the agreement of
consolidation




fc-6931
—1JKJ-*
(NoHh Carolina * cont'd.)

or transfer, of assets which was entered into by the hanks concerned.
(Cons. Stats, of N. C , sec. 217 (k), as amended " y Act of April 2, 1931;
b
Banking Law Pamphlet, 1927, sec. 217 (k),p. 7, as amended hy Act of
April 2, 1931.)
Examination of hanks involved; consent of commissioner offranksnecessary
to consolidation or transfer; notice of consolidation or transfer must he
published.
When the stockholders1 and directors' proceedings have been
filed as above prescribed, the commissioner of banks must make an examination of each bank to determine whether the interest of the depositors,
creditors, and stockholders of each bank are protected, and whether such
consolidation or transfer is made for legitimate purposes. No consolidation or transfer can be made without the consent of the commissioner of
banks and his consent or rejection must be* based upon the examination
above referred to. Expenses of such examination must be paid by the banks
examined. Notice of the consolidation or transfer must be published
for four weeks before or after the same is to become effective, at the
discretion of the commissioner of banks, in a newspaper published in a
city, town, or county in which each of the banks concerned is located.
A certified copy of such published notice must be filed with the commissioner of banks.

(Cons, Stats, of N. C , sec. 217 (k), as amended by Act

of April 2, 1931; Banking Law Pamphlet, 1927, sec. 217 (k), p. 7, as
amended by Act of April 2, 1931.)
Rights of creditors not impaired by consolidation or transfer; corporate
existence continued for three years.




In case of either transfer or consolidation the rights of creditors




S-6931'

(North Carolina - cont'd.)

are preserved unimpaired, and the respective companies are
continued in existence to preserve such rights for, a period
of three years.

(Cons. Stats, of 2T. C., sec. 217 (k);

Banking Law Pamphlet, 1937, sec. 217 (k), p. 7.)

Legal effect of consolidation.

In case of a consolidation, when the agreement
for consolidation is made and a certified copy together with
a certified copy of its approval " y the coranissioner of banks
b
are filed with the Secretary of State, the consolidating
hanks "shall be held to be one company, possessed of the
rights, privileges, powers, and franchises of the several
companies, but subject to all the provisions of law under
which it is created."

Directors and other officers named

in the agreement, may serve until the first annual meeting
for election of officers and directors, the date for which
must be named in the agreement.

"On filing such agree-

ment, all and singular, the property and rights of every
kind of the several companies shall thereby be transferred and vested in such new company, and be as fully
its property as they were of the companies parties to the




fr693i»

(North Carolina- cont'd.)

agreement."

(Cons. Stats, of IT. C., sec. 217 (1), as

amended by Act of April 2, 1931; Banking Law Pamphlet,
1927, sec. 217 (1), p. 7, as amended by Act of April
2, 1931.)
A similar provision is made in the case of the
consolidation of a State hank or trust company with a
national hank under the charter of the latter or under
a new charter; and it is expressly provided that the right
of succession as trustee, executor or any other fiduciary
capacity shall pass to the consolidated institution.

(Laws

of 1929, ch. 148, p. 171.)

SOUTH DAKOTA.

Consolidation or merger of "bonking associations".
The laws of ITorth Dakota provide that any two
or more State banking associations
capital,

assets, and liabilities,

"may consolidate their

rs—133" '
•
(North Dakota -,,cont * , ,
&.)

or one or more of such associations may be merged into another" in the
manner set out "below.

(Supp. to 1913 Comp. Laws, sec. 5191cl; Banking

Law Pamphlet, 1929, sec. 5l91cl, p. 52.)
Meaning of terms.
"The term 'consolidation' as used herein shall mean the consolidation of the liabilities, assets and corporate existence of two or more
associations into a single association, which shall issue its stock to
stockholders in the consolidating associations in return for the assets of
the consolidating associations.
"The term 'merger' as used herein shall mean the taking over, or
the absorption of the assets of one association by another, and the assumption of the liabilities of the association, or associations, whose assets
and liabilities are taken over.
"The term 'old association' where hereinafter used means the
associations which are consolidating or merging into the other associations,
and the term 'new association' means the association into which the other
associations are being consolidated or merged."

(Supp. to 1913 Comp.

Laws, sec. 5191c2; Banking Law Pamphlet, 1929, sec. 5l91c2, p. 52.)
Meeting to act upon consolidation or merger; notice of.
If two or more banking associations desire to consolidate or
merge, the directors of each association "shall call a special meeting of
the stockholders", the notice of which must state definitely the purpose
for which it is called, to act upon the consolidation or merger, or the
matters may be acted on at a regular stockholder's meeting.




In the latter

—134:-*
(North Dakota - cont'd.)

event, notice that the consolidation or merger will be considered must be
given to each stockholder at least ten days prior tc the meeting.

(Supp.

to 1913 Comp. Laws, sec. 5191c3; Banking Law Pamphlet, 1929, sec. 5191c3,
p. 53.)
Vote of stockholders^
The stockholders mast put the question of the proposed consolidation or merger to a vote and the question do put "shall embody the proposed amount of capital stock of the consolidated or merged corporation";
but such amount may be varied by the State Examiner or court on passing on
the consolidation or merger.

"The proposal for consolidation or merger

shall be deemed lost, unless two-thirds of all the stock shall vote in
favor thereof."

(Supp. to Comp. Laws of 1913, sec. 5191c4; Banking Law

Panphlet, 1929, sec. 5191c4, p. 52.)
Capital required of new association.
A consolidation can not be made unless the new association "have
a capital of at least two-thirds of the aggregate capital of the old associations, but it may have a larger capital than that of the old associations."

(Supp. to 1913 Comp. Laws, sec. 5191c5; Banking Law Pamphlet, 1929,

sec. 5191c5, p. 52.)
Time of stockholders meeting.
The several stockholders meetings at which the consolidation or
merger is acted upon must be held at such times that the result of all
of them may be certified to the State Examiner within thirty days from
the date of the holding of the first meeting.




The result of each meeting,

X-69S1-,

(Horth Dakota - cont'd.)

within ten days after it is held, must he certified to the State Examiner
" y the chairman and secretary of the meeting.
b

(Supp. to 1913 Comp. Laws,

sec. 5191c6; Banking Law Pamphlet, 1929, sec. 5191c6, p. 53.)
Examination of consolidating associations.
Upon receiving certificates showing favorable action by all of
the consolidating associations, "the state Examiner shall cause a thorough
examination of the condition of the said associations to be made with a
view of determining whether their condition is such that the proposed
consolidation or merger would result in a sound and efficient banking
association adapted to the needs of tho community in which it is proposed
to operate."

(Supp. to 1913 Comp. Laws, sec. 5191c7; Banking Law Pamphlet,

1929, sec. 5191c7, p. 52.)
Notice of findings; State Examiner may require cha.y?es in conditions.
Upon completing his examination, the State examiner must advise
each of the associations if he finds that a consolidation or merger is
desirable.

If the conditions existing are not desirable for the consoli-

dation or.merger, the State Examiner shall indicate any changes therein
necessary to correct the situation; and he may prescribe a time within
which such changes may be made to warrant his approval.

(Supp. to 1913

Comp. Laws, sec. 5191c8; 3anking Law Pamphlet, 1929, sec. 5191c8, p. 53.)
Appeal may be taken from adverse decision of State Examiner.
If the State examiner reaches a decision adverse to the consolidation or merger, an informal appeal nay be made to the Banking Board, "and
the Board shall, as speedily as possible, set a time when it will hear any




X-6S3i»

(iTorth Dakota - sont'cJ.)

reasons that may " e advanced why the findings of the State Examiner
b
should " e reversed; and upon s i h hearing, it shall make such order
b
vc.
as seems proper in the premises."

(Supp. to 1913 Co^tp. Laws, sec. 5l31c8;

Banking Law Pamphlet, 1929, sec. 5191c8, p. 53.)
finding favorable to consolidation or merger, representative of participating associations must meet; schedule of assets; proportion of stocl: to
he accredited to old stockholders.
If the State examiner, or the Banking Board on appeal, finds
favorably with reference to the consolidation or merger, each of the
participating associations, by its Board of Directors, must appoint one
or more representatives to mewt with the representatives of the other
association.

These representatives must determine and make a schedule

of the assets of each of the participating associations and must also
"schedule all the indebtedness of the old associations, and only such
assets shall he retained by the old associations as the State Examiner
shall deem not proper assets to bo held by the new associiition". In case
of a consolidation, the representatives must agreo vpon the proportion
of the stock in tho now association to bo accredited to the stockholders
of each of the old associations;

"but tho distribution of such stock

among the stockholders of the several old associations shall be by the
old associations as hereinafter provided for."

(Supp. to 1913 Comp. Laws,

sec. 5191c9; Banking Law Pamphlet, 1929, sec. 5191c9, p. 53.)
Schedules and agreement must be put in writing; State examiner may approve
or disapprove; appeal from decision of.
The schedules and agreement above referred to must be put in
writing and signed in duplicate by the representatives of the old associa-




X-6931- 137- (Worth Dakota - cont'd.)

tions and are ""binding upon th.an and non-revocable".

If the associations

cannot agree, no consolidation or merger shall take place. Upon "agreeing and signing the agreement as aforesaid, one of the duplicates shall
he delivered to the State Examiner who may either approve or disapprove
the same, or make suggestions for the modification thereof as a condition
of approval, and he may fix a time within which the conditions shall he
met, and likewise agreed to in writing are resubmitted to him. And in this
case likewise the association may informally appeal from the decision of
the State Examiner to the Banking Board."

(Supp. to 1913 Coop. Laws, sec.

5191cl0; Banking Law Pamphlet, 1929, sac. 5191cl0, pp. 53 and 54.)
Approval of agreement; notice to participating associations.
If the State Examiner, or the Banking Board on appeal, approves
the agreement or modified agreement, an endorsement to this effect must he
made on the duplicate of the agreement held by the State Examiner, "and
each of the associations-shall " e immediately notified of such approval."
b
(Supp. to 1913 Comp. Laws, sec. 5191cll; Banking Law Pamphlet, 1929, sec.
5191cll, p. 54.)
After notice of approval, petition for decree of consolidation or merger
must " e filed with district court.
b
After notice of the ahovo approval has been received by the
participating associations, they must "file in the office of the clerk of
the district court of the county in which a* least one of the associations
is doing business, a petition asking for a decree of consolidation or
merger".




Such petition must set out the "names and location of the new

X=6931
- 138 (North. Dakota - cont'd*)

association, and shall recite briefly the talcing of the several successive
steps hereinbefore provided for and a statement of the amount of the
assets and indebtedness of each of the old associations to be transferred
to and assumed by the new association, the amount of the capital stock,
and the amount thereof to be apportioned to the stockholders of each of
the old associations and the names of the first board of directors of the
new association."

(Supp. to 1913 Comp. Laws, sec. 5191cl2; Banking Law

Pamphlet, 1929, sec. C191cl2, p. 54.)
Notice of filing of petition to be issued by clerk of court; publication of.
When such petition has been filed, the Clerk of the district
court must issue a notice which must set out (1) that the petition has
been filed in his office, (2) that the effect of the consolidation or
merger will be to transfer the principal assets of the petitioning associations to the new association and to create in the latter association a
liability to pay all of the debts of the petitioning associations and to
establish a novation by the petitioning associations, creditors, and the
new association, and (3) that a hearing in tho office of the clerk on the
petition will be held on a specified date. This notice must be signed by
the clerk and attested by the seal of the court and must be published for
a certain length of time "in some newspaper qualified to publish legal
notices in the county in which such petition is filed." Proof of such
publication must be filed with the clerk of the district court. (Supp.
to 1913 Comp. Laws, sec. 5191cl3; Banking Law Pamphlet, 1929, sec. 5191cl3,
p. 55.)




-.••l-33"*>

(Forth Dakota - cont'd;)

Decree of court permitting consolidation or merger.
If no objection has "been made to the petition within twenty
days after its last publication, "the court shall at once upon the showing of the default, make its decree permittir-g the consolidation, or
merger, as the case may he."

(Supp. to 1913

Comp. Laws, sec. 5191cl4;

Banking Law Pamphlet, 1923, sec. 5191cl4, p. 55.)
Opposition to petition; stry of proceedings, bond; deoreo.
Any opposition to the petition made " y any creditor nlll " e
b
b
heard by the court and the only cause for denying the petition "shall he
that the objecting creditor is in danger of being substantially damaged
in his financial rights".

If the creditor establishes this fact, the

court may order the proceedings to bo stayed; but if a bond of indemnity
is given to the creditor to the effect that all of M s legal claims will
be paid by the new association when due "the proceedings shall be considered as though no opposition had been made thereto" and the court shall
accordingly enter its decree permitting the consolidation or merger.
(Supp. to 1913 Comp. Laws, soc. 5191cl5; Banking Law Pamphlet, 1929, sec.
5191cl5, p. 55.)
General offeet of decree.
"The effect of a decree permitting consolidation, or merger,
shall be to bar forever all objections thereto, and to establish a complete
novation between the old associations, and creditors, and the new association to the end that from that t i , henceforth, the old associations are
ire
relieved of all liabilitiy to creditors, all such creditors having a valid
and legal claim against the new association to the full extent that they had




(North Dakota - cont'd.)

a claim against any of the old associations, and the new association is
liable for all indebtedness of all the old associations to the same extent that they were liable, and all of the stockholders' liability, as
stockholders, in the several old associations are merged into their
stockholders• liability as stockholders in the new association."

(Supp.

to 1913 Comp. Laws, sec. 51Slcl6; Banking Law Pamphlet, 1929, sec. 5191cl6,
pp.. 55 and 56.)
Conclusiveness of decree.
The decree of the district court is "final and conclusive, not
subject to appeal, nor to motion to vacate or set aside, and not subject
to be set aside or vacated on motion for a new trial."

(Supp. to 1913

Comp. Laws, sec. 5191cl7; Banking Law Pamphlet, • 19,39, sec. 5191cl7, p. 56.)
Objections, who may make; dissenting stockholders, rights of.
I o stockholder who voted, or refrained from voting, for a
T
consolidation or merger, can object thereto; but any stockholder who voted
against such consolidation or merger, at any time prior to the filing of
the petition in court, may file objection and appear before the State examiner or Banking Board and show cause why the consolidation or merger
should not be allowed, "but the determination of the State Examiner or the
Banking Board shall be conclusive of his rights." Ho action or proceeding
in court can be maintained by any person questioning the validity of the
consolidation or merger, or to recover anything on account thereof, unless such action or proceeding was commenced prior to the time of entry
of the decree of consolidation or merger. The court in which the petition
for consolidation or merger is filed or the appropriate federal court has




(North Dakota - con'tdp

"exclusive jurisdiction of such'action or proceedings."

(Supp, to 1913

Corap. Laws, sec. 5191cl8; Banking Law Pamphlet, 1929, sec. 5191cl8, p.
56.)
»

Decree of merger or consolidation, when necessary to do further acts after;
contents of decree of consolidation; 'filing of certified copy of decree;
issuance of certificate of authority.
When a decree of merger has "been entered, "no further act shall be
necessary to he done, except to make the transfers of tho assets from the
old associations to the association into which they are merged;" hut in
case of a consolidation,

the decree must specify the name and location,

and the amount of capital stock of the nev; association with the proportions
in which it is allotted to each of the old associations.

The decree must

also name the first board of directors, or in case of death or diaability
of any of such directors, "shall substitute another or others to be nominated by the petitioners."
"A certified copy of such decree" with a fee of five dollars
must then be filed in the office of the Secretary of State, "and such new
association shall thereupon become a banking association in all things the
same as though originally organized under the Banking La'js and the Secretary
of State shall thereupon issue to it a certificate of authority, as in the
case of the incorporation of other banking associations, which certificate
should be delivered to the State Examiner to be in turn delivered by him
to the said new association upon its being made to appear to him that all
the terms and conditions of the consolidation have been complied with."
(Supp. to 1913 Conp. Laws, sec. 5191cl9; Banking Law Pamphlet, 1929, sec.
5191cl9, p. 57.)




,
.,.s/.o/-r -

X-6S3>

~*.-l*2*(North Dakota - cont'd.)
Election of officers.
As soon as the certificate of authority has "been delivered to
the directors they must meet and elect officers, and until such election
the directors shall supervise and conduct the business of the new association.

(Supp. to 1913 Comp. Laws, sec. 5191c20; Banking Lav? Pamphlet, .

1929, sec. 5191c-20, p. 57.)
Consolidation or merger, operation of old corporations must cease; officers
and directors to continue; when corporate existence extinguished.
When either a consolidation or merger has "been consummated, "the
old associations shall cease to operate as banking associations or to
transact any "business other than to administer any assets that under the
terms of the consolidation or merger have not "been transferred.

They shall

not elect any new officers or directors, "but the directors and officers
holding at the time of the consolidation or merger shall continue and the
corporation itself shall remain in existence for a period of one (1) year
during which time its remaining assets, if any must " e disposed of, and
b
the proceeds distributed among its stockholders, and at the end of one
year from the filing of ...the,decree of consolidation or merger,, fhe,.sa}4
old associations sha\Dl ' e / t rto "exist, unless'upon good cause shown, and
case
before the expiration of the said period of one (1) year any of said old
associations shall obtain from the court an order extending the time of
their existence, which order shall only be granted upon a showing of a
substantial reason therefor."

(Supp. to 1913 Comp. Lairs, sec. 5l91c21;

Banking Law Pamphlet, 1929, sec. 5191c2l, p. 57.)




---/••••'

3E-5933T

- 143(tTorth Dakota - con'td.)

Statement as to new stock due to old stockholders; proportionment of.
When a consolidation has teen completed, the "board of directors
of each of the old associations mast furnish to the hoard of directors of
the new association a statement of the amount of stodc due to each of the
stockholders of the old associations and the new association must then
issue stock proportioned upon their former holdings to such stockholders.
Provision is also made for the issuance of stock to stockholders where
the amount to which they are entitled does not consist of even multiples
of one hundred dollars.

(Supp. to 1913 Comp. Lars, sec. 5191c22; Banking

Law- Pamphlet, 1929, sec. 5191c22, p. 57.)

Remedial purpose of above provisions; liberal construction required.
fl

The purpose of the Act is remedial, and it is intended to remedy

a well understood condition existing in the banking business of the State
of North Dakota, a part of which condition is the need of larger and
stronger banking institutions, and the supplying of more efficient banking
service, to various communities, and to the ond that such conditions may
be remedied to the utmost extent possible, this Act shall be in all things
liberally construed, for the accomplishment of its ultimate purpose." (Supp.
to 1913 Comp. Laws, sec. 5191c23; Banking Law Pamphlet, 1929, sec. 5191c23,
p. 58.)
Additional authorization for consolidation or merger of banks.
Additional provisions covering the consolidation or merger of
banks, which were enacted in 1927, provide, that "any two or more banks"
with the approval of the State Examiner, may consolidate or merge under
the charter of either existing bank.




The merger or consolidation may be

X-69Sr
y

•

O

•> -••

~

1 £Ki'- Z.

•*

-L -.r

•"

(North Dakota -..cont'd.)
on such terms as may be agreed upon " y the majority of the board of dib
rectors of each "bank, and must " e "ratified and confirmed" at a special
b
meeting by two-thirds of the stockholders of. each bank, llotice of such
meeting must be given to the stockholders "at least ten days prior to
said meeting"; but the stockholders "may unanimously waive such notice,
and may consent to such meeting and consolidation or merger in writing."
(S. L. 1927, ch. 93; Banking Law Pamphlet, 1929, p. 58.)
Capital stock required of consolidated institution.
The capital stock of the "consolidated bank shall not be less
than that required under existing law for the organization of a bank of
the .class of the largest consolidating bank."

(S. L. 1927, ch. 93;

Banking Law.Pamphlet, 1929, p. 58.)
Report of assets and liabilities.
"The assets and liabilities of the consolidated bank shall be
reported by the surviving bank."

(S. L. 1927, ch. 93; Banking Law Pamphlet,

1929, p. 58.)
Legal effect of consolidation or merger under chapter 93 of laws of 1927.
"All the rights, franchises, and interest of said bank so consolidated in and to every species of property, real, personal and mixed
and choses in action thereto belonging, shall be deemed to be transferred
to and vested in such bank into which it is consolidated without other
instrument of transfer, and the said consolidated bank shall hold and
enjoy the same and all rights of property, franchises, and interests in
the same manner and to the same extent as was held and enjoyed by the bank
so consolidated therewith, provided, however, that the merging bank shall




X-68Hr

(North Dakota - cpnt *.&.),
>
transfer to the surviving bank.ail of its real property by good and sufficient deed of conveyance and for that and other purposes shall remain
a "body corporate for a period of at least three years after merger and
shall not then dissolve without the approval of the State Examiner."
(S. L. 1927, ch. 93; Banking Law Pamphlet, 1929, p. 58.)
Additional provisions with reference to legal effect of consolidation or
merger of "corporations, including "banks and trust companies."
Additional legislation enacted in 1927 provides further with
reference to the legal effect of a consolidation or merger that "Whenever
any two or more corporations, including banks and trust companies, organized under the Laws of this State have heretofore consolidated, merged
or otherwise transferred, or shall hereafter consolidate, merge or otherwise transfer, its business to another corporation, including bank or trust
company, organized, or to be organized, under the laws of this State, the
consolidated or new corporation, by whatever name it may assume, or be
known, shall, unless otherwise provided in the agreemont or order of mergor
or consolidation, be a continuation of the entities of each and all of
the corporations, including banks and trust companies, so consolidated,
merged or otherwise transferred to such consolidated or new corporation
for all purposes whatsoever, and all of the rights, franchises and interests
of said corporations, including banks and trust conpanies, so consolidated,
merged or transferred in and to every species of property, real, personal
and mixed and choses in action thereto belonging shall be deemed to be so
transferred to and vested in the corporation which acquires tho same on
such consolidation, merger or other transfer without any assignmont, deed




X-6931.

(tforth Dakota - con'td.)
or other transfer, and such corporation shall hold and enjoy the same
and all rights of property, franchises and interests in the same manner
and to the same extent as was held and enjoyed by the corporation, or
corporations, including hanks and trust companies, so consolidated,
merged or otherwise transferred, including the holding and performing
by any bank or trust company of any and all trusts and fiduciary relations whatsoever as to or for which either or any of the banks or trust
companies so consolidating, merging or otherwise transferring may have
been, or may be appointed, nominated or designated by any will, agreement, conveyance, or otherwise, whether or not audi trust or fiduciary
relation shall have come into being, or shall have taken effect at the
time of such consolidation, merger or other transfer."

(S. L. 1937, ch.

108; Banking Law Pamphlet, 1929, pp. 58 and 59.)

OHIO.

Definition of word "bank".
The term "bank" when used in the following provisions of the laws
of Ohio includes commercial banks, savings banks and trust companies.
(General Code, sec. 710-2; Banking Law Pamphlet, 1928, sec. 710-2, p. 5.)
Consolidation or transfer of assets.
The laws of Ohio provide that "A bank may consolidate with or
transfer its assets and liabilities to another bank".

(General Code,

sec. 710-86; Banking Law Pamphlet, 1928, sec. 710-86, p. 33.)
Proceedings authorizing consolidation or transfer of assets; agreement;
filing of.




Before a consolidation or transfer of assots can bocomo effective,

X~695-l?

(Ohio - cont'd,)

each corporation concerned must file with the superintendent of tanks,
"certified copies of all proceedings had by its directors and stockholders
which such stockholders' proceedings shall set forth that holders of at
lea3t two-thirds of the stock, voted in the affirmative on the proposition
of consolidation or transfer." The stockholders' proceedings must'also
contain a complete copy of the agreement for consolidation or transfer of
assets which was entered into " y the corporations involved.
b

(General Code,

sec. 710-86; Banking Law Pamphlot, 1928, sec. 710-86, p. 33.)
Consent of commissioner of "banks necessary to consolidation or transfer;
appeal from adverse decision of; examination of corporations involved;
publication of notice of consolidation or transfer.
When the stockholders' and directors' proceedings have been filed
as above prescribed, the superintendent of banks must make an examination
of each corporation "to determine whether the interests of the depositors
and creditors and stockholders of each bank arc protoctod and that such
consolidation or transfer is made for legitimate purposes." No consolidation or transfer can be made without the consent of t * superintendent of
:e
banks and his consent or rejection must be based upon the examination
above referred to.

If he refuses to give his consent, an appeal may be

taken in the manner as is provided in the case of a refusal by the superintendent to certify that a new bank may commence business. Expenses of
such examination must be paid by the corporations examined, and notice of
the consolidation or merger "shall be published for four weeks, before or
after the same is to become effective, at the discretion of the superintendent of banks, in a newspaper published in a city, village or county,
in which each of such banks is located, and a cortificd copy thereof shall




X-6931-.
—14S (Ohio - cont'd.)

" e filed with the superintendent of hanks."
b

(General Code, sec. 710-86;

Banking Law Pamphlet, 1928, sec. 710-86, p. 33.)
Rights of creditors.
"In case of either transfer or consolidation, the rights of
creditors shall he preserved unimpaired and the respective companies deemed
to he in existence, to preserve such rights."

(General Code, sec. 710-87;

Banking Law Pamphlet, 1928, sec. 710-87, p. 33.)
Legal effect of consolidation.
"In case of consolidation, when the agreement of consolidation
is made and a duly certified copy thereof is filed in the office of the
secretary of state, together with a certified copy of the approval of
the superintendent of hanks to such consolidation, the hanks, parties
thereto, shall he held to he one compa.ny possessed of the rights, privileges,
powers and franchises of the several companies, hut subject to all provisions
of law relating to the different departments of its "business. The directors and other officers named in the agreement of consolidation shall serve
until the first annual election, tho date for which shall " e named in the
b
agreement. On filing such agreement all and singular the property and
rights of every kind of the several companies, including the exclusive
right in and to the corporate name of each of the hanks parties to such
agreement shall therehy he transferred to and vested in such new company,
and he as fully, its property as they were of the companies parties to such
agreement. The secretary of state shall not file or record any articles
of incorporation of any company organized to do the "business of a hank,
a "building and loan association, or a mortgage or investment company, within the county within which said consolidated hank is situated, if such name,




149 •«
>
(Ohio - cont'd.)

or tho distinguishing part thereof, is that of any bank party to such
agreement, or so similar thereto as to he likely to mislead the public,
unless the written consent of the consolidated bank, signed by its
president and secretary, be filed with such articles."

(General

Code, sec. 710-88; Banking Law Pamphlet, 1928, sec. 710-88, pp. 33,
and 34.)

OKLAHOMA.

No provisions covering consolidation, merger, etc.
The laws of Oklahoma do not contain any provisions having
specific reference to the consolidation, merger, etc., of banks and
trust companies.

OREGON.

Consolidation of bank or trust cjnrpanyr transfer of assets and liabilities
including trusts and fiduciary business.
The laws of Oregon provide that if two-thirds of its stockholders vote to do so, "any bank or trust company may consolidate
with any other bank or trust company doing business under the laws
of this state or under the laws of the United States". The written
consent of the superintendent of banks is al30 nocessary to such consolidation and it must be "upon such terms and conditions as he
shall require and not otherwise". Ar,y such bank or trust company




/,-•>.

X-6231-

_'"150"(Oregon - cont'd.)

may transfer its assets and liabilities, including its trusts end
fiduciary business, to the proposed successor corporation; but if
any trust or fiduciary business is transferred, the latter corporation must have at the time of the transfer authority from the superintendent of banks to do a trust business.

When the superintendent

is satisfied that the consolidation "has been completed and is effective he shall furnish the successor corporation a certificate bearing
the seal of the state banking department to the effect that such consolidation has taken place and is effective".

Provision is made for

the recordation of this certificate and it "shall be prima facie
evidence that such consolidation has been made and is effective".
(Oregon Code, 1930, sec. 22-1703, as amended by General Laws, 1931,
ch. 278, sec. 25, p. 466.)
The Oregon laws also provide that any bank or trust company
in the process of voluntary liquidation may sell or transfer its
deposit liabilities or its trust and fiduciary business to some
other bank or trust company by a resolution of its board of directors
authorizing such sale or transfer, and surrender its certificate of
authority to the superintendent of banks; but no such sale or transfer can be made without first having obtained the written approval
and consent of the superintendent of banks,, and then only upon such
terms and conditions as he shall require.

The purchasing corporation

to which any trust or fiduciary business is transferred must have at
the time of such transfer authority from the superintendent of banks




(Oregon - cont'd.)

to do a trust 'business. When the superintendent is satisfied, that
the sale or transfer has been completed and is effective, "ho shall
furnish the purchasing corporation with a certificate "bearing the seal
of the state banking department to the effoct that such sale or.transfer has taken place and is effective". Provision is made for the recordation of this certificate and it "shall bo prima facie evidence
that such sale or transfer has been made and is effective".

(Oregon

Code, 1930, sec. 22-1702, as amended by General Laws, 1931, ch. 278,
sec. 24, p. 455.)
Legal effect of sale of assets or consolidation.
If any bank or trust company soil's all or any of its assots to
another bank or trust company which takes over and assumes its deposit
liabilities, "such corporation may not thereafter engage in the banking or
trust business and shall amend its articles of incorporation by eliminating
therefrom the power to engage in a banking and/or trust business or shall bo
and is dissolved, except for the purpose of winding up its affairs, and shall
not thereafter be reinstated and shall' surrender its charter.

If any bank

or trust company shall consolidate with another bank or trust company one of
the corporations shall be dissolved., except for the purpose of winding up its
affairs, and shall not thereafter be reinstated and shall surrender its
charter."

(General Laws of 1925, ch. 207, sec. 178, as amended by General

Laws of 1929, ch. 380, sec. 40(b), p. 483.)
PMSTSYLYMIA.
Merger of State banks and trust companies.
The general corporation laws of Pennsylvania provide that any State
corporation may




X=693i-

(Pennsylvania - cont'd.)

"merge its corporate rights, franchises, powers, and privileges with and
into those of any other corporation or corporations transacting the same
or a similar line of business, so that " y virtue of this act such corb
porations may consolidate, and so that all the property, rights, franchises,
and privileges then " y law vested in either of such corporations, so merged,
b
shall " e transferred to, and vested in the corporation into which such
b
merger shall he made."

(Act of May 3, 1909, P. L. 408, sec. 1; Banking

Laws, 1930, sec. 496, p. 269.)
Procedure for merger; agreement of directors, conditions and contents of;
approval of stockholders necessary to sake effective.
The directors of each corporation are required to enter into a
joint agreement, under the corporate seal of each corporation, for the
merger and consolidation of such corporations. The agreement must prescribe the terms and conditions of the merger or consolidation, the mode
of carrying it into effect, the name of the new corporation, tho number,
names and residences of its directors and other officers, who shall he the
first directors and officers, the number and amount or par value of shares
of the capital stock, and tho manner of oonverting the capital stock of each
of such corporations into the stock of the new corporation. The agreement
must also set out how and when directors and officers shall he chosen, with
such other details as shall he deemed necessary to perfect the consolidation
and merger; hut the agreement does not become effective unless it is
approved by the stockholders of such corporations, in the manner hereinafter
set forth.

(Act of May 3, 1909, P. L. 408, sec. 2; Banking Laws, 1930,

sec. 497, pp. 269 and 270.)




X-S9SU

(Pennsylvania - c o n t ' d . )
*

Submission of agreement to stockholders; vhen deemed to "be act of
consolidation.
The agreement mast be submitted at a special, or any animal,
meeting of the stockholders of each of the corporations involved, and
advance notice of the time, place and object of such meeting must he
given in certain designated newspapers. If a majority of the entire
stock of each corporation votes in favor of the agreement, merger and
consolidation, then that fact must he certified under corporate seal
by the secretary of each corporation. These certificates, together
with the agreement, or a copy thereof, must be filed in the office of
the Secretary of the Commonwealth, xrho shall forthwith present the same
to the Governor for his approval. When approved by the Governor such
agreement "shall be deemed and taken to be the act of consolidation of
said corporation."

(Act of May 3, 1909, P. L. 408, sec. 2; Banking Laws,

1930, sec. 498, p. 270.)
Certified copy of agreement and secretary^ certificate as evidence of
merger.
A certified copy of the certificate of the secretary of each
of the consolidating corporations that the directors* agreement, merger
and consolidation has been approved as aforesaid, and the agreement itself, or a copy thereof, filed in the office of the Secretary of the
State, is evidence of the lawful holding and action of such stockholders'
meetings, and of the merger and consolidation of the corporations.

(Act

of May 3, 1909, P. L. 408, sec. 4; Banking Laws, 1930, sec. 500, p. 272.)
Legal effect of merger; issue of "new letters patent"; payment of bonus.




Upon the filing of the papers as above described "and upon the

(Pennsylvania - cont'd.)

issuing of new letters patent thereon " y the Governor, the said merger
b
shall he deemed to have taken place, and the said corporations to he one
corporation under the name adopted in and by said agreement, possessing
all the rights, privileges, and franchises theretofore vested in each of
them, and all the estate and property, real and personal, and rights of
action of each of said corporations, shall he deemed and taken to he
transferred to and vested in the said new corporation without any further
act or deed: Provided, That all rights of creditors and all liens upon
the property of each of said corporations shall continue unimpaired,
limited in lien to the property affected hy such liens at the time of
the creation of the same, and the respective constituent corporations may
he deemed to " e in existence to preserve the same; and all debts not of
b
record, duties, and liabilities of each of said constituent corporations
shall thenceforth attach to the said new corporation, and may be enforced
against it to the same extent and by the same process as if said debts,
duties, and liabilities had been contracted by it." Such merger is not
complete, however, and no business of any kind may be transacted until
the consolidated corporation has obtained from the Governor new letters
patent and has paid to the State Treasurer a certain prescribed bonus upon
its capital stock, in excess of the amount of the capital stock of the
consolidating corporations. New letters patent can not be issued until
each of the consolidating corporations has filed with the Secretary of the
Commonwealth a certificate from the Department of Revenue, setting forth
that all reports required by the Department of Revenue have been duly
filed, and that all State taxes due have been paid, up to and including




(Pennsylvania- cont'd.)
the date of the proposed merger.

(Act of i«ay 3, 1909, P. L. 408, sec. 3,

as amended by Act of April 29, 1915, P. L. 205; Banking Laws, 1930, sec.
499, pp. 271 and 272.)
Dissenting stockholders; rights of.
The laws of Pennsylvania also contain detailed provisions granting to stockholders in any of the -consolidating corporations, who have
voted against the consolidation and who "shall " e dissatisfied with or
o
object to such consolidation", the right within a certain prescribed
time and -upon compliance with a certain prescribed procedure, to be paid
for the stock held by them.

(Act of May 3, 1909, P. L. 408, sec. 5;

Banking Laws, 1930, sec. 501, p. 273.)
Trust estate and property specifically transferred to and vested in
consolidated corporation; obligations, duties and liabilities assumed;
substitution of trustees.
Whenever a State bank exercising trust powers, or a trust company, merges or consolidates with another such bank or trust company
"all the estate and property, real and personal, held by either of such
merging corporations in any trust or fiduciary capacity shall be deemed
and taken to be transferred to and vested in the consolidated corporation
without any further act or deed or any order or decree of any court or
other tribunal, and the consolidated corporation shall have and hold
the same as fully as the same was possessed and held by the constituent
corporations from which it was, "by operation.of the provisions of this
act, transferred; and said consolidated corporation shall succeed to all the
relations, obligations, and liabilities, and shall execute and perform all




.AT* JJOi.

/ ,>•

>.. I F > 6 . *
(Pennsylvania- cont'd.)
the trusts and duties devolving upon it in the same manner as though it
had itself assumed the relation or trust".

(Act of May 9, 1923, P. L.

174, sec. 1; Banking Laws, 1930, sec. 502, p. 274.)

If within thirty

days after notice to any person or corporation interested in any trust
involved in the consolidation, such person or corporation files a written
objection\with the consolidated corporation and applies to the court
having jurisdiction of the trust estate for the appointment of a substituted trustee or other fiduciary, such court may appoint another
trustee or fiduciary and may "order said consolidated corporation forthwith to file an account of such trust estate and to pay over and transfer the assets




3&-693-1-

(Pennsylvania - cont'd.)

and property thereof to the substituted trustee or fiduciary so

appointed."

(Act of May 9, 1923, P. L. 174, sec. 1; Banking Laws, 1930, tec. 503, p.
275.)
Succession of consolidated corporation to appointments of consolidating
corporations.
In all cases where a State hank or trust company or a national
hank located in Pennsylvania "has "been heretofore, or shall hereafter he,
named or appointed executor, guardian, trustee, or to any other fiduciary
capacity, hy or in any will, deed or other instrument, such nomination or
appointment shall not he deemed to have lapsed hy reason of the merger
or consolidation of such company with another trust company or hanking
company, incorporated under any general or special law of this Commonwealth,
or under any law of the United States, and located in this Commonwealth,
where such merged or consolidated company is possessed of fiduciary powers,
hut such merged or consolidated company shall he entitled to act in the
same fiduciary capacity under such instrument as the constituent company
could have acted if no

such merger or consolidation had heen effected."

(Act of April 26, 1929, P. L. 839, No. 365; Banking Laws, 1930, sec. 505,
p. 276.)
Validation of exercise of fiduciary powers hy consolidated corporation* '
Wherever a State trust company or hanking company, possessed of
trust powers, or a national hanking company located in Pennsylvania, formed
hy a merger or consolidation of two or more trust companies, or State
hanks or national hanks, or hoth, "has heretofore heen granted letters
testamentary, or has heretofore assumed any fiduciary relationship, and




^-168—
(Pennsylvania - cont'd.

has heretofore performed.any acts pursuant thereto, under the terras
of any instrument naming or appointing one of such constituent conpanics to any fiduciary capacity, such grant of letters, and all relationships of any fiduciary nature heretofore assumed, and all acts
heretofore performed pursuant thereto by such merged or consolidated
company, shall be taken to be as valid and effectual for all purposes
as if such letters had been granted to, and such relationships had
been assumed and acts performed by, the constituent company."

(Act

of Aoril 26, 1929, P. L. 839, No. 365; Banking Laws, 1930, sec. 504,
p. 275*)

Merger of national bank with State bank or trust company; definition of
termrtState bank",




Iho laws of Pennsylvania provide that the term "State Bank" as

(Pennsylvania -. cont'd.)

used in the following provisions, "shall mean a bank, trust company, or
bank and trust company, organized under the laws of this Commonwealth.fl
(Act of April 16, 1929, P. L. 522, sec. 1; Banking Laws, 1930, sec. 506,
p. 277.)
Authority for merger of national bank with State bank or trust company.
Any national bank located in the State of Pennsylvania "may be
merged and consolidated with any state bank, under the charter of such
state bank, on such terms and conditions as may be lawfully agreed upon
by a majority of the board of directors of the national banking association and of the state bank to be merged and consolidated".

(Act of April

16, 1929, P. L. 522, sec. 2; Banking Laws, 1930, sec. 507, p. 278.)
Confirmation of agreement by stockholders; notice of meeting.
Before the directors' agreement-for merger and consolidation
becomes effective, it must be ratified and confirmed by two-thirds of the
stockholders of each of the merging corporations at a meeting called by the
directors, after publishing notice of the time, place and object of the
meeting for two weeks in certain designated newspapers. A copy of such
notico must also bo sent to each shareholder at least two weeks prior to
the day fixed for such meeting. Where notice of such meeting is waived
in writing by all of the stockholders, the advertisements and personal
notices above provided for are not required,

(Act of April 16, 1929,

P. L. 522, sec. 3; Banking Laws, 1930, sec. 508, p. 278.)
Capital stock of resulting corporation.




"The capital stock of the merged and consolidated state bank

—1.6&(Pennsylvania - cont'd.)

shall not be less than that required for such institutions under the laws
of the Commonwealth."

(Act of April 16, 1959, P. L. 522, sec. 4; Banking

Laws, 1930, sec. 509, p. 279.)
Compliance with laws of United States; approval of merger a^eement " y
b
Secretary of Banking.
The merger and consolidation must not " e in contravention of the
b
laws of the United States and does not become effective until the national
bank has fully complied with the laws of the United States relating to
the merger of national banks with State banks or providing for their
liquidation or the shares thereof, "nor until the agreement entered into
by the boards of directors of the institutions so merging and consolidating
and ratified by the sharehplders as before provided has been submitted to
and approved by tho Secretary of Banking".

(Act of April IS, 1929, P. L.

522, sec. 5; Banking Laws, 1930, sec. 510," p. 279.)
Dissenting shareholders, rights of.
After the completion of the merger, any shareholder of the
merging corporations "who has not voted for such merger and consolidation"
may give notice within a certain prescribed time that he dissents from the
merger and is then entitled to receive the value of the shares held by him.
Detailed provision is also made for the appraisal, payment and disposition
of the shares held by such dissenting stockholder.

(Act of April 16, 1929,

Pi L; 522, sec. 6; Banking Laws, 1930, sees. 511 and 512, pp. 279 and 280.)
Legal effect of merger.
"All the rights, franchises, and interests of such national
banking association, so merged and consolidated with a state bank, in and




*• - 1 6 1 — -

(Pennsylvania - cont'd.)

to every species of property, real, personal and mixed, and choses in
action thereto belonging, shall he deemed to he transferred to and vested
in such state hank into which it was merged and consolidated, without any
deed or other transfer; and the said merged and consolidated state hank
shall hold and enjoy the same, and all rights or property, franchises and
interests, including the right of succession as trustee, executor or in
any tother fiduciary capacity, if qualified by its charter under tho laws
of this Commonwealth, in tho same manner and to tho same extent as was
hold and enjoyed by such national banking association".

(Act of April

16, 1929, P.L. 522, soc. 7; Banking Laws, 1930, soc. 513, p. 280.)

Salo, assignment, o t c , of franchises and property by one trust company
to another.
The laws of this Stato also contain what is known as tho ttShort
Mcrgor Act". This act makes it lawful, among other things, for ono trust
company to sell, assign, dispose of and convoy its franchises and property
to another trust company, tho pertinent provisions providing as follows:




tt

Any corporation croatod under tho. provisions of this

act (the creation of banks not being provided for thereunder),
and any corporation of tho classes named in tho socond section
hereof, (trust companies, i. o., title insurance companies
which have accepted tho provisions of subsequent supplementary
acts giving them trust powors), that is now in existence by
virtue of any law of this Commonwoalth, may reduce its capital
stock or alter and chango tho par valuo of the sharos thoroof,

(Pennsylvania - cont'd.)
" y a vote of the stockholders token in the manner and tinder
b
the regulations prescribed in the eighteenth, nineteenth,
twentieth, twenty-first and twenty-second sections of this
act; and it shall he lawful for any corporation in the same
manner to sell, assign, dispose of and convey to any corporation created under or accepting the provisions of this
act, its franchises, and all its property, real, personal
and mixed, and thereafter such corporation shall cease to
exist, and the said property and franchises not inconsistent
with this act, shall thereafter he vested in the corporation
so purchasing as aforesaid: * * *"(Act of April 29, 1874, P.L.
73, sec. 23, as amended by Act of April 17, 1876, P. L. 30,
sec. 5, and Act of Juno 2, 1915, P.L. 724, No. 333; Banking
Laws, 1930, see. 272, p. 153.)

BHODB ISLAND.

Sale, lease or exchange of assets; no provisions covering consolidation
or merger.
The laws of Ehode Island do not contain any provisions having specific reference to the consolidation or merger of honks or trust

companies,

Tho laws do provido that "Every hank, savings hank, and trust company * * *
shall have all tho powers, rights, and privileges, and ho subjoct to all
tho duties, restrictions and liabilities, set forth in chapter two hundred
and forty-eight so far only as is not repugnant to or inconsistent with
the provisions of this title."

(General Laws of 1923, ch. 271, sec. 1.);

and chapter 248, (Section 55), as amended by P.L. 1927, ch. 1008, empowers
a corporation to sell, lease or exchango all or substantially all of its
assets and proporty, including good will "upon such terms and conditions as




,, r

£=6931-

'»Sr—163 ~

(Khodo Island - cont'd.)
it deems expedient" if the holdors of two-thirds of each class of its
capital stock o\itstanding vote thorefor, -unless a higher proportion of
affirmative votos is required by tho articles of association. Section
56 of tho some chapter outlines the procedure as to dissenting stockholders in such a case.
SOUTH CAROLINA..
Consolidation of State "banks and trust companies with national banks and
other State "banks and trust companies.
With specific reference to banks and trust companies, the State
of South Carolina, in an act approved April 7, 1930, provides that any
State bank or trust company "may bo morged or consolidated with tmy national
banking association or associations under tho charter of such national banking association or under a now chartor issued as may bo lawfully agreod
upon," or such bank or trust company "may bo morged with or consolidated"




(South Carolina - cont'd.)
with any other State hank or trust company, "provided that the laws of
South Carolina governing the consolidation of State hanks and trust
companies shall first he complied with as to the consolidation of such
hanks or trust companies."

(Act approved April 7, 1930, sec. 1.) The

laws further provide that "All acts or parts of acts in conflict with
this act are herehy repealed."

(Act approved April 7, 1930, sec. 2.)

general legal effect of consolidation of hanks and trust companies under
provisions of act approved April 7, 1930.
When a consolidation under the provisions of the act approved
April 7, 1930, "shall have "been effected and approved as provided hy law,
all the right, franchises and interests of such hank or trust company so
consolidated with the national hanking association or national hanking
associations, or state hank or trust company, in and to every species
of property, real, personal, and mixed, and choses in action thereto
"belonging, shall " e deemed to te transferred to and vested in such national
b
hanking association, or in such state hank or trust company into which it
is consolidated, without any deed or other transfer, and the said consolidated national hanking association or consolidated state hank or trust
company shall hold and enjoy the same and all rights of property, franchises, and interests, or in any other fiduciary capacity in the same
manner, and to the same extent, as was held and enjoyed hy such tank or
trust company so consolidated.

In case of such consolidation the rights

of creditors of such hank or trust company shall he preserved unimpaired
and all lawful dehts and liahilities of such hank or trust company shall
he deemed to have heon assumed hy such consolidated national hanking




-r-i-ej>-=(South Carolina - cont'd.)

association and such consolidated state "bank or trust company."

(Act

approved April 7, 1930, sec. 1.)
Legal effect of merger or consolidation of trust companies on trust
powers and property.
"When any trust company organized under the laws of this State
shall have been appointed executor of the last will of any deceased
person, or administrator, with or without the will-annexed, of the estate of any deceased person, or as guardian, trustee, receiver, assignee,
or in any other fiduciary capacity, if such trust company has heretofore
merged or consolidated with or shall hereafter merge or consolidate with
any other trust company organized under the laws of this State, then, at
the option of said first-mentioned company and upon the filing " y it with
b
the court having jurisdiction of the estate "being administered, of a
certificate of such merger or consolidation, together with a statement
that such other trust company is to thereafter administer the estate held
by it and an acceptance by said latter trust company of the trust to be
administered, such certificate, statement and acceptance to be execv-ted by
the president or vice-president of said respective companies and to have
affixed thereto the corporate seals of said respective companies, attested
by the secretary thereof, and further upon the approval of said court, all
the rights, privileges, title and interest in and to all property of
whatever kind, whether real, personal or mixed, and things in action, belonging to said trust estate, and every right, privilege or asset of conceivable value or benefit then existing which would inure to said estate
under and unmergod or unconsolidated existence of said first mentioned
company, shall be fully and finally and without right or reversion trans-




£-6931-166*

(South Carolina - cont'd.)

fcrrod to and vested in the corporation into which it shall have "been
merged or with which it shall have "been consolidated, without further
act or deed, and such last-mentioned corporation shall have and hold the
same in' its own right as fully as the same was possessed and held by the
corporation from which it was, " y operation of the provisions of this
b
section, transferred, and said corporation shall succeed to all the
relations, obligations and liabilities, and shall execute and perform all
the trusts and obligations devolving upon it, in the same manner as though
it had itself assumed the relation or trust."

(Code of 1922, ch. XI, sec.

10(6); Banking I#w Pamphlet, 1928, sec. 10(6), p. 118.)
Certain provisions of act covering consolidation of corporations in
general also apparently applicable.
Other than the provisions set forth above, the laws of South
Carolina contain no further provisions specifically covering the merger
of consolidation of banks and trust companies. These laws, however, contain rather elaborate provisions covering the consolidation of corporations
in general (Act approved April 14, 1925); and because the above digested
provisions of the act approved April 7, 1930, require consolidating banks
and trust companies to comply with the "laws of South Carolina governing
the consolidation of State banks and trust companies", and, particularly,
because none of the provisions above digested! prescribes the machinery
for effecting a consolidation or covers the matter of a consolidation
in as elaborate a manner as the act approved April 14, 1925, it would
seem that the provisions of the latter act are the "laws of South Carolina"
referred to in the act approved April 7, 1930, and that, therefore, such




X-6931-

(South Carolina - cont'd.)

provisions are also applicable, wherever they may be made so, to the
consolidation of hanks and trust companies.
The act approved April 14, 1925, except in some few irrelevant
cases, specifically authorizes any two or more corporations to ."consolidate into a single corporation which may he either one of said consolidated
corporations or a new corporation."

(Section 1.)

This provision and

other provisions prescribing in detail the procedure for effecting a
consolidation and defining the powers, duties, rights and liabilities of
the consolidated corporation are digested below.
Agreement for consolidation of corporations in general.
All or a majority of the directors of the corporations desiring
to consolidate "may enter into an agreement "signed by them under the
corporate seals of the respective corporations, prescribing the terms
and conditions of consolidation, the mode of carrying the same into effect
and the manner and basis of converting the shares of each of the old
corporations into the new corporation, with such other details and provisions as are deemed necessary or desirable."

(Act approved April 14, 1925,

No. 169, sec. 1.)
Agreement must be submitted to stockholders; notice of meeting; approval
or rejection of agreement; certification of agreement to Secretary of
State; recording of; chartor fees.
The consolidation agreement must be.submitted to a special
meeting of the stockholders of each of the corporations involved, and advance notice of the time, place and object of such meeting must be given
by publication at least once a week for four consecutive weeks in one or




_ /-/;U —
-.166**

X=69Sl-»

(South Carolina - cont'd.)

more newspapers published in the''comity in which each corporation either
has its principal office or conducts its business. A copy of such notice
must also he mailed to each stockholder at least twenty days prior to
the meeting. At such meeting, if a majority of the stockholders of each
corporation vote to adopt the agreement, that fact must he certified
under corporate seal on the agreement " y the secretary of each corporation.
b
Such certified agreement must then be signed under corporate seal by the
president or vice-president and secretary or assistant secretary of each
of the corporations and acknowledged under oath by such president or vicepresident" to be the act, deed, and agreement of each of said corporations,
respectively, and the agreement so certified and acknowledged shall be
filed in the office of the Secretary of State and shall thereupon be taken
and deemed to be the agreement and act of consolidation of the said corporations". A copy of the agreement and act of consolidation, certified
by the Secretary of State under the seal of M s office, must also be recorded
with tha Clerk of the Court of the county in -which the principal office of the
consolidated corporation is or is to bo established, and with the Clerks
of the Courts of the counties where the original charters of the consolidating corporations have been recorded.

If any of the corporations have

been created by a special act of the General Assembly the agreement must
be recorded in the county where such corporation had its principal office.
Such record, or a certified copy thereof is "evidence of the existence of
the corporation created by the said agreement and of the observance and
performance of all antecedent acts and conditions necessary to the creation
thereof: Provided, That the Secretary of State shall collect charter foes
as now fixed by law for granting new charters on their having the total




— '7<>/

(South Carolina - cont'd.)
capital stock of the consolidated corporation".

(Act approved April 14,

1925, No. 169, sec. 1.)
Legal effect of consolidation under provisions of act approved April 14, 1935.
When the agreement is signed, acknowledged, filed and recorded,
"the separate existence of the constituent corporations shall cease, and the
consolidating corporations shall become a single corporation in accordance
with the said agreement, possessing all the rights, privileges, powers and
franchises, as well of a public as of a private nature, and being subject to
all the restrictions, disabilities and duties of each of such corporations
so consolidated, and all and single, the rights, privileges, powers and
franchises of each of said corporations: Provided, however, where there is
a right enjoyed by one corporation and a restriction as to the same matter
enjoined on the other or either of the others, the latter shall prevail;
and all property, real, personal and mixed, and all debts due on whatever
act, and all other things, action or belonging to each of such corporations
shall be vested in the consolidated corporation; and all property, rights,
privileges, powers and franchises, and all and every other interest shall
be thereafter as effectually the property of the consolidated corporation
as they were of the several and respective former corporations, and the
title to any real estate, whether by deed oi* otherwise, under the laws of
this State, vested in either of such corporations, shall not revert or be
in any way impaired by reason of this Act; provided, that all rights of
creditors and all liens upon the property of either of said former corporations shall be preserved

unimpaired, limited in lien to the property af-

fected by such liens at the time of the consolidation, and all debts, liabilities and duties of the respective former corporations shall thenceforth




(South Carolina - conttd.)
attach to said consolidated corporation, and may be enforced against it to
the same extent as if said debts, liabilities and duties had "been incurred
or contracted by it."

(Act approved April 14, 1925, No. 169, sec. 2.)

Dissenting stockholders, rights of.
If any stockholder in the consolidating corporation, entitled to
vote, votes against the consolidation, or if any stockholder not entitled to
vote, at or prior to the taking of the vote, objects thereto in writing,
and, within twenty days after the consolidation agreement has been filed
and recorded, demands payment of the stock held by him, the consolidated
corporation "shall within thirty days thereafter pay to him the value of the
stock at tho time of the consolidation". Detailed provision is made for




r~'-/33 -171-

X-6931-

(South Carolina - cont'd.)

the appointment of appraisers to appraise the value of the stock in case
of disagreement as to its value.

Stockholders who do not vote against or

object to the consolidation as set forth above, cease to he stockholders
in the constituent corporations and are deemed to have assented to the
consolidation.

(Act approved April 14, 1925, Ho. 169, sec. 3.)

Actions pending.
"Any action or proceeding pending by or against either of the
corporations consolidated may he prosecuted to judgment, as if such consolidation had not taken place or the new corporation may be substituted in
its place."

(Act approved April 14, 1925, No. 169, sec. 4.)

Certain liabilities and rights not affected by consolidation.
The liability of corporations, "or of the stockholders or officers
thereof, or the rights or remedies of the'creditors thereof or of persons
doing or transacting business therewith, shall not in any way be impaired
or diminished by the consolidation of two or .more such corporations under
the provisions thereof."

(Act approved April 14, 1925, Ho. 169, sec. 5.)

Bond and stock issues by consolidated corporations.
When two or more corporations are consolidated, the consolidated
corporation, subject to State laws, may issue bonds or other obligations
with or without coupons or interest certificates attached, to an amount
sufficient with its capital stock to provide for all the payments it will
be required to make or obligations it w,ill be required to assume, in order
to effect such consolidation.

To secure the payment of such bonds and

obligations it may mortgage the corporate franchise, rights, privileges
and property.




The consolidated corporation may also issue capital stock

^/.O-r-

JC-6933,

(South Carolina - cont'd.)

to such amount as may " e necessary, to the stockholders of such consolib
dated corporation in exchange or payment in whole or in part for the
original shares in the manner and on the terms specified in the agreement
of consolidation.

(Act approved April 14, 1925, No. 169, sec. 6.)

Matters prohibited " y certain sections of laws not validated.
b
"Ho consolidation or merger under the terms of this Act shall
render valid any matter or thing declared unlawful under any provisions
of Article XIV, Section 3530-3554, Volume 3, Code of Laws of South Carolina,
1922, relating to Trusts, Pools and Monopolies, or any amendment thereof
now effective or hereafter adopted, and no consolidation or merger under
the provisions of this Act shall he deemed to he lawfully accomplished if
in contravention of any provision of Article XIV, Sections 3530-3554, Vol.
3, Code of Laws of South Carolina, 1922, relating to Trusts, Pools and
Monopolies, or any amendment thereof now effective or hereafter adopted,
every provision of which shall remain in full force and effect after the
passage of this Act and shall in no respect " e impaired thereby".
b

(Act

approved April 14, 1925, ITo. 169, sec. 6a.)

SOUTH DAKOTA.

Consolidation of hanks.
The laws of South Dakota provide that a State hank ffwhich is in
good faith liquidating its business, may for such purpose consolidate with
some other hank in the same city or town by transferring its resources
and liabilities to such bank with which it is in process of consolidation,
but no consolidation shall be made without due notice in writing of such




_'/v^'~-

X-6931

(South Dakota - cont'd.)

intention, to the superintendent of hanks, and not then until a thorough
examination has "been made by him and his consent in writing obtained;
provided, that in no case may any "bank consolidate for the purpose of
defrauding or delaying any of its creditors."

(Laws of 1909, ch. 222,

art. 2, sec. 24, as amended hy Laws of 1915, ch. 102, art. 2, sec. 27;
South Dakota Rev. Code of 1919, sec. 8974; Banking Law Pamphlet, 1927,
sec. 8974, p. 24.)
Consolidation of trust companies.
Any trust company "which is in good faith liquidating its
business for the purpose of consolidating with some other like corporation
may transfer its assets and liabilities to the corporation with which it
is in the process of consolidation; but no such consolidation of corporations shall be made without the consent of the superintendent of banks,
and not then to delay or defraud any of the creditors of either corporation."

(Laws of 1911, ch. 255'; South Dakota 2ev.

Cede of 1919, sec. 9061;

Banking Law Pamphlet, 1937, see. 9061, p. 70.)
TEKEESSEE.
Definition of word "ban!;".
The laws of Tennessee provide that the word "bank" as used in
the following provisions, "shall signify, mean, cover and include every
trust company, loan company, mortgage security company, safe deposit
company, receiving money on deposit, and overy individual, firm, corporation, association or company doing a banking, loan or discount business
and receiving monoy on deposit and performing functions of a bank."




.'V-o
-174--

X^6931~

(Tennessee - cont'd.)

(Public Acts of 1913, ch. 20, sec* 44; Banking Law Pamphlet, with amendments to and including 1925* sec, 44, p. '28.)
Consolidation or merger of franks.
No State bank "shall have authority or power to * * * consolidate or merge with any other bank,, except in pursuance of the provisions
of this (1913 teak)

act; * * *M«. (Public Acts of 1913, ch. 20, sec. 23;

Banking Law Pamphlet, with amendments to and including 1923, sec. 23, p. ?1.)
Procedure to merge or consolidate; application, examination, issuance of
certificate by superintendent of banks, filing of.
A written application setting out all of the facts of the merger
or consolidation must be filed with the superintendent of banks by the
bank desiring to merge or consolidate "and before stich * * * merger or
consolidation becomes effective, the Superintendent of Eanks must examine
into the proceedings to * * * the consolidation or merger, and must issue
his certificate in triplicate certifying that the * * * consolidation
or merger has been in pursuance of the requirements of lav/." One of the
certificates must be kept on file in the office of the Superintendent, one
must be filed for record in the office of the Register of Deods, of the
County in which is located the bank's principal place of business, and one
must be filed with the bank. The superintendent "shall issue his certificate, if the requirements of the law have been complied with * * * for
such consolidation or merger,, but shall refuse to issue his certificate
unless the requirements of the law have been complied with; provided,
however, that the capital stock of no bank shall be decreased below the
minimum amount required by law for the incorporation of banks in this
State."




(Public Acts of 1913, ch. 20, sec. 23; Banking Law Pamphlet, with

(Tennessee - cont'd.)

with amendments to and including 1923,. sec. 23-, p » 21.)

TEXAS*

Purchase of assets of another bark.
The laws of Texas do not contain any provisions having specific
reference to the consolidation or merger of "banks or trust companies; "but
they do provide that .ffAry State "bank or hank and trust company which purchases, the assets of any other "bank shall, "before the purchase of the
assets of such other hank, increase its capital to such an anount that
the seme will have the ratio to the total deposits of the bank, the assets
of which it has purchased, as defined and required in.Article 506". (Acts
of 1909, 2nd C. S.; Banking Law Pamphlet, 1929,. Art, 513, p, 44.)

mm.
Consolidation of "banks.
The laws of this state specifically covering banks and.trust
companies do not contain any provisions expressly authorizing the consolidation, merger, etc., of such institutions; but these laws do provide that
"corporations to conduct commercial or savings banks or banks having departments for both such classes of business may be formed under the provisions of chapter 1, of title 19, Compiled Laws of Utah, 1917 (Sections
860-899), respecting corporations for pecuniary profit, and all the
rights, privileges, and powers, and all the duties and obligations, of
such corporations and the officers and stockholders thereof shall be as
provided in said chapter, except as in this chapter otherwise provided;
* *•*.'»




(Comp. Laws of 'Utah,',.1917, Title 19, ch. 6, as amended, sec.

_V^f-

X-6934

(Utah - cont>d,y
979; Banking Law Pamphlet, 1927, sec. 979, p. 6.) "This chapter" does
not provide "otherwise", so it would seem that "commercial or savings
hanks or hanks having departments for both such classes of business"
may consolidate under the following provisions.
Consolidation of corporations.
State corporations "of the same kind, engaged in the same
general business, in the .same vicinity, * * * may consolidate * * *."
(Laws of 1921^ ch. 22, p. 76.)
Stockholders must agree.
The consolidation mcy be "upon such terms and conditions conformable to the law as shall be agreed upon" by a majority of the stockholders of each corporation at a special meeting after notice stating
the time-, place and object of such meeting' has been published at least
thirty days prior thereto in a newspaper in the county in which each
corporation has its principal place of business. (Laws of 1921, ch. 22,
p. 76.)
Consummation of consolidation.
The "consolidation may be effected either by joining two or
more corporations together or by formation of a new corporation under the
laws of this State for the purpose of buying in and taking over and operating
the properties, rights and franchises of the corporation desiring to consolidate." And if by purchase, such purchase may be made at a private
sale or any public judicial sale, "or in the enforcement of mortgages or
liens". If the sale is a so-called private one, it must be approved by at
least a majority of the stockholders of tho selling companies, unless the




(Utah.» cont^d.)
articles of association provide how and " y whose authority it shall he
b
made.

In the latter event, the sale mist " e in accordance with such
b

provision.

If the consolidation is effected " y forming a new corporab

tion to purchase, the articles of association of the new corporation
must contain, in addition to the regular contents, a provision that the
corporation is formed for the purpose of purchasing in and taking over
the properties, rights, privileges, and franchises of such corporations
so desiring to consolidate.

Such articles of association must

" e filed in the office of the Secretary of State, and upon his filing of
b
the articles and issuing a certificate of incorporation to the corpora-:
tion, "the association shall withotit further act be deemed and held to
have heen duly formed and created a corporation with all the powers
specified," that are not inconsistent with'the state constitution or
laws. • If the consolidation is effected " y joining two or more companies
'
b
together, "such consolidation shall " e evidenced by a certificate under
b
the corporate seals of the respective corporations, signed " y the presib
dent and secretary of each, briefly reciting the act or acts sought to
" e accomplished, and describing in a general way, the property sought to
b
te consolidated, together with the name of the corporation thus formed
" y amalgamation or consolidation, with such other provisions as the law
b
may require to " e inserted in the original articles of incorporation, and
b
such others being conformable to law, as may " o deemed necossary to perfect
b
such consolidation".

Ehis certificate must " e filed and recorded in
b

the same manner as original articles of incorporation, and a copy, certified " y the county clerk, must be filed with the secretary of state, "whose
b




_V-T4>

-

*-6931n

-178-*
.(Utah- cont'd.)

certificate shall constitute such consolidated corporations, a new corporation". Any consolidated corporation has the right to work, operate,
and maintain the properties acquired, and all the rights,, pririls^ss,
franchises and powers named in the new articles of incorporation, including those formerly enjoyed " y the original corporations,
b

(Laws of

1921, ch, 22, pp. 76-77.)
Legal effect of consolidation.
"Upon the consummation of such consolidation, all the rights,
privileges, and franchises of each of said consolidating corporations, and
all the property, real and personal, and all subscriptions and debts due
on whatever account-, shall he deemed to he transferred to and vested In
such new corporation without further act or deed; and such consolidation
shall not relieve, the consolidating corporations, or either of them, or
the stockholders, from any liabilities, nor shall it extinguish or limit
any franchise or right; but; all debts, liabilities, and duties of either
of said corporations shall henceforth attach to such new corporation,
and be enforcible against it to the same extent as if incurred or contracted by it." (Comp. Laws of Utah, 1917, Title 19, Ch. 6, Sac, 889.)

VSBMONT.

Sale, lease or exchange of assets.
The banking laws of this State do not contain any provisions
specifically covering the consolidation or merger of banks; but such laws
do provide that "A savings bank or trust company shall not make a sale,




-X-6931-*

-¥¥/(Vermont - cont'd.)
lease or exchange of all of its assets pursuant to the provisions of
section four thousand nine hundred and twenty-six, except with the consent of the hank commissioner given on petition and after, hearing. Such
notice of the hearing shall he given as the commissioner directs". (General Laws, 1917', chi 225, sec* 5351; Banking Law Pamphlet, 1918, sec.
5351, p « 5.) v
;
Section 4926 above referred to provides that "A corporation
having a capital stock and able to meet its liabilities then matured may,
subject to the rights of creditors, sell, lease or exchange all its assets,
including its franchises, to any other corporation authorized to do business
under the laws of this state and to acquiro such assets, for cash, stock
of other corporations or other property.

Such sale, lease or exchange

shall first he authorized by such vote of the stockholders of both corporations as is provided in their articles of association, or, if provision is
not so made therein, then by the vote, at meetings called upon twenty days'
notice for such purpose, of the holders of two-thirds of the-outstanding
stock, of both corporations, or, if the stock is divided into classes., then
by the vote of the holders of two-thirds of each class of outstanding stock
entitled to vote, or, if the purchasing corporation is organizing and issuing stock for the property to bo acquired, than hy the voto, at a mooting
callod upon twenty days' notico for such purpose, of all tho incorporators
of such corporation.

If stock of another corporation is received in full

or part payment, all of such stock must be disposed of within two years
from the time it was acquired. Failure to make such disposition shall he
cause for the. dissolution of the corporation, under the provisions of




X-6931

(Vermont - cont'd.)

section four thousand nine hundred and forty-four. A corporation having
a capital stock and unable to meet its liabilities then matured may,
subject to the rights of creditors, so sell, lease or exchange all its
assets, including its franchises, by the vote of the holders, at a meeting called upon twenty days' notice for such purpose, of the holders of
a majority of the stock represented at such meeting and entitled to
vote."

(General Laws, 1917, Ch. 210, sec. 4936, as amended by Public

Acts, 1919, No. 125.)




-X-6933?

VIRGINIA.

Merger or consolidation of banks.
Any State "bank is authorized to merge or consolidate with another State bank, or national "bank doing "business in Virginia, "upon
compliance with the provisions of sections thirty-eight hundred and
twenty-one, and thirty-eight hundred and twenty-two of the Code of
Virginia relating to mergers or consolidations of corporations, except
that such mergers or consolidations of banks shall be ratified and confirmed by an affirmative vote of the shareholders of each of such banks
owning at least two-thirds of its capital stock outstanding and having
voting power. The provisions of sections thirty-eight hundred and
twenty-three, thirty-eight hundred and twenty-five, and thirty-eight
hundred and twenty-six of the Code of Virginia shall apply to such merged
or consolidated corporation, except as otherwise provided in this act;
* * *.» (Va. Code of 1930, sec. 4149 (10), p. 1047.)
Legal effect of merger or consolidation.
"In the event of any such merger or consolidation, the merged
or consolidated corporation (whether it be one of said merging or consolidating banks, or a new bank, State or national, formed by means of such
merger or consolidation) shall succeed to, and be vested with, without
further act or deed, all offices of trust or of a fiduciary nature with
which any one or more of the banks, parties to such consolidation or merger,
were vested immediately prior to tho time at which such consolidation or




*.:..•/••<*-

X-6S33:

(Virginia - cont'd.)
merger "became effective."

(Va. Code of 1930, Sec. 4149(10), p. 1047)

The sections of the lavrs of Virginia referred to in the provision first above quoted, which " r n s proposing to merge or consolibik
date mast comply with, are digested -under the following captions.
When merger or consolidation may " e effected.
b
Any State corporation "may merge or consolidate into a single
corporation with any other corporation organized for the purpose of
carrying, on the same or a similar "business" under any State or Federal
lav/ "which said consolidated corporation shall upon the payment of a
proper charter fee, thereby "become a domestic corporation of this State
and he subject to its laws, and to the jurisdiction of its courts, and
may be either ono of said merging or consolidating corporations, or a
new corporation to be formed by r - a s of such merger or consolidation,
r3n
and by virtue of this charter, pad the proceedings had pursuant thereto,
such corporation shall be consolidated and merged, so that all property,
rights, franchises, and privileges by law vested in such corporations so
merged or consolidated shall be transferred to and vested in the corporation into which such consolidation or merger shall be made."

(Va. Code

of 1930, sec. 3821, p. 840.)
Agreement of directors to merge or corsolidate«
The board of directors of each of the corporations proposing to
merge or consolidate may under corporate seal enter into a joint agreement
for the merger or consolidation of such corporation. The agreement must
prescribe the terms and conditions of the merger or consolidation, the
mode of carrying it into effect, the name of the resxilting corporation,




_V^~-

X=6931

(Virginia - cont'd.)
the number, names and residences of its "board of directors and principal
officers, the aggregate amount and rate of interest of any of its bonds,
the number and par value of its shares of stock, the manner of converting the stock of its constituents into new stock, and, if a new corporation is created, how and when the directors and principal officers to
succeed those named in the agreement are to he chosen or appointed. The
agreement may also contain such other provisions as the contracting
board of directors deem necessary or convenient to perfect the merger or
consolidation.

(Va. Code of 1930, see. 3822

(a), p. 941.)

Submission of agreement to stockholders and State corporation commission
for approval.
The agreement must " e submitted a - a spscial meeting to the
b
t
stockholders of each of the corporations involved. Notice of the time,
place and ohject of such meeting must he given by publication at least
six times a week for two successive woeks in a certain designated newspaper, and by mailing a copy of such notice at least ten days prior to
such meeting to each stockholder.

If a majority of the votes cast at

each of these meetings he in favor of the agreement, consolidation and
merger, then that fact must be certified by the president or one of the
vice-presidents of the corporation, and attested by each secretary under
corporate seal.

Such certificates, acknowledged by the president or vice-

president signing them and " y the respective secretaries, must he presented
b
to the State corporation commission, which must ascertain and declare
whether the corporations, by complying with the legal requirements, have
entitled themselves to the merger or consolidation.
sec. 3822(b), p. 941.)




(Va. Code of 1930,

X-693i->
^134(Virginia - cont'd.)
Certificate of merger or consolidation, issuance of by State corporation
commission; filing and recordation of; effect of.
If the corporation commission issues a certificate of merger or
consolidation, it and the agreement must " e certified " y tho commission
b
b
to the Secretary of State and recorded in the same manner as an original
certificate of incorporation or articles of association. When so filed
for recordation, "the said merger or consolidation shall he complete and
the merged or consolidated corporation may proceed to carry out the details of said merger and consolidation according to the terms of the
agreement and to transact and carry on the business for which'it was
formed; * * *."

(Va. Code of 1930, sec. 2822(h), p. 941.)

Dissenting stockholders, 'rights of.
Detailed provision is made for the appraisal and payment of the
v'&i'uW 8$ a£o£k heid by a!0 ertoclzholder ititft SM not vote fo!r #&* merger of
consolidation and who dissents to such merger or consolidation r/ithin a
certain prescribed time.

(Va. Code of 1930, sec. 3822, pp. 941-943.)

Effect of merger or consolidation under general corporation law; rights of
former corporations vest in new corporation; rights and liabilities assumed.
"Upon the perfecting, as aforesaid of the said merger or consolidation, the several corporations parties thereto shall be deemed and taken
as one corporation, upon the terms and conditions and subject to the restrictions sot forth in said agreement, and all and singular the rights,
privileges, and franchises of each of said corporations, parties to the
same, except as restricted by law, and all property, real and personal,
and all debts due on whatever account, as well of stock subscriptions as




~-lf35r
(Virginia • cQn^d.)
*
other things in action, "belonging to each of such corporations, shall be
taken and deemed as transferred to and vested in such new corporation
without further act or deed; and all property, all rights of way, and
all and every other interest shall be as effectually the property of the
new corporation as they were of the former corporations parties to the
said agreement; and the title to real estate, either by deed or otherwise,
under, the laws of this State vested in either corporation, shall not he
deemed to revert or " e in any way impaired " y reason of this chapter; "but,
b
b
the rights of creditors and all liens upon the property of either of said
corporations shall he preserved unimpaired; and the respective corporations shall " e deemed to continue in existence to preserve the samo; and
b
all debts, liabilities, and duties of either of said companies shall
thenceforth attach to said new corporation and be enforced against it to
the same extent as if the said debts, liabilities, and duties had been
incurred or contracted by it."

(Va. Code of 1930, sec. 3823, p. 944.)

Suits against new corporation; effect of merger or consolidation on pending
suits.
Suits can be maintained against the new corporation in any of
the courts of Virginia in the same manner as against any other corporation,
and suits pending by or against any of the constituent corporations can be
prosecuted as if a consolidation had nox- taken place or the new corporation
may be substituted as a party.

(Va. Code of 1930, sees. 3825 and 3826,

p. 944.)
TASHIKGTOH.
Transfer of assets for purpose of consolidation.




The laws of Washington provide that "a bank or trust company may

¥4t?~

X-693-1

(Washington - cont'd.)
»
for the purpose of consolidation or voluntary liquidation transfer its
assets and liabilities to another "bank or trust company, "by a vote, or
with the written consent of the stockholders of record owning two-thirds
of its capital stock, hut only with the written consent of the supervisor
of hanking and upon such terms and conditions as he may prescribe."

(Laws

of 1923, p. 312, sec. 12; Rem. 1927 Sup., sec. 3282; Banking Law Pamphlet,
1929, sec. 97, p. 45.)
Certificate of authority and corporate existence, termination of.
When a hank or trust company has transferred all of its assets
and liabilities, or has been liquidated or is no longer engaged in business as a bank or trust company, "the supervisor of banking shall terminate
its certificate of authority, which shall not thereafter be revived or
renewed."

When any such corporation has had its certificate of authority

revoked, "it shall forthwith collect and distribute its remaining assets,
and when that is done the supervisor of banking shall certify the fact to
the secretary of state, whereupon the corporation shall cease to exist and
the secretary of state shall note that fact upon his records."

(Laws of

1923, p. 312, sec. 12; Rem. 1927, Sup., sec. 3232; Banking Law Pamphlet,
1929, sec. 97, p. 45.)
Report required showing entire net income; taxation of consolidated
corporation.
Every bank or corporation which acquires by- merger or by consolidation, the major portion of the assets or franchises of another bank or
corporation in this state, or which merges or consolidates with another bank
or corporation, must in its annual report show its own and the consolidated




X-693T

(Washington - cont'd.)
entire net income of all such banks or corporations for the preceding
fiscal or calendar year to the extent that all such income has not "been
used or included in measuring a tax under this act*

In any event, it

is liable for and must pay all taxes that would have been due and payable
by the bank or corporation whose assets or franchises were acquired or
which was merged or consolidated, had it continued in business.

(Laws of

1929, ch. 151, sec. 20; Banking Law Pamphlet, 1929, sec. 20, p. 135.)

WEST VIB&rfllJL.
Consolidation or sale of assets.
Any banking institution may at any time with the consent in
writing of the Commissioner of Banking take over the business and assets
and assume the liabilities of another banking institution, all of the terms
or conditions of any such purchase or consolidation to be first approved
by the Commissioner of Banking.

(Code of West Virginia for 1931, Chapter

31, Article 8, Section 29.)
Legal effect of consolidation or sale.
Upon the completion of any such purchase or consolidation and
by operation of law the purchasing or consolidated banking institution
shall be substituted in the room and stead of each of the participating
institutions in all fiduciary relationships, and all and singular the
titles, properties, offices, appointments, rights, powers, duties,
obligations, and liabilities o£ each participating institution as trustee,
executor, administrator, guardian, depository, registrar, transfer agent,
or other fiduciary shall be vested in and devolve upon the purchasing or




X-3951
~-188~u
(West Virginia - cont'd.)

consolidating institution, and such purchasing or consolidating institution shall he entitled to take, receive, accept, hold, administer,
.and discharge any and all grants, gifts, "bequests, devises, and conveyances, trusts, and appointments made " y deed, will, agreement,
b
order of court, or otherwise in the future or in the name of any such
participating institution, whether made, executed, or entered into
"before or after such purchase or consolidation, and whether to vest
or "become effective "before or after such purchase or consolidation
as fully and to the same effect as if the purchase or consolidated
institution had "been named in such deed, will, agreement, order, or
other instrument instead of another participating institution.

(Code

of Y T s Virginia for 1931, Chapter SI, Article.8, Section 29).
iet
I o corporation except cons oil da t ing or p i chasing corporation may use
T
ir
the name of participating corporation.
After a purchase or consolidation no other corporation shall
" e allowed to take or use the name of any institution participating in
b
.such purchase or consolidation.

(Code of West Virginia for 1931, Chapter

31, Article 8, Section 29).
General laws relating to consolidation of corporations.
A note " y the Committee of the Legislature appointed to consider
b
the report of the revisers who prepared the draft for the Code of 1931
indicates that the above quoted provisions of law are supplementary to the
general provisions of law relating to the consolidation of corporations.
Under these general provisions of la^ any two or more corporations organized
or existing under the laws of West Virginia for the purpose of carrying on
any kind of "business may consolidate or merge into a single corporation,




X-6'931
- -189-=.
(West Virginia - cont'd.)

which may " e any one of such constituent corporations or a new corporation
b
to " e formed " y such consolidation or merger, as shall " e specified in
b
b
b
the agreement mentioned below.
Proceedings for consolidation.
The directors or a majority of them of such corporation as desire
to consolidate or merge must enter into an agreement signed by them and
under the corporate seals of the separate corporation, prescribing the
terms and conditions of consolidation or merger, the mode of carrying same
into effect, and stating such other facts required or permitted " y law to
b
he sot out in an agreement of incorporation as can he stated in the case
of a consolidation or merger, stated in such altered form as the circumstances of the case may require, as well as the manner of converting the
shares of the constituent corporations into shares of the consolidated
corporation, with such other details as are deemed necessary.
Such agreement shall he submitted to the stockholders of each
constituent corporation at a meeting thereof called separately for the
purpose of taking same into consideration. Due notice of the time, place,
and object of said meeting must he given by publication at least, once a
week for four successive weeks in one or more newspapers published in the
county wherein each such corporation has its principal office or conducts its
business, and a copy of such notice shall he mailed to the last known postoffice address of each stockholder or such corporation at least twenty
days prior to the date of meeting.
At such meeting the said agreement must he considered and a vote
hy ballot in person or by proxy taken for the adoption or rejection thereof,




X-6931*

(West Virginia - cont'd.)

each share entitling the holder thereof to one vote.

If the votes of

stockholders of each of such corporations representing two-thirds of the
total number of shares of its capital'stock shall be fqr the adoption of
such agreement, then that fact must he certified on such agreement by
the secretary of each such corporation under tho seal thereof, and the
agreement so adopted and certified shall " e signed by the president end
b
secretary of each of such corporations under the corporate seals thereof
and acknowledged " y the president of each such corporation, and the agreeb
ment must " e filed in the office of the secretary of the state and reb
corded as provided " y law. When such agreement has "been so filed and
b
recorded such record is evidence of the agreement and act of consolidation
or merger of such corporation and the observance of all acts and conditions
to have "been ohserved and performed precedent to such consolidation or
merger.

(Code of West Virginia for 1931, Chapter 31, Article 1, Section 63.)

Sale of entire assets and franchises.
Every corporation organized and existing under the laws of West
Virginia may at any meeting of its board of directors sell, lease, or exchange all of its property and assets, including its good will and its
corporate franchises, upon such terms and conditions and for such considered
ation as its hoard of directors shall deem expedient and for the "best
interest of the corporation when and as authorized " y the affirmative vote
b
of sixty per cent of the stock issued'and outstanding.having voting power
given at a stockholders' neeting duly called for that purpose, or when
authorized " y the rrritten consent of the holders of sixty per cent of the
b
voting stock issued and outstanding, unless the certificate of incorpora-




X-6931
~-191-( 7 s Virginia - cont'd.)
\et

tion requires the vote or written consent of the holders of a larger proportion of the stock issued and outst-onding.
1931, Chapter 31, Article 1, Section 64).




(Code of West Virginia for

^rfSY--

X*693i

(West Virginia - cont'd.)

Consolidated or purchasing; corporation may use name of participating
corporati ons.
The purchasing or consolidated corporation is given the right
to use the name of any of the participating corporations but no other corporation can take or use the name of any of such participating corporations.
(Laws of 1929, ch. 23, sec. 31.)

WISOOHSIK.
Consolidation of "banks.The laws of. Wisconsin provide that "A "bank, which is in good
faith winding up its "business, for the purpose of consolidating with some
other "bank, may transfer its resources and liabilities to the "bank with
which it is in process of consolidation; . b t no consolidation shall " e
"u
b
made without the consent of tha commissioner of "banking, and not then to
defeat or defraud any of the creditors in the collection of their debts
against such "banks, or either of them."

(Wise. Stats., sec. 221, 23.)

The laws further provide that, with the approval of the commissioner of "banking, any two or more "banks located in the same county, city,
town or village may consolidate under the charter of any of the consolidating "banks. (Wise. Stats., sec. 221. 25 (1).)
Terms of consolidation;

ggreenent of dErectors; ratification " y stockholders.
b

The consolidation may "be on such terms and conditions as may " e
b
agreed upon " y a majority of the "board of directors of each consolidating
b
"bank and must " e "ratified and confirmed" " y two-thirds of the outstanding
b
b
stock of each "bank at a meeting called " y the directors, after sending notice
b




(Wisconsin- cont'd.)

of the time, place and object of the meeting to each shareholder byregistered mail at least thirty days prior to the meeting.

(Wise. Stats.,

sec. 221.25(1).)
Capital stock required of consolidated bank.
The capital stock of the consolidated bank "shall not be less
than that required under existing law for the organization of a state
bank in the place in which it is located; * * *."

(Wise. Stats., sec.

221.25 (1).)
Dissenting stockholder, rights of.
Within twenty days after the commissionei- of banking has approved the consolidation, any stockholder of the consolidating banks
who has not voted for the consolidation may give notice to the
directors of the consolidated bank that he dissents from the consolidation whereupon he becomes entitled to receive the value of the shares held
by him. Provision is made for an appraisal of such shares and for a reappraisal in case the value first appraised is not satisfactory.

(Wise.

Stats., sec. 221.25(1).)
Iiitfuidation not essential; report of assets and liabilities of consolidating
bruiks.
"The bank or banks consolidating with another bank under the provisions of the preceding subsection (S^c. 221.25(1).) shall not be required
to go into liquidation but their assets and liabilities shall be reported
by the bank with which they have consolidated; * * *."
221.25(2).)




(Wise. Stats., sec.

^/cT<?> ~

X-6931

(Wisconsin - c o n t ' d . )
Legal effect of consolidation of "banks.
"All the rights, franchises and interests of said "banks so
consolidated in and to every species of property, personal and mixed,
and choses in action thereto belonging, shall be deemed to be transferred
to and vested in such bank into which it is consolidated without any
deed or other transfer, and the said consolidated bank shall hold and enjoy the same and all rights of property, franchises and interests in the
same manner and to the same extent as was hold and enjoyed by the ban!': or
banks so consolidated therewith."

(Wise. Stats, sec, 221.25(2).)

Consolidation of trust companies.
Any State trust company "may consolidate with any other similar
corporation in the same county, city, town or village in the manner provided for the consolidation of b . l s under section 221.25; * * *."
aoc

(Wise.

Stats., sec. 223.11.)
Legal effect of consolidation of trust companies.
"In the event of such consolidation the consolidated corporation,
by whatever name it may assume or be known, shall be a continuation of the
entity of each and all of the corporations so consolidated for all purposes
whatsoever, including holding and performing any and all trusts and fiduciary relations of whatsoever nature of which the corporations so consolidating, or either or anyvof them, was fiduciary at the time of such consolidation, end also including its appointment in any fiduciary capacity by
any court or otherwise, and the holding, accepting and performing of any and
all trusts and fiduciary relations whatsoever as to or for which either or
any one of the corporations so consolidating may have been appointed,
nominated or designated by any will or conveyance or otherwise, whether or




.. */J~y>.
-19 5*

X-693L-

(Wisconsin - cont'd.)
not such trust or fiduciary relation shall have come into being or taken
effect at the time of such consolidation."

(Wise. Stats., sec. 223.11.)

ffTCMHTQ.
Definition of "Stats bank".
"Every bank, banker or corporation in this state doing a banking
business under the provisions of this Act, shall be known as a state bank;
and any and all reference herein made in this Act to state banks shall
apply to every individual, firm or corporation doing a banking business
under the provisions of this Act''.

(Laws of 1925, ch. 157, sec. 5, as

amended by Laws of 1929, ch. 54, sec. 1.)
Definition of "bank" or "banking business".
"Any person, firm or corporation (except national banks) having
a place of business within this state where credits are opened by the
deposit or collection of money or currency or negotiable paper subject to
be paid or remitted upon draft, receipt, check, or order, shall be regarded
as a bank or banker, and as doing a banking business under the provisions of
this Act." (Laws of 1925, ch. 15.7, sec. 10; Banking Law Pamphlet, with
1927 amendments, sec. 10, p. 13.)
The laws also prov?.de "that the term 'trust company' may be used
by a person, firm or corporation when the business transacted is in no sense
a banking business". (Laws of 1925, ch. 157, sec. 11; Banking Law Pamphlet,
with 1927 amendments, sec. 11, p. 13.)
Transfer of assets and liabilities for purpose of consolidation.




"A state bank which is in good faith winding up its business for

_

— O ... i j j . '

-196- -

(ffyominft - cont'd.-.)
the piirpoae of consolidating with some other "bank may transfer its assets
and liabilities to the bank with which it is in process of consolidation,
upon receiving written consent of the State Examiner, and not otherwise,"
(Laws of 1925, ch. 15 7, sec, 103s l r p d n Law Pamphlet< with 1927 amendB.J.g
ment B* sec* 108, p* S9.) •





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