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FEDERAL RESERVE BOARD WASHINGTON ADDRESS OFFICIAL CORRESPONDENCE TO THE FEDERAL RESERVE BOARD DeC6Hi) QT 2 , 1931. Mr. W&, McC. Martin, Governor, Federal Reserve Bank, St. Louis, Missouri. Dear Governor Martin: During the meeting today with the Governors* Conference of the Federal Reserve Committee on Branch, Group and Chain Banking a request was made that each Governor be furnished with a copy of the confidential data submitted recently "to the Sub-committee of the Committee on Banking and Currency of the United States Senate which is engaged in a survey of the operation of the National and Federal Reserve banking systems. A copy of this data is enclosed herewith and it is requested that you also regard it as confidential. Very truly yours, Chester Morrill, Secretary. Washington, D; C. November 28, 1931. PROGRESS REPORT OF THE COMMITTEE ON BRANCH, GROUP M D CHAIN BANKING TO THE CONFERENCE OF GOVERNORS AND CHAIRMEN NOVEMBER 30, 1931 Senator Glass requested the Governor of the Federal Reserve Board on October 15th to submit to the Subcommittee of the Senate Committee on Banking and Currency any available material collected by the Federal Reserve Committee on Branch, Group and Chain Banking. In answer to this request a preliminary statistical report on certain phases of the investigation was prepared by the staff of the Committee and submitted to the Senator by the Governor on November 10th. This preliminary report consists very largely of statistical tables and charts and contains very little interpretative text. The material covers: (l) Bank Changes; (2) Bank Suspensions; (3) Banking Costs and Profits; (*+) Branch Banking; and (5) Chain and Group Banking. A limited number of copies of this report has been mimeographed and twelve copies are available for the members of the conference. Immediately after appointment by the Federal Reserve Board on February 26, 1930. the Committee on Branch, Group and Chain Banking * bogan to outline the scope of its work and to prepare a program for its investigation. The task assigned by the Board was very broad in its terms, but it soon became apparent to the Committee that in view of the importance of the time element some very definite limitations to its field of study should of necessity be made. After surveying the field in a preliminary way, it was decided to concentrate the Committee's efforts on certain major projects which bear directly on the question of the banking structure rather than to extend the investigation too broadly. - 2 The phases of the subject to which it was decided to give most attention are the following: (1) Bank Suspensions in the United States (2) Earnings and Expenses of National Banks (3) The Dual Banking System in the United States (U) Banking Concentration in the United States (5) Branch Banking in the United States (6) Group and Chain Banking in the United States (7) Branch Banking in Canada (S) Branch Banking in England These projects will he supplemented by a few brief chapters on such subjects as: economic background for bank changes, competition from non-hanking institutions, certain phases of bank supervision, and perhaps the banking systems of one or two other foreign countries if time permits. Among the subjects which the Committee feels that it cannot adequately cover under its present program are: banking supervision in the United States, functional changes in our hanking system, and the banking systems of other leading foreign countries. In view of the importance of bank supervision in this country and its apparent shortcomings it is "believed that any adequate investigation of that subject would have to "be made by a special committee endowed with special powers. After a survey of the material which was then availahle on the various projects listed above, the Committee felt that merely assembling and analyzing this material would make little contribution to existing information and would not adequately meet the needs of the situation. Because of the need for a more comprehensive body of data on which a con*structive banking program might be based it was decided to collect thr.ough - 3various channels whatever additional factual material would "be necessary to give a more comprehensive picture of the causes for banking difficulties and of the forces tending towards changes in the hanking structure. Various schedules, questionnaires, forms and tables were, therefore, prepared designed to secure the desired information regarding: (1) Each of the hanks suspending since the beginning of 1921; (2) Earnings and expenses and operating ratios of each national bank for each of five years 1926-1930; (3) The organization, management, operating policies, etc., of the leading group and branch banking systems of the country; (4) The details of consolidations and other bank changes during the ten-year period; (5) The affiliations of banks; (6) the classification of all active banks in the country by size of loans and investments, size of town and size of capital stock; (7) Examination reports of suspended banks; (S) Farm loans and other data showing the nature of agricultural commitments; (9) Quality indices of the investment holdings of banks, and certain other supplementary bits of information. Much of this information has been compiled by the Federal reserve banks but parts of it have been furnished by the state banking departments and other agencies at the request of the Federal reserve banks. Much of the material was not received until this past spring and summer, but, with minor exceptions, it is now in the hands of the Committee, and the process of analyzing it is well on the way towards completion. Reports on these major projects have been submitted and are now being revised, after which they will be worked over for final submission. The following is a brief statement of the scope of the work undertaken under the various projects. Suspensions. The study on suspensions has been divided into four sections and material has been collected on each of these phases of the subject. _ k (1) A statistical analysis which in addition to giving the number and location of suspensions makes comparisons on the 'basis of the size of hanks, size of towns, and geographical divisions. This study also shows the ultimate losses to depositors of hanks completely liquidated. These detailed statistical data cover only the period 1921-1931i while for prior years hack to 1892 more general statistical information has been compiled. (2) Causes of suspensions as revealed in the study of examination reports of a limited number of suspended hanks. This touches upon such subjects as management, supervision, loan policies, etc. (3) Agricultural conditions and hank suspensions. This is a study of agricultural changes since 1900, including commodity prices and land values and their effects upon hanking institutions. It also includes a study of hank commitments to agriculture and the general credit conditions in agricultural districts. (k) Florida—a case study of the effects of real estate speculation on hanking institutions. Earnings and Expenses. A detailed study of earnings and expenses of all national hanks over a five-year period, 1926-1930, classified accottding to size of hank, size of community and by geographical divisions. This is supplemented by a presentation of the general movements and factors in bank earnings and expenses over several decades. The Dual Banking System. An examination of Federal and state bank- ing laws, recommendations, practices, etc., with a view to determining the extent of the competition which has existed between the two systems and the general effects of this competition. It also includes certain - 5comparisons and salient facts regarding "bank supervision. Banking Concentration. This is largely a statistical study of the changes in the number, nature and size of "banking institutions including consolidations, affiliations, etc. Branch Banking in the United States. The study on Tbrancli hanking will he covered in two sections. (1) A general statistical and historical study of branch banking experience in the United States including a discussion of the sources and causes of opposition and the factors involved in the branch banking controversy. (2) Branch banking in California. This is a special study on the growth and present position of branch banking in California including motivating forces, effects of the development, etc. Group and Chain Banking in the United States. An outline of the development and present position of group and chain banking, including organization, management, policies, methods of operation, etc. It also includes a discussion of the problems involved in group banking and the effects of this development. Much of the material for this report comes from the questionnaires answered by the principal groups in the country. Branch Banking in Canada. This report has been written and after a limited amount of editing will be ready for submission. It includes a discussion of the following phases of Canadian branch banking: structure and supervision, safety, adequacy of service, cost of service, test of the post-war deflation, and concentration. In addition to making use of the documentary and other published material available r - t> - in t h i s country, a member of the research staff spent about four weeks in Canada studying the various phases of branch hanking. Branch Banking in England. The section on "branch hanking in England, which covers roughly the same ground as the Canadian stud;', has been prepared and with a limited amount of e d i t i n g w i l l be ready for submission. FEDERAL RESERVE COMMITTEE Oil BRANCH, GROUP AID CELTS BAMI1T& STATISTICAL DATA Submitted to the Subcommittee of the Committee on Banking and Currency of the United States Senate November S, 1931 Confidential and not for Publication This is preliminary material submitted in advance of the Committee's full report, and is subject to revision* FEDERAL R2SJ]RVE C0MHITT5E ON BRANCH, GROUP, MB CHA.PT BAHZnTO Members of the Committee E. A. G-oldenweiser, Director, Division of Research and Statistics, Federal Reserve Board, Chairman Ira Clerk, Deputy Governor, Federal Reserve Bank of San Francisco II. J. Fleming, Deputy Governor, Federal Reserve Bank of Cleveland L. R. Rounds, Deputy Governor, Federal Reserve Bank of Hew York 3. L. Snoad, Chief, Division of Banlc Operations, Federal Reserve Board J. H. Riddle, Executive Secretary COITOECTTS Bank Changes Page 1 Bank Suspensions 39 Banking Costs and P r o f i t s 88 Branch Banking 118 Chain and Group Banking 15& November 6, 1931 Federal Reserve Committee on Branch, Group and Chain Banking A A J U L _C_H_A_N_G_1_SJ. _1_9_2_0_-_1_9_3_0 Preliminary material subject to revision BAM CHAiTSES. 1920-1930 During the ten-year period following 1920 the number of incorporated commercial bonks and t r u s t companies in the United States declined fron 29,230 to 21,903—a net redaction of 7,327 tanks. This decrease i s the f i r s t iiiportant reversal of the growth in n a i l e r s in almost a hundred y e a r s . For two decades p r i o r to 1920 the r a t e of increase was as rapid as the r a t e of decrease has subsequently been. contributed most to both the r i s e and the d e c l i n e . Appendix I show these developments. State banks have Charts 1 and 2 and In these and the following c h a r t s and t a b l e s figures a r e given for State and national banks only, including t r u s t companies and stock savings banks. Mutual savings banks and p r i v a t e banks are excluded. Position i n 1920: Tables 1 and 2 and Charts 3 and k give the number of banks, the population per bank and the d i s t r i b u t i o n of banks by size in 1920. As a r e s u l t of the rapid r i s e in the number of banks p r i o r to 1920, the population per bank for the country as a whole declined from 8,828 per bank in 1900 to 3,6l7 per bank in 1920. In two of the a g r i - c u l t u r a l s t a t e s the popalation per bank was l e s s than 1,000 in 1920 (Table 2 ) . The growth had brought into existence a l a r g e number of small i n s t i t u t i o n s . About 22 per cent of the banks in 1920 had loans and investments of l e s s than $150,000, and 6k per cent had loans and i n vestments of l e s s than $500,000. Tho d i s t r i b u t i o n of banks by s i z e and by goographic divisions i n 1920 i s given i n Appendix VI, and i n 1930 in Appendix V I I . 1 Analysis of changes 1920-1930: Charts 5 to 2 and Tables 3 to 6 illus- trate the changes which occurred from 1920 to 1930 hy size of bank, size of town and geographic divisions. It will he noted that the de- clines occurred chiefly among small banks. Among all size groups of less than $2,000,000 of loans and investments there was a net decrease in number, and among all larger size groups there was a net increase. The number of banks with loans and investments of from $150,000 to $250,000, for example, decreased 30 per cent, while the number of banks with loans and investments of $50,000,000 and over increased Uo per cent (Chart 5)» The resulting contrast between the banking structure of 1920 and 1930 is shown in Charts 6, 7, and 8, in Tables 3, k, and 5, and in Appendices VI and VII, The change in number of banks has been attended by a preponderant growth in the business of large institutions (Table 6). The aggregate loans and investments of all banks under $1,000,000 in size declined nearly 25 per cent from 1920 to 1930» but f° r banks of $50,000,000 and over the aggregate more than doubled during the same period. Chart 9 an(i Table 7 show that the decrease which has come about in the number of banks during the ten-year period is the net difference between primary organizations on the one hand and discontinue ances through consolidation, suspension and liquidation, on the other. There has been an almost uniform decrease year by year in the number of primary organizations, a gradual increase in discontinuances through consolidation, and a somewhat irregular but substantial increase in suspensions. The latter has been the largest single factor of change. Primary organizations and conversions from private banks are given separately in Appendix II, and primary organizations are given in still greater detail in Appendices III and IV. Voluntary liquidations, which have been included with suspensions in Chart 9» and reopenings, which have been subtracted from suspensions in the same chart, are shown separately in Appendix II. Suspensions and reopenings are discussed separately in another section. Consolidations: Chart 10, Tables 8-10 and Appendix V give the number of consolidations since 1900 and, for the period 1921-1930* their distribution by size. Consolidations have been far more numerous since 1920 than in prior years and have occurred with the greatest relative frequency among large banks. Only 19.^ per cent of the number of banks of less than $25,000 capital have participated in consolidations during the ten years, while among banks of $1,000,000 capital or more, the participations in consolidations have been twice as numerous as the number of banks. Sources The information in the charts and tables relative to bank changes has been compiled from various sources. The data in Charts 1 and 2 and Appendix I, as explained in notes on the latter, are taken in part from the annual reports of the Comptroller of the Currency, in. part from the report of the National Monetary Commission in 1911, and in part from the studies made by the Committee on Branch, Group and Chain Banking. The distribution of banks in 1920 and I93O shown in various charts and tables is based on a special study initiated by the Committee in order to classify banks according to amount of capital, amount of loans and investments, and size of town. For national banks these basic classifications were prepared in the office of the Comptroller of the Currency. For State banks they were prepared in some cases in the offices of the superintendents of banks and in some cases by the Federal reserve banks. The information on changes in the number of banks through primary organizations, consolidations, etc., is also based on a special study initiated by the Committee. For national banks the original data was compiled by the Division of Bank Operations of the Federal Reserve Board. For State banks they were compiled in the offices of the various superintendents of banks with the cooperation of the Federal reserve banks, A copy of the form used in collecting the original data is attached as Appendix VIII. A separate copy of this form was prepared for each bank change during 1921-1930. CHART 1 NUMBER OF INCORPORATED COMMERCIAL BANKS AND TRUST COMPANIES IN THE. UNITED STATES NUMBER OF BANKS 30.000 1834-1930 NUMBER OF BANKS 30,000 Number of State and national banks, including trust companies and stock savings banks, in the United States eaoh year from 1834 to 1930. Private banks and mutual savings banks are not included. Figures are as of June 30 prior to 1920 and as of December 31 for 1920 and subsequent years CHART 2 NUMBER OF STATE AND NATIONAL BANKS 1834-1930 NUMBER OF BANKS Z5.000 NUMBER OF BANKS 25.000 Number of State and national banks, including trust companies and stook savings banks, in the United States each year from 1834 to 1930. Private banks and mutual savings banks are not included. Figures are as of June 30 prior to 1920 and as of December 31 for 1920 and subsequent years 7 NUMBER OP BANKING INSTITUTIONS IN 1920 8 CHART! POPULATION PER BANK 12.000 POPULATION PER BANK IN 1 9 2 0 BY GEOGRAPHIC DIVISIONS POPULATION PER BANK 12.000 Population per bank. State and national, in 1920 in the different geographic dirislone of the United States Table 1 - POPULATION PEE BAM IN 1900 AMD 1920 Geographic divisions 1900 1920 S.297 10,293 Middle Atlantic 11,072 8,1^-0 North Central 10,230 3.962 9,173 4,257 South Eastern 15,236 U.J+91 South Western 13.869 3,082 Western Grain M59 1,386 Rocky Mountain 7,^3 2,111 Pacific Coast 6,769 3.9^ 8,828 3,6l7 New England Southern Mountain UNITED STATES Table 2 - POPULATION PER B A M IN 1900 AND 1920 WESTERN GRAIN STATES 1900 1920 Minnesota 6,486 1.559 North Dakota 2,059 73^ South Dakota 2,953 913 Iowa 5.708 l.UoU Nebraska 2,318 1,083 Missouri 5,329 2,043 Kansas 3,388 1,292 States 11 CHART 4 NUMBER OF BANKS DISTRIBUTION OF BANKS IN 1920 BY SIZE GROUPS NUMBER OF BANKS 7000 Number of State and national banks on June 30, 1920 grouped according to amount of loans and investments ±2 ANALYSIS OP CHANGES 1920-1930 13 CHART 5 PER CENT + 40 PERCENTAGE CHANGES IN THE NUMBER OF BANKS FROM 1920 TO 1930. BY SEE! GROUPS PERCEHT +4-0 Percentage changes in the number of State and national banks from 1920 to 1930 in the different size groups according to amount of loans and investments CHART 6 DISTRIBUTION OF BANKS Br5IZEGR0UP5 IN 1920 AND 1930 NUMBER Of BANKS NUMBER OF BANKS 7000 Number of State and national banks in. 1920 and 1930,grouped aooording to amount of loans and investments Sable 3 - DISTRIBUTION OP 3ANKS IN 1920 AND I93O BY SIZE GROUPS Size Groups Loans and investments In thousands of dollars 1920 1930 Percentage change from 1920 to 1910 Under $150 6,336 k,839 - 2k$ 150 to 250 5.027 3,510 ~ 30 250 to 500 6,915 lj-,966 - 28 500 to 750 3.159 2,362 - 25 750 to 1,000 1,811 1.552 - ih 1,000 to 2,000 2,729 2,600 - 2,000 to 5,000 1.573 1.887 + 20 Number <jf banks 5 5,000 to 10,000 50s 596 + 17 10,000 to 50,000 369 ^53 + 23 50,000 and over 72 101 + ko 22.U99 22,866 - 20 Total Table 4 - DISTRIBUTION OF BAMS IN 1920 AND 1930 BY SIZE OP CAPITAL STOCK Size Groups Capital stock Number of banks 1920 Per cent of total Number of banks iq^o Per cent of total Under $25,000 8,087 28.4 4,769 20.9 25,000 to 49,999 8,624 30.3 6,918 30.2 50,000 to 99,999 5,680 19.9 4,708 20.6 100,000 to 199,999 3.&& 12.9 3.587 15.7 200,000 to 999,999 1,990 7.0 2,351 10.3 1,000,000 and over 434 1.5 533 2.3 28,499 100.0 22,866 100.0 All groups CHART 7 NUMBER DISTRIBUTION OF BANKS IN 1920 AND 1930 BY SIZE Of TOWNS NUMBER OF OP BANKS 8.000 BANKS 8.000 Number of State and national, banks in 1920 and 1930, grouped according to population of towns Table 5 - DISTRIBUTION OF BANKS IN 1920 AND I93O. BY SIZE OP TO'.SNS Population of towns Number of "banks 1920 Per cent of total Number of banks 1930 Per cent of total Less than 5OO 8,06l 28.3 5.713 25.0 500 to 1,000 5.055 17.7 3,s6o 16.9 1,000 to 2,500 5,630 19.8 ^,353 19.0 2,500 to 5,000 3.016 10.6 2,483 10.9 5,000 to 10,000 2,005 7.0 1,831 8.0 10,000 to 25,000 1,726 6.0 1,607 7.0 25,000 to 50,000 736 2.6 746 3.3 50,000 to 100,000 644 2.3 579 2.5 100,000 and over 1,626 5.7 1,694 7.4 Total 28,499 100.0 22,866 100.0 Table 6 - LOANS AND INVESTMENTS OF ACTIVE BANKS 3Y SIZE GROUPS Size Groups Loans and investments June 30, 1920 . Per cent Amount of (000 omitted) total 7,537,000 21 1,000,000 to< 10,000,000 12,016,000 10,000,000 to 50,000,000 50,000,000 and over Under $1,000,000 All banks $ June 10, 1910 Per cent Amount of (000 omitted) total 5,717,000 12 33 13,6^0,000 28 7,366,000 21 8,815,000 18 9,156,000 25 19,890,000 42 36,075,000 100 Us,062,000 100 $ CHARTS PERCENTAGE DISTRIBUTION OFBANKS BY SIZE GROUPS 1920 AND 1930 The bars represent the proportion, of all banks in each geographic division which falls within each size greup. The cross-hatched bars give the distribution in 1920 and the black bars in 1930 20 2± CHART 9 CHANGES Of THE NUMBER OF BANKS NUMBER 1921-1930 Changes in the number of State and national banks each year from 1921 to 1930 due to new organisations, consolidations and suspension* Table 7 - CHANGES IN THE NUMBER OF BANKS EACH YEAR FROM 1921 TO 1930* Year Number of primary organ- Decrease in izations and the number of conversions banks through from private consolidations banks** Suspensions and liquidations (less reopenings) Net decrease in the number of banks 1921 535 305 k23 193 1922 457 392 268 203 1923 509 327 6l2 U30 192U U15 372 710 667 1925 k2S 3& 56O U96 1926 359 kSi sUo 9U2 1927 320 565 567 812 1928 267 532 501 766 1929 21+7 635 6lS 1,006 1930 153 767 1,198 1,812 3.690 U.720 6,297 7,327 1921-1930 * These changes are shown in greater detail in Appendix t% attached hereto. ** Primary organizations are classified according to size of capital stock and according to size of towns in Appendices III and IV attached hereto. iCni CONSOLIDATIONS CHART 10 NUMBER 800 NUMBER OF BANK CONSOLIDATIONS 1900-1930 NUMBER 800 Number of consolidations involving State and/or national banks, including mergers, absorptions, e t c , each year from 1900 to 1930 Table 8 - BANK CONSOLIDATIONS 192I-I93O Year Number of Number of banks disconNumber of banks entering tinued by consolidations consolidations consolidations 1921 293 5S0 305 1922 3S3 725 392 1923 319 615 327 I92U 365 713 372 1925 359 686 364 1926 452 894 46l 1927 553 1,016 565 1928 512 991 532 1929 601 1,216 635 1930 735 1/493 767 4,572 8,929 4,720 Total Note: The number of consolidations is determined by counting each transaction in which two or more banks unite, except that in California, where numerous small banks in different places were frequently absorbed at the same time, the absorption of each separate bank :'s counted as a consolidation. In the number of banks entering consolidations the same bank is counted as many times ac it is involved in consolidation, except that in California the large banks absorbing numerous smaller institutions are counted only once for the year. If there were always only two banks to a consolidation the number of banks entering consolidations would be exactly twice the number of banks discontinued by consolidation, but it frequently happens that three or more banks are involved. Table 9 - NUMBER OF 3ANKS ENTERING CONSOLIDATIONS I92I-I93O Grouped by Size of Capital Stock Size of capital stock Number entering consolidations Number entering Number of consolidations active banks per hundred June 30, 1920 active banks Under $25,000 1,569 8,087 19.4 25,000 to U-9,999 2,096 8,624 24.3 50,000 to 99,999 1,577 5.6SO 27.8 100,000 to 199,999 l,4l5 3,684 38.4 200,000 to 999,999 1,402 1,990 70.5 1,000,000 and over S70 43U 200.5 8,929 28,1+99 31.3 Total Table 10 - NUMBER OF BANKS DISCONTINUED BY CONSOLIDATIONS DURING- 1921-1930 PER HUNDRED ACTIVE BANKS JUNE 30, 1920 By Size of Towns Population of towns Number discontinued consolidations Number Number of discontinued a c t i v e banks per hundred June 30, 1920 active banks 1,01+5 8,06l 13.0 500 to 1,000 5S2 5,055 11.5 1,000 to 2,500 719 5,630 12.8 2,500 to 5,000 1+58 3,016 15.2 5,000 to 10,000 31+U 2,005 17.2 10,000 to 100,000 726 3.106 23.1+ 100,000 and over SU6 1,626 52.0 H.720 28,1+99 16.6 Less than 500 Total i<wO APPENDICES A P P E N D I X I NUMBER OF INCORPORATED COMMERCIAL BANKS AND TRUST COMPANIES IN THE UNITED STATES IS3U-I93O Year I834 1835 1836 1837 I838 18?9 is4o 181+1 1842 1843 1844 184R 1846 1847 1848 I8I+9 I85O 1851 1852 1853 I85U I855 I856 1857 I858 I859 i860 I861 I862 IS63 1864 I865 1866 I867 1868 I869 1870 I871 I872 1873 Number of State banks 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 1,089 349 297 272 247 259 325 %2 566 558 Number of national banks Total State and national banks 506 704 713 788 829 840 901 784 692 691 696 66 467 1,294 1,634 1,636 1,640 1,619 1,612 1,723 1.853 1,968 707 707 715 751 782 824 879 8I5 750 1,208 1,307 1,398 1.4l6 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 2,4i9 2,526 Append!::: T. cc:at '• 1.. -2- Year IS 74 1875 1876 1877 1878 1879 1880 1881 1882 1883 1884 1885 1886 1887 1888 1889 1890 1891 1892 1893 1894 1895 I896 1897 I898 IS99 1900 1901 1902 1903 1904 1905 1906 1907 19OS 1909 1910 1911 1912 1913 1914 1915 1916 1917 Number of State banks 551 633 592 838 847 850 846 853 870 96S l,06l 1,174 1.259 1.583 1,809 2,160 2,636 3,227 3,608 3.914 3.933 £.05? 4,174 4,242 ^.330 4,529 4,904 ^ 6,060 6.935 7,905 8,95s 10,665 11,828 12,77S 13,421 14,348 15.322 16,037 16,841 17,49S 17,748 18,253 18,710 Number of national banks 1,983 2,076 2,091 2,078 2,056 2,048 2,076 2,115 2,239 2,417 2,625 2,689 2,849 3.014^ 3.120 3.239 3.484 3,652 3.759 3,807 3.770 3,715 3,689 3.610 3.581 3.5S2 3.731 4,163 4,532 4,936 5.327 5,664 6,046 6,422 6,817 6,919 7,13S 7.270 7,366 7,467 7.51S 7,597 7,571 7,599 Total State and national banks 2.534 2,709 2,683 2,916 2,903 2,898 2,922 2,968 3,109 3,385 3,686 3,863 4,108 ,4,597 4,929 5,399 6,120 6,879 7,367 7,721 7,703 7,774 7,863 7,852 7,911 8,111 8,635 9,626 10,598 11,871 13,232 14,622 16,711 18,250 19,595 20,140 21,486 22,592 23,403 24,308 25,016 25,345 25,824 26,309 Appendix I L.c;r-t" d. -3- Year 1918 1919 1920 1921 1922 1923 1924 1925 1926 1927 192S 1929 1930 Number of State banks Number of national banks 19,1+oM19,646 21,107 20,872 20,6l4 20.22B 19,694 19,193 18,393 17,728 7,699 7,779 8,123 8,165 8,220 8.17S 8,043 8,048 7,906 7,759 7,629 7,^03 7,033 17,092 16,312 14,870 Total State and national banks 27,103 27,^25 29,230 29,037 28,834 28,404 27,737 27,241 26,299 25,487 24,721 23,715 21,903 Sources: State banks, including stock savings banks, and trust companies: 1834-1872 inclusive from the Annual Report of the Comptroller of the Currency for 1909, p. 912, with the exception that the figure for I852 is interpolated. 1873 interpolated. I874-I876 inclusive from the Annual Report of the Comptroller of the Currency for I892, pp. 292 and following. 1877-1908 inclusive from the Report of the National Monetary Commission, vol. 7, PP» 243 an(l following, with the exception that the figure for trust companies for 1900 given therein as 492 through an error in addition, is corrected to 502, which makes the total state banks 4,904. 1909-1919 inclusive from annual Reports of the Comptroller of the Currency. The figures are as of June 30. 1920-1930 inclusive compiled by Federal Reserve Committee on Branch, Group and Chain Banking, from records of State Superintendents of Banks as to state banks. The figures are as of December 31« National Banks: I863-I9O8 inclusive from the Annual Report of the Comptroller of the Currency 1920, pp. 260 and following. 1909-1919 inclusive from annual Reports of the Comptroller of the Currency. The figures for these years are as of June 30. 1920-1930 inclusive compiled by the Federal Reserve Committee on Branch, Group and Chain Banking from records of the Federal Reserve Board. The figures are as of December 31. APPENDIX II CHANGES Iff THE NUMBER Of BANKS IN THE UNITED STATES EROM 1920 TO 1930 (National and State banks, including t r u s t companies and stock savings "banks) 10- Calendar y e a r 1921 Number of "banks a t "beginning of y e a r I n c r e a s e i n number of "banks: By p r i m a r y o r g a n i z a t i o n By r e o p e n i n g 3 y c o n v e r s i o n from p r i v a t e "banks Total increase Decrease i n nuniber of "banks: By c o n v e r s i o n t o p r i v a t e "banks By v o l u n t a r y l i q u i d a t i o n 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 Total decrease Net d e c r e a s e Number of banks a t end of year 1922 192U 1923 1925 1926 1928 1927 1930 Year Period 29,230 29,037 28,834 2S,4o4 27.737 2 7 , 2 4 i 26,299 2 5 , ^ 7 24,721 23,715 29,230 60 4li ill 46 1+60 65 1*9 3S7 110 28 4c6 79 22 345 165 14 302 129 18 252 52 15 238 70 9 147 161 6 3,^23 1,027 267 620 568 57U 525 507 524 449 319 317 31* 4,717 1 1 2 3^3 392 625 327 2 59 578 364 4 ^7 46i 305 2 80 73S 372 926 46l 635 565 2 72 479 532 813 771 1,004 1,192 1,003 1,466 l,26l 1,085 193 203 430 667 942 812 766 ^75 1+96 1 1 16 6o4 68 58 629 • 1 , 2 9 0 *6,704 767 4 , 7 2 0 635 2,126 12,044 1,323 1,006 1,812 7.327 29.037 28,834 28,4o4 27.737 27,241 26,299 25,487 24,721 23,715 21,903 21.903 A discrepancy of 2 e x i s t s "between these f i g u r e s and those i n the suspension t a b l e s . in the revised f i g u r e s . 1929 This w i l l "be adjusted 03 A P P E N D I X III NUMBER OF PEIMARY ORGANIZATIONS ACCORDING TO SIZE OP CAPITAL STOCK Araotmt of <capital s1bock $25,000 $50,000 $100,000 $500,000 to to to to to.qqq qq.qqq Uqq.^qq qqq.qqq Year Less than $25,000 1921 102 158 85 119 6 5 H75 1922 7* 1U0 82 111 3 1 Hll 1923 69 138 117 120 7 9 H60 192U 79 131 66 101 5 5 387 1925 72 108 * 127 1 k U06 1926 37 90 69 130 9 10 3^5 1927 27 & 63 108 6 302 1928 25 85 kl 90 5 6 252 1929 28 9i Ho 7* 19 13 238 1930 28 W J5 37 1+ 5ta 1.0U2 682 1,017 73 Total ih $1,000,000 and over _i 68 Total 1*7 3,^23 A P P E N D I X IT NUMBER OF PRIMARY ORGANIZATIONS ACCORDING TO SIZE OP TOWN Population of town 5,000 10,000 100,000 1,000 to to to and Total 5.000 10.000 100.000 over Year Less than 1.000 1921 178 131 33 55 78 ^75 1922 133 106 33 62 77 Hll 1923 12U 151 31 57 97 U60 1924 118 118 25 kG 80 387 1925 112 llU Ho 77 63 U06 1926 81 96 20 68 80 3U5 1927 7^ 90 22 *3 73 302 1928 76 73 19 32 52 252 1929 5* 71 19 25 69 238 1930 1+8 37 16 13 33 1H7 998 987 258 U78 702 3.^23 Total A P P E N D I X V NUMBER OP BANK CONSOLIDATIONS Year 1900 1901 1902 1901 1904 1905 1906 1907 190S 1909 1910 1911 1912 1913 19W 1915 Number of consolidations 20 1+1 50 373 £69 56 5* 97 80 126 115 135 113 145 146 Year 1916 1917 1918 1919 1920 1921 1922 1923 1924 1925 1926 1927 1928 1929 1930 Number of consolidations 136 125 113 178 172 293 3S3 319 365 359 452 553 512 601 735 Sources: Figures for 1900 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 1930 inclusive were compiled by the Federal Heserve Committee on Branch, Group, and Chain Banking. o A P P E N D I X VI NUMBER OP BANKS IN 1920 DISTRIBUTED BY SIZE OP LOANS AND INVESTMENTS AND GEOGRAPHIC DIVISIONS Size Groups Loans and investments in thousands of dollars New England MidSouthSouth South West- Rocky Pa«* North ern dle At- Cen- Moun- East- lest- ern Moun- cific Total lan- tral tain ern ern Grain tain Coast tic Under $150 17 9S 552 512 817 1,063 2,623 463 191 6,336 150 to 250 30 l46 833 33^ 492 631 2,053 323 I85 5,027 250 to 500 87 481 1,367 483 596 776 2,463 340 322 6,915 500 to 750 9^ 365 694 203 285 857 153 194 3,159 750 to 1,000 7^ 3U2 432 133 142 144 357 79 108 1,811 1,000 to 2,000 171 661 596 178 22-7 172 410 113 201 2,729 2,000 to 5,000 164 472 323 72 100 108 149 81 104 1,573 5,000 to 10.000 53 181 101 37 17 24 *3 17 35 508 10,000 to 50,000 33 131 72 17 IS 23 32 4 39 36? 6 36 IS ••• •• • 1 5 6 72 50,000 and over Total 729 2,913 4,988 1,969 ••• 2,694 3.256 8*992 1,573 1,385 28,495 A P P E N D I X VII NUMBER OF BANKS IN I93O DISTRIBUTED BY SIZE OE LOANS AND INVESTMENTS AND BY GEOGRAPHIC DIVISIONS Size Groups Loans and investments in thousands of dollars New England MidSouthSouth South West- Rocky Padle North ern At- Cen- Moun- East- West- ern Moun- cific Total ern ern Grain tain Coast lan- tral tain tic Under $150 16 31 627 407 564 884 1,970 210 130 4,839 150 to 250 11 109 SOU 282 267 460 1.275 166 136 Ul2 1.255 380 327 559 1.513 229 247 4,966 250 to 500 3.510 500 to 750 67 36O 646 223 169 208 483 90 ll6 2,362 750 to $.#OQO 56 319 421 116 101 126 263 61 89 1.552 1,000 to 2,000 170 797 683 197 151 119 283 68 132 2,600 2,000 to 5,000 204 733 U07 90 84 80 146 57 86 1,887 5,000 to 10,000 75 236 135 29 17 31 35 16 22 596 10,000 to 50,000 & 186 86 31 18 26 23 11 18 453 48 20 •• • 2 3 7 •• • 15 101 50,000 and over Total 6 703 3.231 5,084 1.755 1.700 2,1+96 5.998 90S 991 22,866 F e d e r a l Reserve Committee on Branch, Group and Chain Banking A P P E N D I X Form A-5 VIII State Date of change BAM CHANGES DURING I92I-I93O Report on a s e p a r a t e copy of t h i s form each c o n s o l i d a t i o n , l i q u i d a t i o n primary o r g a n i z a t i o n , e t c . , and check i n t h e space a t the r i g h t t h e k i n d of c h a n g e . City or town PopulaName tion* Names of all "banks and trust companies, of any kind, involved in this change Total PaidLoans in and inrecapital vestments sources (OOd's omitted) Name or names before change KIND OF CHANGE: Consolidation Liquidation Primary organization Conversion of •orivate tank Conversion to •private "bank Name or names after change NET CHANGE IN NUMBER 07 STATE INSTITUTIONS Increase Decrease Newly organized (primary) I f above c l a s s i f i c a t i o n s a r e n o t s e l f - e x p l a n a t o r y , p l e a s e u s e r e v e r s e s i d e f o r *As g i v e n i n t h e b a n k e r s d i r e c t o r y a t t h e time t h e change o c c u r r e d . details. (',3 November 6, 1931 Federal Reserve Committee on Branch, Group and Chain Banking BANK SUSPENSIONS Preliminary material subject to revision ocJ BANK SUSPENSIONS Daring t h e t e n - y e a r p e r i o d 1921-1930 a t o t a l of 7.029 "banks suspended in the United S t a t e s . This was n e a r l y two and o n e - h a l f t i n e s the number s u s - pending d u r i n g t h e p r e v i o u s twenty-nine y e a r s , p r i o r t o which BED r e l i a b l e s t a t i s t i c s are available. In t h e f i r s t n i n e months of 1931 an a d d i t i o n a l 1,23*+ "banks were c l o s e d "because of f i n a n c i a l d i f f i c u l t i e s . This e x t r a - ordinary i n c r e a s e i n t h e m o r t a l i t y r a t e f o r "banks i n the p a s t decade a s c o n p a r e d w i t h p r e v i o u s y e a r s i s i l l u s t r a t e d i n Charts 1 and 2 and i n Table 1. A n a l y s i s of Suspensions 1921-1930 Geographic d i s t r i b u t i o n : Tables 2 to 5 and Charts 3 t o k i l l u s t r a t e the e x t e n t t o which suspensions d u r i n g 1921-1930 were c o n c e n t r a t e d in a g r i cultural regions. N e a r l y t w o - t h i r d s of t h e t o t a l , for example, o c c u r r e d i n the South E a s t e r n s t a t e s and t h e Western Grain s t a t e s , two groups which a g g r e g a t e t h i r t e e n a g r i c u l t u r a l s t a t e s . In the South E a s t e r n s t a t e s t h e suspensions i n t h e t e n y e a r s amounted t o n e a r l y f o r t y - s i x for every hundred a c t i v e "banks i n 1920 a s compared w i t h only 2^ p e r hundred i n the New England and Middle A t l a n t i c s t a t e s . r a t i o was t h i r t y - t h r e e p e r hundred. more p e r hundred. In t h e Western Grain s t a t e s t h e In s i x s t a t e s the r a t i o was f i f t y or In F l o r i d a i t was n i n e t y - o n e per hundred, i n South Dakota s i x t y - f i v e p e r hundred and i n South Caroline, f i f t y - s i x p e r hundred. In 1 9 3 1 . however, and to a l e s s e r e x t e n t i n 1930, t h e r e has "been a noteworthy i n c r e a s e i n s u s p e n s i o n s in i n d u s t r i a l and s e m i - i n d u s t r i a l states. Table 5. for example, shows t h a t 30 p e r c e n t of fill tho s u s p e n - s i o n s d u r i n g the f i r s t n i n e months of 1931 o c c u r r e d i n t h e North C e n t r a l s t a t e s a s compared w i t h only 9 p e r cent during 1921-1930. 40 The North Central s t a t e s include Michigan, Wisconsin, I l l i n o i s , Indiana, and Ohio. Likewise about 9 Ver cerL,t o f the 1931 suspensions have been in the Middle Atlantic s t a t e s as corpared with 1 per cent for the previous ten years. Size of suspending hanks: Tables 6 to 9 and Charts 5 to 11 indicate the extent to which suspensions have occurred among i n s t i t u t i o n s of s n a i l size. Eighty-four per cent of a l l hanks suspending in 1921-1930 had loans and investments of l e s s than $500,000. For hanks with loans and i n v e s t - ments of l e s s than $150,000 the r a t i o of suspensions 1921-1930 to active banks in 1930 was f o r t y - f i v e per hundred. This r a t i o of suspensions to active banks declines rapidly with the increase in the size of banks. For banks with loans and investments ranging fron $2,000,000 to $5,000,000 the r a t i o was only seven per hundred and for banks of $5°.000,000 and over i t was only one and a half per hundred. Size of towns; (Table 8) Tables 10 and 11 and Charts 12 and 13 give the d i s t r i b u - t i o n of suspensions by size of towns. Thirty-eight per cent of suspen- sions in the ten-year period were in towns of l e s s than ^00 population and 73 P°r cent were in towns of l e s s than 2,500. people. The r a t i o of suspensions to active banks in towns of l e s s than 500 was thirty-one per hundred. This r a t i o declines to t h i r t e e n per hundred in c i t i e s of 100,000 population and over. Disposition, of suspended banks: Table 12, giving the disposition of sus- pended banks, shows t h a t out of 6,706 suspensions of s t a t e and national banks 1,105 reopened, 225 wore taken over by other i n s t i t u t i o n s and the d i s p o s i t i o n of 187 was not recorded. The remainder were placed in r e - ceivership, of which 1,397 had "been completely l i q u i d a t e d at the time the schedules were prepared. Payments to depositors: Tables 13 to 16 indicate the claims realiBed "by depositors in suspended hanks and the losses sustained. In 1,25*+ completely liquidated hanks the general depositors received about 56 per cent of t h e i r claims, exclusive of o f f s e t s . S e l l a b l e figures for secured and preferred claims a r e not a v a i l a b l e hut in most cases theywcro p r e sumably paid in f u l l . Sources The Committee has compiled these figures on suspensions back to 1892 from various sources, and although an effort has been made to secure them on a comparable b a s i s for each year, there are certain defects in the e a r l i e r s t a t i s t i c a l records which make i t impossible to secure uniform accuracy throughout the period. P r i o r to the second decade of t h i s cen- tury many s t a t e s kept inadequate banking records and in some s t a t e s i t i s only within comparatively recent years that r e l i a b l e s t a t i s t i c s a r e available. Schedule on suspensions. 1921-1930: For the years 1921-1930 the figures were compiled by the Committee on Branch, Group and Chain Banking from schedules prepared for the purpose of providing b a s i c data for a d e t a i l e d analysis of suspensions during 1921-1930. I t i s a four page schedule c a l l i n g for some forty or f i f t y items cf information regarding each bank suspending in that p e r i o d . A copy of that schedule i s attached hereto at the ond of the s t a t i s t i c a l t a b l e s as Appendix I I I . For n a t i o n a l "bank suspensions the schedules were prepared in the office of the Comptroller of the Currency, and for s t a t e "bank suspensions they were prepared in the State banking departments, e i t h e r by the staff of the department or by a representative of the Federal reserve bank of the d i s t r i c t . On the whole the r e s u l t s were satisfactory although no s t a t e was able to supply a l l the information requested, and due to differences in records and methods of accounting, some of the data were not s t r i c t l y comparable for the d i f f e r e n t s t a t e s . After making the necessary allowances and adjust- ments, however, the figures regarding s t a t e and national banks a r e suff i c i e n t to present a comprehensive p i c t u r e . Suspensions, as defined by t h e Committee, include a l l banks closed to the public e i t h e r temporarily or permanently by supervisory a u t h o r i t i e s or by boards of d i r e c t o r s on account of financial difficulties. The s t a t i s t i c s include, therefore, not only those banks placed i n receivership but also those which closed and l a t e r reopened or were taken over by other i n s t i t u t i o n s without the intervention of r e c e i v e r s . The Committee's figures on suspensions d i f f e r somewhat from the records of the Comptroller of the Currency on bank f a i l u r e s which embrace only those closed banks for'which receivers have been appointed. They also differ s l i g h t l y from the figures compiled for the same period by the Federal Reserve Board due to revisions in the preliminary figures reported to the Board. Sometimes a closing may be reported o r i g i n a l l y as a l i q u i d a t i o n or consolidation but upon more complete i n formation may be classed as a suspension, and vice versa. For the 323 p r i v a t e "bonk suspensions l i t t l e information of value was secured by the Committee due to the fact t h a t i n many s t a t e s p r i v a t e hanks a r e not under the supervision of any public authority and no records are a v a i l a h l e . Therefore, the a n a l y s i s of suspensions during 1921-1930 "beginning with Table 2 and Chart k i s "based on national and State "bank suspensions only, including t r u s t companies and stock savings banks. are excluded. P r i v a t e hanks That accounts for the f a c t that in these tables the t o t a l number of suspensions for the ten years i s given as 6,706 instead of 7,029 as shown in Table 1 which includes p r i v a t e banks. In one table the number of suspensions in the f i r s t nine months of 1931 bas been given, but t h e Committee has not asked for schedules to be prepared for t h i s y e a r ' s suspensions because of the delay which t h i s would e n t a i l . With the exception of the one t a b l e , therefore, the analy- s i s i s limited to the ten years, 1921-1930. Sources for p r i o r y e a r s : For the years 1900 to 1920 the number and r e - sources of suspended s t a t e and national banks were taken in p a r t from the Banking Inquiry of 1925 prepared under the d i r e c t i o n of Dr. H. Parker W i l l i s , and in p a r t from B r a d s t r e e t ' s Commercial Agency. The d e f i n i t i o n of a " f a i l u r e " in the Banking Inquiry approaches very closely what the Committee designates a "suspension," and i t i s believed the s t a t i s t i c s are roughly comparable to those compiled by the Committee for l a t e r y e a r s . F a i l u r e s t a t i s t i c s for some s t a t e s , especially in the early 1900's,were not included in t h i s inquiry, however, because the records were not a v a i l a b l e in the State banking departments. I t was necessary, therefore, for the Committee to supplement the figures for c e r t a i n s t a t e s by uno f f i c i a l data taken from B r a d s t r e e t ' s Commercial Agency. Statistics on p r i v a t e hank f a i l u r e s for the e n t i r e period, 1900-1920, were l i k e wise taken from B r a d s t r e e t ' s . For the years 1892-1899 the figures were taken from the annual reports of the Comptroller of the Currency. Here again the s t a t i s t i c s of s t a t e and p r i v a t e "bank f a i l u r e s were supplied o r i g i n a l l y by B r a d s t r e e t ' s Commercial Agency. The figures for national banks during that period represent " f a i l u r e s , " according to the Comptroller's usage, r a t h e r than suspensions and to that extent are not s t r i c t l y comparable with the data for l a t e r y e a r s . In s p i t e of t h e d i f f i c u l t i e s of securing s t r i c t l y comparable data, however, i t i s believed that the discrepancies i n the figures as comp i l e d are not s u f f i c i e n t l y great to affect appreciably long term comparisons. CHART 1 NUMBER OF BANK SUSPENSIONS IN THE UNITED STATES NUMBER IStt-193© 1500 Total nuaber of suspensions of national, State and private banks, each year from 1892 to 1930 NUMBER CHART 2 RATIO OF SUSPENSIONS TO ACTIVE BANKS PERCENT PERCENT Suspensions of national, State and private banks per hundred active banks each year from 1892 to 1930 T&Wel- ACTIVE BANKS AMD SUSPENSIONS Each Year from 1692 to I93O Active tanks Year Number 1S92 1891 1894 1895 I896 I897 1898 I899 1900 1901 1902 1903 1904 1905 1906 1907 1908 1909 1910 1911 1912 1913 1914 1915 1916 1917 191s 1919 1920 1921 1922 1923 1924 1925 1926 1927 192S 1929 1930 8,695 8,843 8,862 3,15^ 8,792 8,791 8,825 9,076 9,727 10,731 11,742 13,000 14,151 15,710 17,195 19,032 20,627 21,804 22,420 23,708 24,513 25,324 26,080 26,381 26,838 27,2% 28,194 28,442 29,458 30,125 29,706 29,494 2S,66s 28,162 27,^61 26,376 25,529 24,649 23,406 Resources (000 omitted) $ 5,639,984 5,489,787 5.599,177 5,852,759 5.703,993 5,915.290 6,602,934 7,754,06s 8,445,868 9,857,874 10,733,SH 11,538,429 12,335,270 13,907,329 14,973,055 16,324,072 16,202,105 17,641,526 18,735,686 19,798,353 20,976,959 21,536,22s 22,640,618 23,400,652 27,611,836 32,175,454 35,702,199 42,155,674 45,890,033 ,43,312,593 43,795,S65 46,859,366 49.4s9.Us5 53,846,716 56,165,162 58,813,187 61,540,994 61.799,350 63,406,014 Per cent of banks su^ocndins Suspensions Number 86 477 S3 115 13 ? 154 61 35 35 66 53 52 123 80 52 89 151 I85 7S 101 150 151 53 fi 62 150 496 362 647 772 614 976 660 497 Resources (000 omitted) $ 25,350 123,ss6 15,446 23,933 22,194 59,087 12,238 10,209 6-,993 28,039 14,664 20,091 43,255 29,036 31,724 184,131 86,024 34,773 33,243 31,085 19,923 27,69s 47,267 60,440 16,015 20,531 is,090 24,bSl 93,373 252,396 141,592 221,511 307,030 233,670 346,276 270,456 187,242 305,l6S 1,184,248 Number 1.0 5.4 •9 1.3 1.5 1.8 .7 .4 .4 .6 *P # *T •9 •5 •3 •5 .7 .3 .2 .4 i .6 .6 .2 .2 .2 .2 •5 1.6 1.2 2.2 2.6 2.2 3-5 2.5 1.9 2.7 Resources .4 2.3 •i .4 1.0 .2 .1 .1 •3 .1 .2 .4 .2 .2 1.1 .5 .2 .2 .2 .1 .1 .2 •3 .1 .1 .1 .1 .2 .6 •3 •5 .6 .4 .6 .5 •3 .5 1.9 657 5.7 1,348 Sources: Active banks 1892-1930 and suspensions 1892-1899 from annual reports of the Comptroller of the Currency; suspensions 1900-1920 from Banking Inquiry of 1925 prepared under the supervision of Dr. H. Parker Willis, supplemented by unofficial data taken from Bradstreet's Commercial Agency; suspensions 1921-1930 compiled by the Federal Reserve Committee on Branch, Group and Chain Banking froir. schedules prepared by the State Banking Departments and the Comptroller of the Currency, and from the tabulations of the Federal Reserve Board regarding private bank suspensions. CD GEOGRAPHIC DISTRIBUTION OF SUSPENSIONS 1921-1930 50 CHART 3 BANK SUSPENSIONS DURING 1921-1930 Table 2 - B A M SUSPENSIONS BY GEOGRAPHIC DIVISIONS* 1921 - 1930 National "banks Geographic Divisions** Number Total - National and Sta1;e banks Loans and Loans and investinvestments ments Number (000 (000 omitted) omitted) State banks Loans and investNumber ments (000 omitted) k M& Ik H2,U2 18 U6.976 Middle Atlantic States 29 25.732 *3 353.6^8 72 379,^10 North Central States 7S 53.0U6 55U 251,723 632 30^,769 Southern Mountain States 25 65,2^8 250 11^,055 275 179,303 South Eastern States 110 103,373 1,125 ^33,797 1,235 537,170 South Western States 155 86,072 657 167,676 812 253,7^8 Western Grain States 3U6 168,519 2,619 598,^71 2,965 766,990 Hooky Mountain States ite 81,826 M3 106,^76 555 188,302 3S 3^,369 IOM- 927 623,0^9 5,779 New England States Pacific Coast States .UNITED STATES » 61,51*2 2,129,530 lk2 95,911 6,706 2,752,579 * Exclusive of private bank suspensions. ** The figures for each state in these geographic divisions are given in Appendix I attached hereto. 52 CHART 4 GEOGRAPHICAL DISTRIBUTION OF BANK SUSPENSIONS DURING TEN YEAR PERIOD. 1921-1930 INCLUSIVE Table 3 - NUMBER OF SUSPENSIONS DURING 1921-1930 PER HUNDRED ACTIVE BANKS ON JUNE 30, 1920 Geographic Divisions* National hanks State hanks Total National and State hanks New England States 1.0 u.u 2.5 Middle Atlantic States 1.7 3.5 2.5 North Central States 5,7 15.3 12.7 Southern Mountain States U.S 17.2 1U.0 South Eastern States 24.7 50.0 ^5.8 South Western States 15.1 29.5 24.9 Western Grain States 21.9 35.3 33.0 Rocky Mountain States 27.4 39.2 35.3 7.9 11.5 10.3 11.6 28.2 23.5 Pacific Coast States UNITED STATES *See Appendix I for names of states in these geographic divisions. > Table 5 - NUMBER OF STATE AND NATIONAL BANK SUSPENSIONS BY GEOGRAPHIC DIVISIONS 1921-1930 Geographic Divisions* Number 1931 (9 months) Per cent of total suspensions Number Per cent of total suspensions New England States 18 .3 2 .2 Middle Atlantic States 72 1.1 105 2.9 North Central States 632 9.* 357 30.3 Southern Mountain States 275 H.i 72 6.1 South Eastern States 1,235 18.1+ 132 11.2 South Western States 812 12.1 70 5.9 Western Grain States 2,965 m.2 385 32.6 Rocky Mountain States 555 8.3 30 2.5 Pacific Coast States 1U2 2.1 27 2.3 6,706 100.0 1,180 100.0 UNITED STATES •See Appendix I for names of states in these divisions. 56 SIZE OF SUSPENDING BANKS 1921-1930 &? Table 6 - PERCENTAGE DISTRIBUTION OF SUSPENDED BANES BY SIZE GROUPS 1921 - 1930 National bank suspensions Loans and investments Per cent of number State bank suspensions Per cent Per cent of loans of and in- number vestments National and State bank suspensions Per cent Per cent of loans of and innumber vestments Per cent of loans and investments Under $500,000 66.7 26.0 S6.7 39.4 83.9 36.4 500,000 - 999,999 17.7 18.3 3.8 16.4 10.0 l6.g 1,000,000 - U,999,999 lk.k 37.9 4.1 20.8 5.5 24.6 1.2 17.S 0.4 23.4 0.6 22.2 100.0 100.0 100.0 100.0 100.0 100.0 5,000,000 and over Total •3 T a b l e 7 — VttBBSS&JSl DISTRIBUTION OF THE WMBM OF ACTIVE BANKS IN 1920 AND THE NUMBER OF SUSPENSIONS DURING 1 9 2 1 - 1 9 3 0 BY SIZE GROUPS National and State banks Per cent Per cent Per cent Per cent Per cent Per cent of total of total of total of total of total of total suspenactive active suspensuspen- active sions banks banks sions banks sions 6-10-1920 iq21-iqTO 6-10r-iq20 1921-19-SO 6-10-1920 1921-1910 National banks Loans and investments State banks Under $500,000 39.0 66.7 7^.0 S6.7 64.2 83.9 500,000 - 999,999 27.2 17.7 13.6 8.8 17.4 10.0 1,000,000 - M-,999,999 27.8 1U.1+ 10.1 k.l 15.1 5.5 5,000,000 and over 6.0 1.2 2.3 O.k 3*3 0.6 Total 100.0 , 100.0 100.0 100.0 100.0 100.0 PER CHART 5 SUSPENSIONS PER HUNDRED ACTIVE NATIONAL BANKS HUNDRED GROUPED BY SIZE OF LOANS AND INVESTMENTS PER HUNDRED Number of national bank suspensions during 1921-1930 per hundred active national banks oh June 30, 1920, grouped by s i z e of loans and investments CHART 6 SUSPENSIONS PER HUNDRED ACT1YE STATE BANKS or a HUNDRED GROUPED BY SIZE OF LOANS AND INVESTMENTS PER HUNDRED 50 Number of S t a t e bank suspensions during 1921-1930 p e r hundred a c t i v e S t a t e banks on June 30, 1920, grouped by s i z e of loans and investments CHART 7 SUSPENSIONS PER HUNDRED ACTIVE NATIONAL AND STATE BANKS GROUPED BY SIZE OF LOANS AND INVESTMENTS PER HUNDRED u n w u r i , , / " " *Jitml' Vl *•*»«"•» " " « Number of n a t i o n a l and d u r i n g 1921-1930 per on June 30, 1920, of loans and U " W I ™ I -« I *» p E R HUNDRED S t a t e bank suspensions hundred a c t i v e banks grouped by s i z e investments Table 8 - SUSPENSIONS DURING 1921-1930 PER HUNDRED ACTIVE BANKS, ON JUNE 30, 1920, BY SIZE GROUPS Size groups Loans and investments in thousands of dollars National and State banks National banks State banks Under $150 33.3 ^.k UI4-.7 150 to 250 21*. 9 27.7 27.3 25O to 500 15.5 22.8 20.6 500 to 75O 8.6 18.7 lU.5 750 to 1,000 5.9 17.2 11.8 1,000 to 2,000 7.1 12.2 9.5 2,000 to 5,000 h.i 10.0 6.9 5,000 to 10,000 3.5 5.6 M 10,000 to 50,000 1.1 5.9 3.5 50,000 and over 0.0 2.9 1.U All hanks n.6 28.2, 23.5 63 CHART 8 SUSPENSIONS PER HUNDRED ACTIVE NATIONAL AND STATE BANKS GROUPED BY SIZE OF LOANS AND INVESTMENTS Number of national and State bank suspensions during 1921-1930 per hundred active banks on June 30, 1920, grouped by size of loans and investments Table 9 - SUSPENSIONS OF NATIONAL AND STATE BANKS DURING 1921-1930 PER HUNDRED ACTIVE B A M S ON JUNE 30, 1920, BY SIZE GROUPS Size Groups Loans and investments in thousands of dollars New Middle North South- South South West- Rocky ern EngCenEast- Western Moun- Pacific AtMounCoast land lantic tral ern ern Grain tain tain States States States States States States States States States Under $150 0.0 5.1 29.3 21.5 65.6 39.7 50.1 51.6 22.5 150 to 25O 3.3 3* l6.7 14.1 4l.7 19.3 3^.7 35.6 13.0 25O to 500 1.1 3.3 12.6 13.3 42.8 19.7 25.3 29.7 12.7 500 to 750 2.1 M 9.1 11.3 28.8 l4.6 20.7 24.8 4.1 750 to 1,000 1.4 0.9 8.3 8.3 30.3 18.1 17.9 30.4 5.6 1,000 to 2,000 3.5 1.1 6.5 6.2 32.6 16.9 12.9 26.5 5.5 2,000 to 5,000 3.0 1.9 5.6 6.9 32.0 10.2 10.7 8.6 5.8 5,000 to 10,000 1.9 3.3 3.0 0.0 23.5 8.3 9.3 5.9 5.7 10,000 to 50,000 3.0 1.5 0.0 23.5 22.2 4.3 0.0 0.0 2.6 50,000 and over 0.0 2.8 0.0 0.0 0.0 0.0 0.0 0.0 0.0 2.5 2.5 12.7 i4.o 45.8 24.9 33.0 35-3 10.3 All banks CHART 9 LOANS AND INVESTMENTS 0F5U5PENDED BANKS PER HUNDRED DOLLARS OFLOANS AND INVESTMENTS OF ACTIVE BANKS PER HUNDRED PER HUNDRED 50 Loans and investments of national and State banks suspending during 1921-1930 per hundred dollars of loans and investments of aotive banks on June 30, 1920, Banks are grouped by size of loans and investments. 50 CHART 10 SUSPENSIONS PER HUNDRED ACTIVE NATIONAL AND STATE BANKS « W « K D BY SIZE OF CAPITALSTOCK PER HOKEO 40 ~ -" ~ _ . - Number of national and State bank suspensions during 1921-1930 per hundred active banks on June 30, 1920, grouped by size of oapital stock 67 CHART 11 SUSPENSIONS PER HUNDRED ACTIVE NATIONAL AND STATE BANKS GROUPED BY SIZE OF CAPITAL STOCK Number of national and State bank suspensions during 1921-1930 per hundred active banks on June 30, 1920, grouped by size of caDital stock 68 SIZE OP TOWNS WHERE B A M S SUSPENDED 1921-1930 Table 10 - CLASSIFICATION OF BANKS SUSPENDING DURING 1921-1930, BY SIZE OF TOWNS* Population of towns Number of suspensions Per cent of total suspensions Less than 500 2,516 3S 500 to 999 1.351 20 1,000 to 2,1*99 1.3^8 20 2,500 to 4,999 559 8 5,000 to 9,999 289 4 10,000 to 24,999 254 k 25,000 and over 389 6 6,706 100 Total * Includes only national and state bank suspensions. 70 CHART 12 SUSPENSIONS PER HUNDRED ACTIVE NATIONAL AND STATE BANKS GROUPED BYSIZEOFTOWNS Number of national and State bank suspensions during 1921-1930 per hundred active banks on June 30, 1920, grouped by size of towns Table 11 - RATIO OP SUSPENDED BANKS TO ACTIVE BANKS, GROUPED BY POPULATION OF TOWNS* Population of towns Number of suspensions 1921-1930 per hundred active banks on June 30, 1920 Loans and investments of suspended banks 1921-1930 per hundred dollars of loans and investments of active banks on June 30, 1920 Less than 500 31.2 22.3 500 to 999 26.7 19.2 1,000 to 2,^99 23.9 16.9 2,500 to 4,999 18.5 12.8 5,000 to 9,999 ik.k 10.7 10,000 to 24,999 *.7 9.7 25,000 to ^9,999 10.9 5.4 50,000 to 99,999 16.0 7.5 100,000 and over 12.7 3.5 Average 23.5 7.6 •State and National banks. CHART 13 SUSPENSIONS PER HUNDRED ACTIVE NATIONAL AND STATE BANKS GROUPED BY SIZE OFTOWNS Number of national and State bank suspensions during 1921-1930 per hundred active banks on June 30, 1920,grouped by size of towns 73 DISPOSITION OP SUSPENDED BANKS 1921-1930 •labfc lc •• iISx-C3IT:0H OF SUSPENDED BAMS, STATE MD NATIONAL, 1921-1930 Number Geographic Divisions Reopened Taken over Percentage of t o t a l In proComcess of p l e t e l y liquiliquidation dated Disposition not recorded Total Reopened Taken over In p r o Comcess of p l e t e l y liquiliquidation dated Disposition not recorded 3 0 18 11.1 0.0 72.2 16.7 0.0 11 0 72 16.7 6.9 6l.l 15.3 0.0 390 ^5 2 632 23.1 7.8 61.7 7.1 0.3 21 190 36 0 275 10.2 7.6 69.I 13.1 0.0 218 33 7^8 176 60 1,235 17.7 2.6 60.6 1^-3 k.8 South Western 167 51 i+01 192 1 812 20.6 6.U 14-9.1*. 23. U 0.2 Western Grain U6H UU 1,813 622 22 2.965 15.6 1.5 61.2 21.0 0.7 Rocky Mountain 50 16 139 2Ug 102 555 9.0 2.9 25.0 UU.7 18 A ^pacific Coast 18 6 5* 6U 0 1U2 12.7 k.2 38.0 ^5-1 0.0 1,105 225 3,792 1,397 187 6,706 16.5 3.4 56.5 20.8 2.8 2 0 12 5 1U6 k3 28 South Eastern liew England Middle A t l a n t i c Horth Central Southern Mountain UNITED STATES 13 Kl 75 PAMENTS TO DEPOSITOHS OF SUSPENDED BANKS AND LOSSES SUSTAINED 1921-1930 Table 13 - REOPENED AND TAKEN-OVER BANKS GROUPED ACCORDING TO PERCENTAGE OF C U I M S REALIZED BY DEPOSITORS National banks* State banks* National and State banks 0 to 19$ 0 6 6 20 to 39 »-» Percentage of claims realized 30 31 1+0 to 59 7 S7 9^ 60 to 79 17 97 III+ 80 to 99 9 39 1+8 119 787 906 153 1,046 1,199 100 Total * Information as to claims realized by depositors in 1 national bank and I3O State banks was unavailable. Note:- The above are those banks suspending during 1921-1930 which had been reopened or taken over by other institutions at the time the schedules of information were prepared for the Committee, with the exception of the 131 banks for which information is not available. Table lH - TOTAL ESTIMATED LOSSES T6 DEPOSITORS OF SUSPENDED BANKS WHICH WERE REOPENED OR TAKEtf OVER Geographic divisions New England State National National and banks banks State banks (OOO omitted) (000 omitted) (000 omitted) $ 0 $ 0 $ 0 Middle Atlantic 302 0 302 North Central 215 6,392 6,607 0 523 523 South Eastern 2Ud 7,300 7,5^0 South Western 925 1,507 2,^32 Western Grain 1,0^6 31.063 32,109 Rocky Mountain 1,377 i,i4o 2,517 Pacific Coast 1&3 1+18 2,051 U8,3^3 5^,081 Southern Mountain Total 5.73S Note:- The above are those banks suspending during 1921-1930 which had been reopened or taken over by other institutions at the time the schedules were prepared for the Committee. Table 15 - CLAIMS REALIZED BY DEPOSITORS IN COMPLETELY LIQUIDATED NATIONAL AND STATE BANKS BY GEOGRAPHIC DIVISIONS (000 omitted from dollar amounts) Geographic divisions ! State banks National L banks 1 Per Per 1 PayPaycent cent ments ments of Genof Number Number Genon on Payeral payof of eral gengenments banks** claims*. eral ments banks claims* eral to to claims* claims* claims claims New England 1 279 187 67.P 1 1,822 1,822 100.0 Middle A t l a n t i c 3 2,381 1,885 79.2 4 8I+3 791 93.8 North Central 8 M71 2,757 59.0 30 5,677 3.891 68.5 Southern Mountain 2 366 332 90.7 13 i,405 l,06l 75.5 South Eastern 21 3,288 1,802 5^.8 139 1^,987 6,1+93 ^3.3 South Western 50 17,167 7,787 ^5.3 99 9,577 4,752 1+9.6 Western Grain 83 20,397 10,324 50.6 523 81,023 1+5,006 55-5 Rocky Mountain 86 17.449 7,4l8 U2.5 128 16,911+ 9,832 58.1 Pacific Coast 13 2,1191 1,5^2 61.9 50 23,671+ 17,451 73.7 68,1+89 3^,031+ ^9.7 987 155,922 9L099 58.4 UNITED STATES 267 * Exclusive of offsets., * Information as to claims and payments for ll+3 completely liquidated State banks is not available. Note:- The above are those banks suspending during 192I-I93O which had been completely liquidated at the time the schedules of information were prepared for the Committee, with the exception of the ll+3 banks for which information is not available. Table l6 - AVERAGE PER CENT OF CLAIMS REALIZED BY DEPOSITORS IN 1,25U COMPLETELY LIQUIDATED NATIONAL AND STATE BANKS, GROUPED BY SIZE OF TOWN Population of towns Number of banks completelyliquidated* 35.607 49.1# 72,004 37,450 52.0 4o 13,210 7,083 53.6 31 24,242 16,480 68.0 42,398 28,513 67.3 224,411 125,133 55.7 Under 1,000 784 1,000 to 4,999 3U2 5,000 to 9,999 10,000 to 24,999 25,000 and over All groups- * ** Average General Payments per cent of claims to general claims claimants** allowed** realized by (000 omitted) (000 omitted) depositors L25H $ 72,557 $ Information as to claims and payments for l43 State banks is not available. Exclusive of offsets. Note:- The above are those banks suspending during 1921-1930 which had been completely liquidated at the time the schedules of information were prepared for the Committee, with the exception of the l43 State banks for which information is not available. Table. 17 - EXPENSE OF LlqtJiMtfiNG StfSPEKBED NATIONAL BANKS* Geographic divisions Number of banks Total Per cent Expenses resources Per cent Total of of exat time collecof exliquidapenses to of sustions penses to tion total pension (000 total re(000 collecsources omitted) (000 omitted) tions omitted) ? ••• •.• 3.6 2,220 5*o 206 3.S ^,038 5.1 501 31 6.2 517 6.0 21 7,086 36U 5.1 3,756 9.7 South Western 50 29,009 1,197 ^.1 16,578 7.2 Western Grain S3 3L707 1,7^5 5.5 18,680 9.3 Hocky Mountain 86 36.1U6 1,915 5.3 19,867 9.6 Pacific Coast 13 5.87S 3^7 5.S ^,269 8.1 267 H9,07S 5,9^7 5.0 70,iUU 8.5 New England 1 Middle Atlantic 3 North Central Southern Mountain $ 150 ••• •• • 3.115 112 8 5,^86 2 South Eastern UNITED STATES $ * Compiled from annual reports of the Comptroller of the Currency. Note:- The above are those national banks suspending during 1921-1930 which had been completely liquidated at the time the schedules of information were prepared for the Committee. 81 APPENDICES A P P E N D I X BAHK SUSPENSIONS BY STATES AND GEOGRAPHIC DIVISIONS 1921 - 1930 States by Geographic Divisions Number New England Maine New Hampshire Vermont Massachusetts Bhode Island Connecticut 0 0 1 1 1 1 Total 1* 1* Middle Atlantic New York New JerseyDelaware Pennsylvania Maryland Total North Central Michigan Wisconsin Illinois Indiana Ohio Total Southern Mountain West Virginia Virginia Kentucky Tennessee Total State banks National banks Loans and investments (000 omitted) $ 0 0 1,138 29U 1.535 1,897 Number 2 1 1 Loans and investments (OGO omitted) * 5 1,235 1,1*75 1,014 19,681* 1,063 l7,6Ui 4,864 14 1*2,112 8 1 19 2 1,999 1.527 679 20,575 952 % 253,1^8 8,321 257 84,667 7,285 29 25.732 *3 353,678 4 2.72S 3,241 21,581 7,909 17,587 17 93 221 163 60 8,810 25,61*1* 108,516 68,6iq 1*0,134 7S 53,046 554 251,723 9 7,9*0 3,576 39.05^ istii*6 13,1*09 1*2,1*1*2 40,058 111*,O55 3 3 2 3 1 5 1M75 56 69 90 25 65,21*8 250 I 83 -2- States "by Geographic Divisions National banks Number South Eastern North Carolina South Carolina Georgia Florida Alabama Mississippi 23 26 19 20 15 Total South Western Louisiana Texas Arkansas Oklahoma Total Western Grain Minnesota North Dakota South Dakota Iowa Nebraska Missouri Kansas Total Rocky Mountain Montana Idaho Wyoming Colorado New Mexico Arizona Utah Nevada Total State banks Loans and investments (000 omitted) Number 189 226 Loans and investments (000 omitted) 6,759 59 7 8,038 103 79,282 68,066 65,4lS 166,552 18,771 35,708 110 103,373 1,125 ^33,797 2 62 20 71 2,033 ^1.996 10,085 53 3L95S 189 200 215 15,144 44,626 63,843 44,063 155 86,072 657 167,676 58 S 29,592 20,280 24,386 62,736 17,335 3,991 10,199 346 61 26 11 18 20 7? 5* 105 32 $ -24,887 14,763 20,276 28,650 33* 214 $ 383 247 86,109 59,980 100,774 15L376 67,996 81,057 51,179 168,519 2,619 598,471 23,868 16,325 150 46 3M91* 9,73*+ 50 $ 8? 38O 3 3 12,641 14,385 1,828 3,645 4i 29 19 0 0 3 13.781 9,328 12,727 12,992 14,231 5,103 3.^20 142 81,826 413 106,476 75 -3- States by Geographic Divisions Pacific Coast Washington Oregon California Total UNITED STATES National banks Number Loans and investments (000 omitted) Stat<3 banks Number Loans and investments (000 omitted) 6,679 1U.5S6 46 38 20 38 3^369 10*+ 6l,5l+2 927 623,01+9 5,779 2,129,530 12 8 IS $ 13,101+ $ 31,379 lM8f5 15,278 A P P E N D I X II SUSPENSIONS OF STATE AND NATIONAL BANKS DURING 1921-1930 PER HUNDRED ACTIVE BANKS JUNE 30, 1920 State Alabama Arizona Arkansas California Colorado Connecticut Delaware District of Columbia 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 Number of active banks June "SO. 1920 Number of suspensions 1921-19^0 Suspensions per hundred active banks 3^7 7* 37 482 720 396 139 32 220 38 3? 2 0 234 5.1 0.0 90.7 353 48.9 32.4 17.2 20.3 30.5 19.*+ 12.5 20.6 25S 722 222 1&1 879 1.712 1.3^3 585 267 118 236 271 653 1.508 1,647 423 % 6 72 257 178 522 261 73 55 2 r 0 1+ 21 52* 9.1 3 1 275 33 1.7 2.5 1.5 3.2 211 396 33 1,410 £3 29.2 32.7 24.0 1+12 959 5.3 mi no 1,196 SO 366 122 817 578 898 991 21.3 36.8 %.6 6 61 12 212 486 1$ 286 1+6 46 3 1.3 1.6 50.0 1.5 36.7 5^.1 7.5 29.8 16.7 3'3 9.1 -2- State South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming Total Number of active banks June TO. 1920 ^53 688 $6 1.5^8 132 88 500 390 338 968 Number of suspensions 1921-iq-K) 252 Suspensions per hundred active banks 5*7 55.6 65,0 95 251 22 2 63 16.2 16.7 2 -l 12.6 S 102 17A l4,9 158 6l 13.0 10.5 38.6 28,499 6,706 23.5 AFPI2IDIX III is onitted fron this copy. This is the printed schedule used in collecting information regarding hank suspensions from 1921 to 1930* November 6, 1931 Federal Reserve Committee on Branch, Group and Chain Banking BANKING COSTS AND PROFITS Preliminary material subject to revision 88 BANKING- COSTS AND PROFITS The following series of ten charts and accompanying tables form a part of an intensive analysis of national bank earnings over a five-year period, I926-I93O. It has often "been alleged of recent years that the banks in small towns do not make earnings sufficient to support themselves and that this is one important reason for the greater mortality among these institutions. National bank earnings data have been arranged to bring out some of the facts in this respect. The charts show that the proportion of small banks making satisfactory profit returns on invested capital is much smaller than among large banks, and that the contrast between the size groups is more pronounced in agrarian districts than in industrial ones. Although small banks typically have a higher rate of gross return on loans and investments, they are not as profitable as large banks because their costs of handling a unit of business are higher than those of large banks and their losses are greater. Analysis by size of bank: Charts 1 and 2 and Tables 1 and 2 are based upon an enumeration of national banks by size and by rates of earnings during the five years I926-I93O. They show that on the average one-third of the banks in the smallest size group (loans and investments of less than $150,000) reported an annual loss or no net earnings. Half the banks in the same size group earned less than 3 per cent, including those showing losses. 89 In 1920 there were over 6,000 State and national banks of that size in the country, hut in 1930 the number had been reduced to something less than 5,000. The propor- tion of banks showing losses or earnings less than 3 per cent grew progressively smaller as the size of the banks increased. Of those banks with loans and investments of $50,000,000 or more, less than 3 per cent showed net losses and only 7 Ver cent earned less than 3 per cent annu- ally on invested capital (capital, surplus, undivided profits and capital reserves). Geographical differences; Charts 3 and k and Tables 3 and U bring out the difference in earnings in the industrial northeastern states as contrasted with the agricultural mid-continent states. In the case of the smallest size group and the largest size group the differences between the two areas are not great. It should be noted, however, that there are very few banks in the northeastern states with loans and investments of less than $150,000, but a comparatively large number in the mid-continent states. In the other size groups the proportion of poor earners is much larger among the mid-continent banks than among the northeastern banks. Analysis by size of town: Charts 5 an<i 6 &&•&• Tables 5 and- S are based on an enumeration of banks by size of town in which located and by rates of earnings. These again reflect chiefly the contrast between small and large banks although not as sharply as in the preceding charts since there are many small banks in large towns. Operating ratios: Charts 7 to 10 and Tables 7 to 10 show certain in- come and expense items among banks of various sizes. In order to com- pare size groups, the income and expense items of each national hank were reduced to amounts per hundred dollars of loans and investments* The ratios with respect to any particular size group represent the averages of the annual ratios of each hank in the group over the fiveyear period. Chart 7 shows that the small hanks have a higher rate of gross earnings but a smaller margin of net profits per $100 of loans and investments than the large banks. The unfavorable results of the smaller banks grow oiit of higher salaries and wages, higher overhead expenses, and larger losses per unit of business. Payments of inter- est on deposits, as Chart 8 shows, does not contribute to the condition. Sources The material from which these charts were derived was taken from the condition reports and earnings and expense reports of each national bank active in the years 1926 through 1930» The analysis sheet upon which the data were compiled originally by the Federal reserve banks is included as an appendix following the charts and tables. It was necessary to prepare five analyses for each active national bank, one for each of the five years, or approximately 35,000 in all. It will be observed from the analysis sheet that the condition figures used for each year represent the averages of the several reports made during the year, usually four. After the analysis sheets had been completed in the Federal reserve banks, groupings of the data were at?(W transmitted to the Committee in tabulations designed by it. The staff of the Committee made the combinations and experiments necessary to bring out points bearing upon the problem of banking structure. oi5 EAMINGS 3Y SIZE OF BAM PER CENT CHART 1 PERCENTAGE OF NATIONAL BANKS EARNING NOTHING SIZE GROUPS 40 PER CENT 40 i * * Percentage of national banks showing annual net losses or no net earnings during 1926-1930 Banks grouped aocording to size of loans and investments Table 1 - PERCENTAGE 01 NATIONAL BANKS SHOWING ANNUAL NET LOSSES OR NO NET EARNINGS DURING 1926-1930 Banks Grouped According to Size of Loans and Investments Size Groups Loans and investments Percentage of "banks showing losses Under $150,000 35.0 150,000 to 250,000 22.0 250,000 to 500,000 20.6 500,000 to 750,000 lk.G 750,000 to 1,000,000 13.2 1,000,000 to 2,000,000 10.5 2,000,000 to 5,000,000 8.1+ 5,000,000 to 10,000,000 6.S 10,000,000 to 50,000,000 5.3 50,000,000 and over 2.5 All groups 15.s 96 PER CENT 60 CHART Z PERCENTAGE OF NATIONAL BANKS EARNING LESS THAN 3>% SIZE GROUPS PER CE.NT 60 Percentage of national banks showing annual net earnings available for dividends of l e s s than Z% on invested capital during 1926-1930 flanks grouped according to size of loans and investments Table 2 - PERCENTAGE OF NATIONAL BAMS SHOWING ANNUAL NET EARNINGS AVAILABLE FOR DIVIDENDS OF LESS THAN % ON INVESTED CAPITAL DURING 1926-1930 Banks Grouped According to Size of Loans and Investments Size Groups Loans and investments Percentage of banks earning less than 3$ Under $150,000 53.7 150,000 to 250,000 ^3-3 250,000 to 500,000 33*3 500,000 to 750,000 25.9 750,000 to 1,000,000 2kA 1,000,000 to 2,000,000 20.6 2,000,000 to 5,000,000 16.1 5,000,000 to 10,000,000 1^.0 10,000,000 to 50,000,000 11.s 50,000,000 and over 7.1 All groups 27.1 http://fraser.stlouisfed.org/ • Federal Reserve Bank of St. Louis &yc* EARNINGS IN INDUSTRIAL AND AGRICULTURAL AREAS 99 CHART 3 PERCENTAGE OF NATIONAL BANKS EARNING NOTHING IN NORTHEASTERN STATES AS CONTRASTED WITH MID-CONTINENT STATES PERCENT 40 SIZE GROUPS PERCENT 40 Percentage of national banks showing annual l o s s e s or no net earnings during 1926-1930 Bank6 grouped according t o s i z e of loans and investments Table 3 - PERCENTAGE 01 NATIONAL B A M S IN NORTHEASTERN STATES AS CONTRASTED WITH MID-CONTINENT STATES SHOWING ANNUAL LOSSES OR NO NET EARNINGS DURING 1926-1930 Banks Grouped According to Size of Loans and Investments Size Groups Loans and investments Percentage of banks showing losses Northeastern states* Mid-Continent states** Under $150,000 32.s 35-6 150,000 to 250,000 19.6 31.9 250,000 to 500,000 11.8 25.3 500,000 to 750,000 8.9 19.s 750,000 to 1,000,000 9.7 IS.2 1,000,000 to 2,000,000 7.5 16.8 2,000,000 to 5,000,000 6.5 9.7 5,000,000 and over 5.2 u,u 8.5 23.6 All groups * Northeastern states:- Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, Connecticut, New York, New Jersey, Delaware, Pennsylvania, Maryland, District of Columbia. ** Mid-Continent states:- Louisiana, Texas, Arkansas, Oklahoma, Minnesota, North Dakota, South Dakota, Iowa, Nebraska, Missouri, Kansas, 101 CHART 4 PERCENTAGE OF NATIONAL BANKS EARNING LESS THAN 3% IN NORTHEASTERN STATES AS CONTRASTED WITH MID-CONTINENT STATES ptHCENT 60 SIZE: GROUPS PERCEHT 60 Percentage of national banks showing annual net earnings available for dividends of l e s s than 3% on invested capital during 1926-1930 Banks grouped according to size of loans and investments 102 Table k - PERCENTAGE OF NATIONAL 3ANKS IN NORTHEASTERN STATES AS CONTRASTED WITH MID-CONTINENT STATES SHOWING ANNUAL NET EARNINGS AVAILABLE FOR DIVIDENDS OF LESS THAN 3$ ON INVESTED CAPITAL DURING 1926-1930 Banks Grouped According to Size of Loans and Investments Size Groups Loans and investments Percentage of banks earning l e s s than 3$ Mid-Continent Northeastern states** states* Under $150,000 51.7 51-* 150,000 to 250,000 32.5 ^7.S 250,000 to 500,000 21+.2 38.U 500,000 to 750,000 19.1 32.9 750,000 to 1,000,000 18.7 3L5 1,000,000 to 2,000,000 15.2 30.6 2,000,000 to 5,000,000 12.S 18.2 5,000,000 and over 12.2 11.2 I6.9 37.0 All groups * Northeastern states:- Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, Connecticut, New York, New Jersey, Delaware, Pennsylvania,, Maryland, District of Columbia. ** Mid-Continent states:- Louisiana, Tezas, Arkansas, Oklahoma, North Dakota, Minnesota, South Dakota, Iowa, Nebraska, Missouri, Kansas. 103 1AENINGS 01 BANKS 3Y SIZE OP TOWN CHART 5 PERCENTAGE OF NATIONAL BANKS EARNING NOTHING POPULATION GROUPS PER CENT 40 Percentage of national banks showing annual net losses or no net earnings during 1926-1930 Banks grouped acoording to size of towns Table 5 - PERCENTAGE OF HATIONAL BANKS SHOWING ANNUAL NET LOSSES OR NO NET EARNINGS DURING 1926-I93O Banks Grouped According to Size of Towns Size of towns Percentage of banks showing losses Less than 5OO 22.9 500 to 1,000 20.9 1,000 to 2,500 IS.5 2,500 to 5,000 13.8 5,000 to 10,000 13.3 10,000 to 50,000 10.1 50,000 to 100,000 100,000 and over All groups 9.^ 10.0 15.s 106 CHART 6 PERCENTAGE OF NATIONAL BANKS EARNING LESS THAN 3 % PER CENT 40 POPULATION GROUPS PER CENT 40 Percentage of n a t i o n a l banks showing annual net earnings a v a i l a b l e for dividends of l e s s than 2>% on invested c a p i t a l during 1926-1930 flanks grouped according to s i z e of towns 107 Table 6 - PERCENTAGE OJ NATIONAL B A M S SHOWING ANNUAL NET EARNINGS AVAILA3LE FOR DIVIDENDS OP LESS THAN 3$ ON INVESTED CAPITAL DUEING 1926-1930 Banks Grouped According to Size of Towns Size of towns Percentage of banks earning less than 3$ Less than 500 35.9 500 to 1,000 33-0 1,000 to 2,500 30.1 2,500 to 5,000 25.2 5,000 to 10,000 23.5 10,000 to 50,000 20.2 50,000 to 100,000 18.3 100,000 and over 21.5 All groups 27.1 108 TYPICAL OPERATING PATIOS BY SIZE OP 3 A M CHART 7 GROSS AND NET EARNINGS OF NATIONAL BANKS BY SIZE GROUPS Amounts of annual gross and net earnings per $100 of loans and i n v e s t ments for a l l banks in each group averaged for y e a r s 1926-1930 Banks grouped according to size of loans and investments Table 7 - ANNUAL GROSS AND NET EARNINGS PER $100 OF LOANS AND INVESTMENTS I'OR ALL NATIONAL BANKS IN EACH GROUP AVERAGED FOB YEARS I926-I93O Banks Grouped According to Size of Loans and Investments Size Groups , Loans and investments Under $150,000 Amounts p<3r $100 of loans and :investments Gross income $ 9-18 Net income $ .02 150,000 to 250,000 S.06 .50 250,000 to 500,000 7.35 .70 500,000 to 750,000 6.99 .93 750,000 to 1,000,000 6.7U • 99 1,000,000 to 2,000,000 6.52 1.05 2,000,000 to 5,000,000 6.55 1.13 5,000,000 to 10,000,000 6.37 1.1^ 10,000,000 to 50,000,000 6.39 1.21 50,000,000 and over 6.O9 1.37 Ill CHART 6 EXPENSES AND LOSSES OF NATIONAL BANKS BY SIZE GROUPS Amounts of annual expanses and l o s s e s per $100 of loans and investments for a l l banks in each group averaged for years 1926-1930 Banks grouped acoording t o s i z e of loans and investments Table 8 - ANNUAL EXPENSES AND LOSSES PER $100 OF LOANS AND INVESTMENTS POR ALL NATIONAL BANKS IN EACH GEOTJP AVERAGED POE YEASS 1926-I93O Banks Grouped According to Size of Loans and Investments Amounts per $100 of loans and investments Size Groups Loans and investments Interest on deposits Salaries and wages Other expenses Net losses $ 1.3^ $ 3.32 $ 2.81 $ I.69 150,000 to 250,000 1.7^ 2.U6 2.0U 1.33 250,000 to 500,000 1.97 1.95 1.6l 1.13 500,000 to 750,000 2. (ft- 1.66 1.U0 .91 750,000 to 1,000,000 2.08 1.51 1.30 .86 1,000,000 to 2,000,000 2.18 1.38 1.20 .75 2,000,000 to 5,000,000 2.2U 1.31 1.18 .70 5,000,000 to 10,000,000 2.28 1.19 1.15 .62 10,000,000 to 50,000,000 2.17 1.22 1.19 • 59 50,000,000 and over 2.00 1.10 1.08 .53 Under $150,000 113 CHART 9 GROSS EARNINGS OF NATIONAL BANKS IN NORTHEASTERN STATES AS CONTRASTED WITH MID-CONTINENT STATES SIZE GROUPS OF DOLLARS Amounts of annual gross earnings per $100 of loans and Investments for a l l banks in each group averaged for years 1926-1930 Banks grouped according t o s i z e of loans and investments 114 Table 9 - ANNUAL GROSS EARNINGS PER $100 OF LOANS AND INVESTMENTS FOR ALL NATIONAL B A M S IN EACH GROUP AVERAGED FOR YEARS I926-I93O Banks Grouped According to Size of Loans and Investments Size Groups Loans and investments Amounts of annual gross earnings per $100 of loans and investments Mid-Continent Northeastern States States $ 6.14-0 $ 9.83 150,000 to 250,000 6.32 8.69 250,000 to 500,000 6.29 7-SS 500,000 to 750,000 6.32 7.6U 750,000 to 1,000,000 6.33 7.31 1,000,000 to 2,000,000 6.27 7.15 2,000,000 to 5,000,000 6.2S 7.01 5,000,000 and over 6.15 6.62 Under $150,000 115 CHART 20 EXPENSES AND LOSSES OF DOLLARS NATIONAL BANKS IN NORTHEASTERN STATES AS CONTRASTED WITH MID-CONTINENT STATES SIZE GROUPS I Mew Englandand Wistern Grain and •Southwestern States \MiddkAt/a/rficStates Amounts of annual expenses and losses per $100 of loans and investments for all banks in each group averaged for years 1926-1930 Banks grouped according to size of loans and investments 116 Table 10 - ANNUAL EXPENSES AND LOSSES PES $100 OF LOANS AND INVESTMENTS FOE.ALL NATIONAL BANKS IN EACH GROUP AVERAGED FOR YEARS 1926-1930 Banks Grouped According to Size of Loans and Investments Amount Intelrest on deiDosits Size Groups North- MidLoans and investments eastConern tinent states states Under $150,000 $1.39 per $100 of loans and invesltments Other Salaries Net 1<)sses expenses and waees North- Mid- North- Mid- North- MidCon- easteastCon- eastContinent tinent ern tinent ern ern states states states states states states $1.27 $2.12 §3.&3 $2.05 $2.95 $1.11 $1.96 150,000 to 250,000 I.56 1.75 1.76 2.71 1.U8 2.22 • 57 1.66 250,000 to 500,000 1.90 2.00 1.^3 2.22 1.23 1.78 .61 i.*3 500,000 to 750,000 2.01 2.12 1.30- 1.93 1.12 1.55 • 59 1.19 750,000 to 1,000,000 2.12 2.09 1.21 I.83 1.09 l.UU .63 l.lU 1,000,000 to 2,000,000 2.28 2.12 1.15 1.70 1.01 1.41 .56 l.ll 2,000,000 to 5,000,000 2.39 2.0S 1.09 1.60 .99 1.^2 .56 .90 5,000,000 and over 2.33 2.13 1.05 I.36 1.00 1.35 •55 .66 APPENDIX FEDERAL RESERVE COMMITTEE ON BRANCH, GROUP AND CHAIN BANKING ANALYSIS OF BANK EARNINGS (Use a separate blank for each year for each bank) State Year. Name of bank. City Federal Reserve District No.. PERCENTAGES OF GROSS EARNINGS Per cent (two decimals) 1. Interest and discount on loans and investments (A -5- C) 1. 2. Other earnings (B -5- C) 2. 3. Salaries and wages (D -5- C) 3. 4. Interest paid on gross deposits (E -f- C) 4. 5. Other expenses (F -5- C) 5. 6. (G •*• C) 6. (H -5- C) 7. (3 + 4 + 5 + 7) 8. Q-5-C) 9. Net earnings 7. Net losses 8. Total expenses and losses 100% 100% 100% 9. Net addition to profits PERCENTAGES OF LOANS AND INVESTMENTS 10. Interest and discount on loans and investments (A -s- K) 10. 11. Other earnings (B -f- K) 11. 12. Total earnings (10 + 11) _ = 12. 13. Salaries and wages (D -5- K) 13 1 14. Interest paid on gross deposits (E -r- K) 14. 15. Other expenses (F+K) 15. 16. (G -5- K) = Item 12 Net earnings 17. Net losses 18. _ _ (H-fK) Total expenses and losses . (13 + 14 + 15 + 17) 16. 17. ___ 18. = Item 12 19. Net addition to profits (j-i-K) 19. 20. Capital, surplus, profits and reserves (L -f- K) 20. 21. Gross deposits (N -*• K) 21. 22. Net earnings (before losses) to invested capital (G -f- L) 22. 23. Net addition to profits to invested capital (J -=- L) 23. (M -5- N) 24. 25. Invested capital to gross deposits (L -r- N) 25. 26. Interest on deposits to gross deposits (E -5- N) 26. OTHER PERCENTAGES 24. Time deposits to gross deposits NOTE.—Check ratios by seeing that: (a) Items 1 + 2 equal 100 per cent; (b) Items 3 to 6 equal 100 per cent; (c) Items 8 + 9 equal 100 per cent; (d) Items 13 to 16 equal item 12; (e) Items 18 + 19 equal item 12; (f) Items 20 to 26 are calculated twice. November 6, 1931 Federal Reserve Committee on Branch, Group and Chain Banking B R A N C H B A N K I N G Preliminary material subject to revision 118 BRANCH TAMjm Since 1900 the number of branches of State and national banks in the United States has increased from 111 to 3;^3> part of this development has occurred since 1320o and - the greater The extension of branches was confined almost entirely to State banks prior to 1921, but since that time the number operated by national banks has grown almost as rapidly as those of State banks. Most of the increase has occurred among branches situated in the same city with the head office, and at the present time these compose about two-thirds of the total. The to- tal number of branches in the country declined somewhat between the middle of 1930 a n ^ th.e middle of 1931 *"or tile first time since annual figures have been available. These developments are shown in Charts 1-3» Table 1 and Appendix I, The figures in these and the following charts and tables give the branches of State and national banks, including trust companies and stock savings banks, but exclude branches of mutual savings banks and private banks, of which there are comparatively few. Geographic distribution: Charts H-8, Tables 2-7, and Appendix II give certain geographical distributions of branches, including groups of States according to the legal status of branch banking. Nine States and the District of Columbia permit State-wide branch banking. these States there are 1,276 branches or 37 P e r cen,fc In °f t h e total. The principal State in this group is California with 819 branches. There are fifteen States which permit branches restricted as 119 to l o c a t i o n . These States usually r e s t r i c t 'branches to the sane c i t y in which the parent "bank i s located "but sometimes to the same county or contiguous counties. Over 60 per cent of a l l branches in the country are located i n those 15 S t a t e s . The chief States in t h i s group a r e New York with 707 "branches, Michigan with H03 "branches, and Ohio with 269 "branches. In the other 2^ States which e i t h e r p r o h i b i t the establishment of additional branches or make no provision i n law for branches, there are only H6 in operation. Size of towns in which branches operate: Chart 9 snd Tables 8 and 9 classify branches according to size of town. Over 63 p e r c e n t of the branches i n the country a r e in towns of 100,000 or more population. The p r i n c i p a l branch banking c i t i e s are New York City with 557 branches and Detroit with 2lk (Table lh). Size of branch systems: Charts 10 and 11 and Tables 10 and 11 c l a s s i f y branch systems by s i z e . Over 55 per c e n t of the branches in the United States are operated by banks with loans and investments of $50,000,000 or more, and another 21 per cent are operated bjr banks with loans and investments of $10,000,000 to $50,000,000. Nearly 70 per cent of a l l banks with loans and investments of $50,000,000 or more have branches. Table 12 c l a s s i f i e s the number of branch systems according to the number of branches i n each system. Of the 722 banks with branches on June 30, 1931. over half, or 380 had but one branch each. number of branches belonging to one bank was 350. The l a r g e s t The largest branch 121 systems, however, are by no means identical with the largest banks, and the majority of the latter appear to owe very little of their size to their branches. This is illustrated in Table 13, which lists the 20 largest banks having branches. each. Four of these have only two branches The loans and investments of these twenty amount to practically 50 per cent of the loans and investments of all banks having branches. Sources The historical data relating to branches before 1926 wers assembled by the Federal Reserve Committee on Branch, Group and Chain Banking with the cooperation of the Federal reserve banks and the State superintendents of banking. The data comes in part from the records of the State banking departments, in part from the records of the Federal Reserve Board, and in part from the Banking Inquiry of 1925. The data for the years 1926 to 1931 are from current records of the Federal Reserve Board. Table 1 - NUMBER OF BRANCH SYSTEMS AND NUMBER OF BRANCHES IN THE UNITED STATES* 1900-1931 Year** 1900 1905 1910 1915 1920 1921 1922 1923 1924 1925 1926 1927 192S 1929 1930 1931 * Number of banks with branches 79 Nunaber of brandies Outside In Total head office head office branches city city 188 292 25 135 271 397 U35 530 547 610 671 706 719 742 738 773 763 749 722 904 1,156 I.327 1,51*+ 1,724 1.877 1.958 2,1^0 2,275 2,385 2,299 77 ? S6 207 277 350 507 m 727 785 801 824 954 995 1,075 1,131 1,164 111 342 548 785 1,280 1,454 1,800 2,054 2,299 2,525 2,701 2,912 3.135 3,350 3,5l6 3.463 Figures are given separately for State banks and national banks in Appendix I. ** For the years 1900 to 1923 inclusive the figures are not as of any uniform month. For 1924 they are as of June, for I925 and 1926 as of December, and for 1926 to 193I inclusive they are as of June. Note:- This and following tables give revised figures for 1929 and 1930 on the basis of additional data received since the preparation of previous summaries of branch banking by the Federal Reserve Board. Furthermore, mutual savings banks and private banks reported as operating branches have been omitted. Mutual savings banks thus excluded numbered 71 at the end of June 1931, with 110 branches and Joans and investments of $3,715,000,000. Private banks excluded numbered 3 °n the same date, with 4 branches and loans and investments of $684,000. Where comparisons in these tables are made with all active banks, private and mutual savings banks have likewise been eliminated from the active bank figures. 124 CHART 2 NUMBER NUMBER OF BANKS OPERATING BRANCHES IN THE UNITED STATES NUMBER 800 Number of State and national banks operating branches in the United States, 1900-1931. Prom 1900 to 1920 figures are for five year periods, but from 1920 to 1931 they are annual 125 CHART 3 NUMBER 2,500 BRANCHES OF NATIONAL AND STATE. BANKS IN THE UNITED STATES NUMBER Z.500 Number of branches of State and national banks i n t h e United S t a t e s , 1900-1931, From 1900 t o 1920 the figures are for f i v e y e a r p e r i o d s , but from 1920 t o 1931 they are annual X£6 GEOGRAPHIC DISTRIBUTION OF BRANCHES ±27 CHART 4 STATUS OFSTATE LAWS ON BRANCH BANKING JUNE 30,1931 128 CHARTS NUMBER 2,500 BRANCHES OF BANKS INSTATES PERMITTING BRANCHES NUMBER 2,500 Number of branches of State and national banks in those states which on June 30, 1931 permitted the establishment of state-wide branches and. branches restricted as to location Table 2 - BRANCH SYSTEMS IN STATES RESTRICTING BRANCHES AS TO LOCATION* Year 1900 1905 1910 1915 1920 1921 1922 1923 1924 1925 1926 1927 1928 1929 1930 1931 Number of banks with branches ^5 119 175 227 319 32 1 365 m U39 U61 1+82 I4-96 522 525 516 50l+ Number of b r a n d•xes Outside In Total head office head office branches city city 20 123 230 369 671 781 906 1,006 1,152 1,295 1,^15 1,509 1,653 l.SW 1,926 1,35s ^5 65 90 ill 135 180 190 198 230 245 2^5 232 23U 2% 2^7 257 283 213 314i 50^ 851 971 i,ioU 1,236 1,397 1,51+0 1,61+7 1,7^3 1,896 2,051 2,183 2,lUl * iegal status as of June 30, 1931* These states are: Georgia, Indiana, Iowa, Kentucky, Louisiana, Maine, Massachusetts, Michigan, Mississippi, Montana, New Jersey, New York, Ohio, Pennsylvania, Tennessee. 130 Table 3 - BRANCH SYSTEMS IN STATES PERMITTING STATE-WIDE BRANCH BANKING* Tfnm'hAT* c\"P Year 1900 1905 1910 1915 1920 1921 1922 1923 1924 1925 1926 1927 192S 1929 1930 1931 banks with "branches 24 46 Number of branches In Outside Total head office head office city city 1 6 si 137 27 180 1SS 215 91 113 230 300 342 239 240 232 235 217 220 215 212 197 53 443 43O 46S 452 440 422 26 81 120 169 280 402 27 87 1^7 222 371 427 632 U56 756 499 517 558 686 718 841 930 795 843 854 1,001 1,116 . 1,186 1,247 1,283 1,276 Legal status as of June 30, 1931* These states are: Arizona, California, Delaware, District of Columbia, Maryland, North Carolina, Rhode Island, South Carolina, Vermont, Virginia. 131 CHART 6 NUMBER 1200 DISTRIBUTION OF BRANCHES BY GEOGRAPHIC DIVISIONS - JUNE 30,1931 NUMBER 1200 Number of branches of State and national banks arranged according to the geographic divisions in which they are situated 132 Table k - BRANCH SYSTEMS BY GEOGRAPHIC DIVISIONS Geographic divisions Number <3f hanks with hi"anches Loans and investments (000 omitted) June June 1920 1931 Number of branches June 1931 63 97 92 126 2U0 365 1,126 North Central 93 ill 336 696 922,960 2,768,3^ Southern Mountain 32 67 52 139 98,982 ^38,538 South Eastern SO 9\ 132 2*+5 152,939 370,161+ South Western 36 Uk 86 108 20^,157 210,292 Western Grain 2 33 2 *3 10.H80 186,626 Rocky Mountain 9 9 25 29 15,621+ 18,00^ 89 57 190 S25 839,1+sk 2,1+77,967 530 722 1,280 3,^63 New England Middle Atlantic Pacific Coast UNITED STATES June 1920 June 1911 June 1920 252 $ 597,531 $ 1,789,015 k,0^k,6^ 12,331.770 $ 6,896,851 $20,590,72!+ Table 5 - BRANCHES INSIDE AMD OUTSIDE THE CITY Of HEAD OFFICE BY GEOGRAPHIC DIVISIONS, JUNE 30, 1931 Geographic divisions Number of banks with branches Number of branches Number of Number of outside branches Total branches head outside number of in head county of branches office office city but head city in same office county 97 150 64 32 252 Middle Atlantic 2^0 1,01*0 56 30 1,126 North Central 111 663 28 5 696 Southern Mountain 67 73 33 33 139 South Eastern 64 Ho 42 163 2U5 South Western 1* 51 52 5 108 Western Grain 33 8 26 9 ^3 •• • 13 16 29 57 27U 89 462 825 722 2,299 403 76l 3,463 New England Rocky Mountain Pacific Coast Total 9 134 CHART 7 NUMBER 300 DISTRIBUTION OF BRANCH SYSTEMS BY GEOGRAPHIC DIVISIONS-JUNE 30,1951 NUMBER 300 Hunber of State and national banks with branches arranged according to the geographic divisions in which they are located 1 CHART 8 In California there are numerous branches In the metrop o l i t a n areas centering around San Franoiseo and Los Angeles, but t e c h n i c a l l y outside their c i t y l i m i t s . On the map the dots extend muoh beyond the t e r r i t o r y in which the branches are actually located around these o l t i e s . In the terms of the Iowa law, no "branches" are permitted in that s t a t e , but banks are authorised to have "offices" in the sane and contiguous c o u n t i e s . Although the functions of these offloee are limited, they are included here in the general c l a s s i f i c a t i o n of branohes. 1 Table 6 - LOANS AND INVESTMENTS OF BRANCH SYSTEMS COMPARED WITH LOANS AND INVESTMENTS OP ALL BANKS JUNE 30, 1931 States classified according to law regarding branch banking State-wide branch banking permitted Loans and Loans and investments of investments of banks operating all active branches banks (000 omitted) (000 omitted) Per cent of total in branch systems $ 3,70^,327 $ 5,624,173 65.9 Branches restricted as to location l6,44l,091 2S,0S2,6l7 58.5 Establishment of branches prohibited 444,701 10,063,209 4.4 605 654,935 .1 $20,590,724 $44,424,934 46.3 No provision in State law Total 137 Table 7 - NUMBER OF BAMS AND BANKING OFFICES IN BRANCH SYSTEMS COMPARED WITH ALL BANKS, JUNE 30, 1931 Branch systems All active banks Ratio of branch States classified systems Total Total according to to total Number banking banking Number law regarding number offices of offices of branch banking banks (banks and banks (banks and of banks branches) (per cent) branches) Ratio of banking offices in branch systems to total banking offices (per cent) State-wide branch banking permitted 197 1.U73 1,75"+ 3,030 11.2 Ug.6 Branches restricted as to location 50^ 2,645 8,k68 10,609 6.0 2U.9 20 65 9,580 9,625 .2 .7 1 2 1,321 1,322 .1 .2 722 H.1S5 21,123 2^,586 3.* 17.0 Establishment of branches prohibited No provision in State law Total 138 SIZE OF TOMS III WHICH BRANCHES OPERATE 139 CHART 9 NUMBER 2200 DISTRIBUTION OF BRANCHES BY SIZE OF TOWN-JUNE 30 1931 NUMBER 2200 Number of branches of State and national banks arranged according to the size of town in which they are situated 140 Table 8 - BRANCHES BY SIZE OF TOVJN JUKE 30, Population of town Under 5OO 500 to 1,000 1,000 to 2,500 2,500 to 5,000 5,000 to 10,000 10,000 to 25,000 25,000 to 50,000 50,000 to 100,000 100,000 and over Total 1931 In head Outside head Total office city. office city Number Per Number Per Number Per cent cent cent 2 185 169 212 139 15.9 1^.5 18.2 12.0 187 169 219 IU5 2,043 106 92 *7 60 15* 9.1 1.2 3.0 5.7 88.9 117 121 117 191 2,197 H Si 2,299 100.0 1.16U 100.0 3.^3 100.0 • • • I 11 29 70 .1 •• • •3 .5 7.9 k.o 5.2 13.2 6.3 U.2 3.* Table 9 — BHAKCH SYSTEMS BY SIZE 0? T O W OF EEiD OFFICE, JUHS! 30, 1931 Population of town Number of banks Per cent of total Per cent of total Loans and investments (000 omitted) Under 500 26 3.6 $15,20S .1 500 to 1,000 3S 5.3 23,2b2 .1 1,000 to 2,500 6l S.4 6S,7^5 .3 2,500 to 5,000 54 7.5 102,59*+ .5 5,000 to 10,000 39 5.4 91,011 .4 10,000 to 25,000 57 7.9 224,114 1.1 25,000 to 50,000 60 8.3 3SS.42S 1.9 50,000 to 100,000 79 10.9 ssi,309 4.3 308 42.7 is,796,053 91.3 722 100.0 $20,590,724 100.0 100,000 and over Total > 142 SIZE OF BHMCH SYSTEMS 143 CHART 10 NUMBER 2000 DISTRIBUTION OF BRANCHES ST SIZE OF BANKS TO WHICH THEY BELONG-JUNE 30,1930 NUMBER 2000 Number of branches of State and national banks arranged according to the amount of loans and investments of the branch systems to to which they belong 144 CHART 11 NUMBER DISTRIBUTION OF BRANCH SYSTEMS BY SIZE OF LOANS AND INVESTMENTS -JUNE 30,1930 NUMBER 200 Number of branch systems, State and national, arranged according to the amount of their loans and investments 200 Table 10 — BRANCH SYSTEMS CLASSIFIED BY SIZE OF LOANS AND INOSTMElvTS, JUEB 30, 1931 S i z e Groups Loans and i n v e s t m e n t s Aggregat e Number lumber Per cent l o a n s rnd Fer c e n t of ba:ir:s of of of investments with t o t a l t o tal b r a n c h e s (000. omitted) branches Under $150,000 11 11 .3 $1,064 150,000 to 250,000 17 20 .6 3,1^0 250,000 to 500,000 ^7 52 1.5 17,537 .1 500,000 to 750,000 30 37 l.l 17,895 .1 750,000 to 1,000,000 32 ^5 1.3 27,2U2 .2 1,000,000 to 2,000,000 87 125 3.6 123,361 .6 2,000,000 to 5,000,000 136 283 8.2 ^58,SIS 2.2 5,000,000 to 10,000,000 11s 25^ 7.3 ssU,909 10,000,000 to 50,000,000 169 716 20.7 3,618,996 17.6 75 1,920 55 A 15,^37,762 7^.9 722 3.^3 100.0 20,590, 72U 100.0 50,000,000 and over Total 146 Table 11 — RATIO OF BBMCH SYSTEMS TO ACTIVE BATIKS, BY SIZE OF LOAHS AiTD INVESTMENTS, JUNE 30, 1930. Size Groups Loans and Investments lumber of a l l tanks in the U.S. Per cent of Ifumber of a l l banks "banks'- . with branches operating branches Under $150,000 M39 6 .12 150,000 to 250,000 3,510 g .23 250,000 to 500,000 M-,966 ^9 •99 500,000 to.750,000 2,362 kl 1.7* 750,000 to 1,000,000 1.552 22 1.U2 1,000,000 to 2,000,000 2,600 S5 3.27 2,000,000 to 5,000,000 1.SS7 iij6 7.7* 5,000,000 to 10,000,000 59b 123 20. ok 10,000,000 to 50,000,000 >+53 199 * ^3.93 50,000,000 and over 101 70 6q.3o 22,866 7U9 3.28 Total Table 12 — 3TE33R OF 3RMCH SYSTEHS CLASSIFIED BY WJ&ZZL OF BHA2TCH3S Iff EACH SYST314.JOT3 30, 1931 Number of "branches per bank Aggregate number of branches Number of banks with branches 1 2 3 4 5 380 115 65 6 7 9 10 11 6 7 7 4 66 42 56 63 4o 457,363 185,213 309,829 265,92s 247,150 11-15 1S-20 a-30 27 9 7 33^ 167 169 2.272,232 633,941 1,443,961 33 34 36 37 38 1 2 1 1 1 33 6g 36 37 38 98,933 s4s,09i 219,407 225,203 98,832 1+3 44 2 1 2 1 g6 44 108 57 S3 1.3S1.B1? 21,9p,4 1,111,877 265,si5 50,054 1 1 1 1 1 1 67 80 93 126 150 350 722 3,^63 215,286 339,011 209,131 458,363 376,200 S65.S54 $20,590,724 4o 25 s 5k 57 63 67 SO 93 126 150 350 Total r ! 380 230 195 160 125 Aggregate loans and investments (000 omitted) $2,261,293 3,353,849 929,146 1,000,575 534,4is 148 Table 13 - TWENTY LARGEST BANKS HT THE UNITED STATES WHICH OPERATE BRANCHES JUNE 30, 1931. Name Chase National Bank, New York Guaranty Trust Co., New York National City Bank, New York Bank of America N.T. & S.A., San Francisco Central Hanover Bank & Tr.Co., New York Bankers Trust Company, New York Irving Trust Company, New York Security F i r s t Nat. Bank, Los Angeles F i r s t National Bank, Boston Chemical Bank & Trust Co., New York Peoples Wayne County Bank, Detroit Bank of Manhattan Trust Co., New York Philadelphia Nat. Bank, Philadelphia Cleveland Trust Co., Cleveland Union Trust Company, Cleveland New York Trust Co., New York Manufacturers' Trust Co., New York Penn Co. for Insurance on L i v e s , e t c . , P h i l a . Bank of America - N.A., New York Marine Trust Company, Buffalo Twenty l a r g e s t hanks with branches All other (702) hanks with branches All banks (722) with branches Loans and investments (000 omitted) Number of branches (a, 6 3 9 , ^ 0 U3 2 1,092,965 5^ 1,017,69S 865,35^ 350 570, M+5 15 500,230 2 i+90,927 27 U5S,363 126 1136,19s 21 ik 399,267 376,200 150 339,011 80 2 295, SsU 265,215 57 263,225 22 •2^7,661 2 ^3 2^1,975 233,62k 11 225,203 37 219.^07 ?6 31.6$ ;)10,1SU,192 49,5$ L09U 10.U0b.532 50. 5% 2,369 Sg.i# $20,590,72H 100.0 3,^63 100.0 Table l4 — NUMBER 01 BRANCH SYSTEMS AND BRANCHES IF TEE ELEVEN LARGEST CITIES 0? THE UNITED STATES, JUKE 30, 1931 Cities Population 1930 census Number Number Number Loans and of investments of of Total banlrs of br,nks with branches branches branches branches with within outside branches (000 omitted) c i t y city New York City 6,930,446 51 Chicago 3,376,438 - Philadelphia 1,950,961 30 1,332,589 104 Detroit 1,568,662 7 755,670 274 Los Angeles l,238,04g 9 723,774 *157 133 •290 Cleveland 900,429 10 805,996 93 21' 114 S t . Louis 821,960 - Baltimore 804,S74 9 279,278 56 Boston 781,188 13 921,721 64 - 64 Pittsburgh 669,817 3 186,985 9 - 9 San Francisco 634,394 7 1,503,286 95 366 461 Total 11 c i t i e s 19,677,217 139 $14,537,000 1,409 522 1,931 Remainder U. S. 103,097,825 583 6,053,724 S90 642 1,532 122,775,042 722 $20,590,724 2,299 1,164 3,^63 Total U. S. $8,027,701 - - 557 - 557 - - • 274 - - - 2 •Exclusive of 79 branches belonging to banks outside Los Angeles. io4 58 150 APPENDICES A P P E N D I X I BDMB3R 0? STATS AM) MTIOI'AL BAT'S 17ITH BRil'CHSS AI© MJMBER OF BHA1TCK3S I1T THE UNIT3D STAT3S, 1900-1931 Year N a t i o n a l banks Number Number jSfunfb er of b r a n c h e s of of n a t i o n a l banks of Outside state n a t i o n a l In Total head b r a n c h e s "banks "banks head o f f i c e o f f i c e of n a t i o n with with c i t y a l banks branches c i t y branches S t a t e banks Fuiiiber of branches of s t a t e banks Outside Total In head branches head office of s t a t e office c i t y banks city 1900 5 1 4 5 74 24 82 106 1905 5 1 4 5 183 134 203 337 1910 9 1 11 12 283 270 266 536 1915 12 15 11 26 3S5 420 339 759 1920 21 4i 22 63 509 732 485 1,217 1921 23 50 22 72 524 854 528 1,382 1922 55 118 22 i4o 555 1,038 622 1,660 1923 91 181 23 204 580 i,i46 704 1,850 1924 112 233 23 256 594 1,281 762 2,043 1925 130 29b 22 31s 5S9 1,428 779 2,207 1926 l4g 384 37 421 594 1,493 787 2,280 1927 153 433 290 723 535 1,525 664 2,189 192S 171 595 339 934 602 1,545 656 2,201 1929 167 650 345 995 596 1,625 730 2,355 11930 166 703 340 1,043 5S3 1,682 791 2,473 1931 164 714 396 1,110 558 1,585 768 2,353 .. . A-0,<£ A P F 3 iT D I X II NUMBER 0? BASES Xm BRA3CHSS BY STATES, JUKE 30, 1931* States classified according t o law regarding branch •banking Total number of "banks Total Banks wj„th branches number Other City of systems systems T o t a l ** branches Number of b r a n c h e s Outside In head head offoffice ice city citv STAT3-WID3 BRANCH BASKEJG FBHMITTED Arizona California Delawaro D i s t . of Columbia Maryland North C a r o l i n a Rhode I s l a n d South C a r o l i n a Vermont Virginia Total 37 4l0 59 39 205 3 24 26 l4o 84 430 1,75^ 26 S19 12 26 11s SO wm S S 23 2 12 12 30 4 53 6 271 2 5 *w 26 548 10 — — l4 22 12 26 26 27 12 59 59 78 11 12 16 20 S — 28 10 30 422 854 19 16 1 36 S 3 81 10 3 Q 2 5 53 13 22 7 35 1,276 SO 117 197 j 73 BRA5CH3S RESTRICTED AS TO LOCATION Georgia Indiana Iowa Kentucky Louisiana Maine Massachusetts Michigan Mississippi Montana New J e r s e y New York Ohio Pennsylvania Tennessee Total 344 713 1,107 515 206 90 24S 672 267 165 515 904 871 1,418 433 8,468 p 35 15 35 •4 24 106 6 72 133 4o3 22 — 104 707 269 159 57 2,l4l - 10 2 53 56 8 1 29 2 32 20 - l 3 S 13 5 29 8 42 22 56 56 9 14 21 51 7 127 403 l — 52 82 - — 2 — 54 94 82 3S 56 6 4 8 16 707 238 152 24 373 131 44 60 24 504 1,858 35 3 55 65 6 — 21 — 10 — 31 7 33 283 APPS1TDIX II (Cont'd) NUMBSH 0? BANKS MD 3BA1TOESS 3 1 STAT3S, JUNE 3 0 , 1931* States classified according to law regarding branch banking Total number of banks Total B;.uv:s w i t h b r a n c h e s Number of b r a n c h e s In head Outside number Other City Total office head offof systems systems city ice city branches ESTABLISHED C ? 3EA1*CE3S PR0EI3IT3D BY LAW Alabama Arkansas Colorado Connecticut Florida Idaho Illinois Kansas Minnesota Missouri Nebraska Nevada New Mexico Oregon Texas Utah Washington West V i r g i n i a Wisconsin Total 284 321 250 156 193 131 1,463 972 17 2 — — - — — — - 933 1,100 727 6 2 - - 2 2 33 - 3 - l 1 - — 51 215 1,176 96 307 262 910 9,580 3 3 2 2 _ _ — - _ — — — — — — - 2 6 - - 17 2 _ — — — — — — - - 2 2 - - - — - 3 3 - - 1 1 1 3 1 - 1 2 - - - 9 5 1 6 8 1 45 11 9 20 19 26 5 - 2 NO PROVISION III STAT5 LAW REGARDING BRANCH 3ANKING l 1 i i i states 21,123 3.^63 464 258 722 2,299 1,164 National S t a t e members S t a t e nonmembers 6,800 982 13,3^1 1,110 1,287 1,066 152 137 175 12 18 228 l64 155 4o3 7l4 396 1,157 428 130 Total a l l 1,321 1 1 t l Total 1 1 1 1 1 1 1 i 302 550 318 82 l 1 69 i New Hampshire North Dakota Old. oho ma South Dakota Wyoming •Mutual s a v i n g s banks and p r i v a t e "baits a r e excluded. """Includes ban-.s o p e r a t i n g b r a n c h e s i n head o f f i c e c i t y and contiguous territory only. 638 APPENDIX III LOANS MD INVESTMENTS OF ALL BAMS AND OP BAMS OPERATING BRANCHES, BY STATES JUNE 30, 1931* (In thousands of d o l l a r s ) States classfied according to law regarding branch "banking All active banks Banks operating tranches City Other Total Systems** Systems STATE-WIPE BRANCH BANKING- PERMITTED Arizona Cal ifornia Delaware Dist. of Columbia Maryland North Carolina Rhode Island South Carolina Vermont Virginia Total 62,701 3,1^9,193 135,50^ 24g,4s3 617,403 278,577 363,054 136,43S 142,736 489.084 5,624,173 «•, 562,814 44,276 151,753 284,284 16,135 53,214 10,039 3,268 134.660 1,260,443 17,792 1,838,943 4o,34o - 61,54s 92,244 274,756 61,506 23,747 33,008 2,443,884 17,792 2,401,757 s4,6l6 15U53 345,S32 108,379 327,970 71,545 27,015 167.668 3,704,327 BRANCHES RESTRICTED AS TO LOCATION Georgia Indiana Iowa Kentucky Louisiana Maine Massachusetts Michigan Mississippi Montana New Jersey New York Ohio Pennsylvania Tennessee Total 291,430 631,320 682,833 421,243 376,509 301,284 1,942,457 1,722,276 147,477 119,482 1,963,337 11,698,632 2,315.657 5,120,128 347,952 28,082,617 102,140 74,504 - 99,212 163,143 4,451 1.254,838 1,110,241 8,388 - 889,353 9,084,453 1,092,528 1,685,386 137.382 15,706,019 61,357 290 17,333 3,H5 45,980 138,469 35,667 - 13,334 - 70,042 - 297,989 20,335 3l.l6l 735,072 163,497 74,794 17.333 102,327 209,123 142,920 1,290,505 1,110,241 a,722 - 959,395 9,084,453 1,390,517 1,705,721 168.543 16,441,091 A P P E N D I X III (Cont'd) LOANS AND INVESTMENTS OP ALL BANKS AND OP BANKS OPERATING BRANCHES, BY STATES JUNE 30, 1931* (In thousands of dollars) S t a t e s c l a s s i f i e d according t o law r e g a r d i n g branch "banking All active hanks Banks o-perating "branches Other City Total systems systems** ESTABLISHMENT OP BRANCHES PROHIBITED BY LAW Alabama Arkansas Colorado Connecticut Florida Idaho Illinois Kansas Minnesota Missouri Nebraska Nevada Now Mexico Oregon Texas Utah Washington 'Test V i r g i n i a Wisconsin Total Hew Hampshire N o r t h Dakota Old. ohoma South Dakota Wyoming Total T o t a l a l l banks National S t a t e members S t a t e nonmembers 22b,0§2 135,371 2 4 l , 263 598,514 189,061 67,5Si 3,207,106 325,793 723,065 1,102,347 303,456 33,944 35,136 229,1450 885,121 150,032 383,824 301,70S 853.764 10,063,209 5,oa - 5,021 1,169 1,169 163,027 - 6,266 - - IQ3,027 - 6,266 - 212 569 - 74,7^1 - 212 569 - - 75,641 900 - - 191.465 1,331 192.796 436,068 8,633 444,701 HO PROVISION III STATE LAY; REGARDING BRANCH BANKING 78,628 605 605 88,564 327,548 — 108,015 52.080 _ 654,935 605 605 44,424,934 20,590,724 17,402,530 3,188,194 20,824,530 13,097,992 10,502,412 6,984,945 3,544,334 8,601,057 907,213 1,816,528 736,647 8,529,279 9,508,270 2,553,175 •Mutual savings banks and private banks are jxeludeu.. """Includes banks operating branches in head office city and contiguous territory only November 6, 1931 Federal Reserve Committee on Branch, Group and Chain Banking CHAIN AND OHOUP B A N K I N G Preliminary material subject to revision 156 CHAIN AND GROUP BANKINGThere has teen little change in the number of banks in chain and group systems since the end of 1929 according to the tabulations of the Federal Reserve Board* During this period the movement has comprehended some 2,000 banks belonging to around 300 different systems. The tabulations of the Board have included only those chain and group systems which comprise three or more banks, and have excluded those affiliations of two banks only. This Committee has been making an effort through the Federal reserve banks to account for the twobank relationships as well as other types of affiliations, and although these compilations have not yet been completed, the indications are that over 5OO banks are involved in two-bank affiliations. Mutual savings banks and private banks have been excluded from the figures given in this series of tables and charts,. The spe- cial nature of the organization and functions of mutual savings banks makes their inclusion in a comparative study of this kind of doubtful value, especially in view of the small number which are affiliated with other institutions in such a way that they might be called members of groups or chains. Private banks belonging to chains and groups are likewise few, and the amount of information available regarding private banks generally is not sufficient to warrant their inclusion in this 1.57 1 comparative study. Developments since June 3Q» 1929: Tables 1-U show the developments of the group and chain movement during the past two years, together with the ratio of banks in chains and groups to all active banks in the country. The figures indicate a substantial growth during the latter half of 1929. A small increase in the first half of 1930 w a s more than offset by a decline in the next twelve months, due largely to failures. However, the loans and investments of chains and groups rose substantially during the first half of this year in spite of the failure of several systems. This was due to the inclusion of a large New York "bank which recently acquired a second bank affiliate, making it a group system within the definition of the Board. On June 30, 1931» there were 288 chain and group systems controlling 2,0^7 banks, with aggregate loans and investments of $13,600,000,000. About 10 per cent of all banks and 31 per cent of the loans and investments of all banks were included in chain and group systems on that date. Geographic distribution: Tables 5-9 a^cL Chart 1 summarize the geo- graphical distribution of chain and group banking and show that it has had its largest development in states where the establishment of branches is prohibited by law. One-half of all banks in chain and group systems are in these states. (The states are listed in Appen- dix I according to their laws regarding branch banking.) The Western Grain states, where banking difficulties have been large during the 159 past decade, account for nearly 700 of the "banks represented in chains and groups. State Out of a total of 2SS chain and group systems, 56 cross lines and control hanks in two or more States. One system operates in 8 States and another in 5 (Table 8 ) . Size of hanks; Tables 10-12 and Charts 2-4 classify the banks in chain and group systems by size, and indicate that a large proportion of all the loans and investments of such systems is accounted for by a few large banks. Some of these which have but a few banks associ- ated with them, for example, the Chase National Bank and the Central Hanover Bank and Trust Company of New York, are in contrast with more typical groups, such as the Northwest Bancorporation and the First Bank Stock Corporation of Minneapolis, each of which includes more than 100 banks. Banks with loans and investments of $50»0^0,000 or more each (45 in number) account for over oS per cent of the total loans and investments of all chain and group banks (Table 10). As of June 30, 1930, nearly 44 per cent of all active banks in the largest size group (loans and investments of $50,000,000 and over) were included in chains and groups. In the smallest size group (loans and investments under $150,000) only 6 per cent of the banks belonged to chains and groups (Table 12). Table 13 shows that of the 288 chain and group systems, 75 are composed of only 3 banks, 59 of 4 banks and 40 of 5 banks. Thus 60 per cent of the chain and group systems consist of from 3 to 5 banks each and account for Uo per cent of the loans and investments of all chain and group systems. Principal chain and group systems: Tables lU-ig and Chart 5 list the principal chain and group systems and classify the banks in the U9 principal groups according to size. The 62 systems listed, including the chains, account for 973 banks with loans and investments of $11,900,000,000. Among the principal systems have been included those with 10 or more banks and/or $50»000,000 loans and investments. Branches operated by banks in chain and group systems; A number of the tables in this section indicate the extent to which banks in chain and group systems operate branches. These banks with their branches are also included in the statistics of the section dealing with branch banking. 161 DEVELOPMENTS IN CHAIN AND GROUP BANKING SINCE JUNE 30, I929 Table 1 — 13Ui£3E 0? 3^~:S 127 CHAW A1JD GROUP SYSTEMS, BY CLASS OF BAM Number of Fumbe .• of tKinks in chain and ^.roup ry,items State chain National Nonmembor and group bank Total banks banks systems members Date Juno 30, 1329 301 67S 108 1,084 1,870 Dec. 3 1 , 1929 312 831 130 1,186 2,1^7 June 30, 1530 311 865 131 1,223 2,219 Dec. 3 1 , 1930 302 S50 125 l,l6l 2,136 Juno 30, 1931 2S8 838 121 1,088 2,0^7 HOTS: F i g u r e s f o r 1929 and 1930 a s shown i n t h i s and following': t a b l e s a r e as r e v i s e d i n October 1931» on t h e b a s i s of a d d i t i o n a l d a t a r e c e i v e d s i n c e the p r e p a r a t i o n of p r e v i o u s summaries of chain and group banking. F u r t h e r more, mutual savings and p r i v a t e banks r e p o r t e d a s members of c h a i n s have been o m i t t e d . Mutual s a v i n g s banks t h u s excluded numbered 9 a t t h e end of 1931 w i t h l o a n s and i n v e s t m e n t s of $79»OQO,000; and p r i v a t e banks, 23 w i t h loans and i n v e s t m e n t s of $ 4 , 0 0 0 , 0 0 0 . Twelve o t h e r banks with l o a n s and i n vestments of $26,000,000 were a l s o e l i m i n a t e d from t h e summaries, due to the f a c t t h a t t h e o m i s s i o n of a f f i l i a t e d mutual s a v i n g s banks and p r i v a t e banks reducod t h e i n d i v i d u a l a f f i l i a t i o n s to l e s s t h a n 3 banks. Where comparisons i n t h e s e t a b l e s a r c made w i t h a l l a c t i v e b a n k s , p r i v a t e and mutual s a v i n g s bankr. have l i k e w i s e been e l i m i n a t e d from t h e a c t i v e bank f i g u r e s . Table 2 — HUM3ER OF 3APES I IT CHAIIT AND &R0UP SYSTEMS FSE HUNDESD ACTIVE BAFKS Dat e national banks State bank members Nonmember banks Total June 30, 1929 9.0 9.2 7.0 7.7 June 30, 1930 11.9 12.3 s.k 9.7 June 30, 1931 12.3 12.3 8.1 9.7 Table 3 — LQA1JS AND INVESTMENTS OF BANKS IN CHAIN AND GROUP SYSTEMS, BY' CLASS OF BANK Date (In millions of dollars) State NonNational bank member 1)ruiks members banks Total June 30, 1929 $M99 $3.osi $1,723 -P9,507 Dec. 3 1 , 1929 6,4^5 3,963 1,983 12,392 June 30, 1930 6,667 3,992 2,15s 12,818 Dec. 3 1 , 1930 6,635 3,^4 1,868 11,968 June 30, 1931 8,062 3,731 1,790 13.5S3 Table k — LOANS AND INVESTMENTS OF BANKS IN CHAIN AND GROUP SYSTEMS PES HUNDRED DOLLARS OF LOANS AND INVESTMENTS OF ALL ACTIVE BANKS Nonmember banks Date Nat i o n a l banks State bank members June 30, 1929 $21.9 $21.6 $13-1 $19.5 June 30, 1930 30.7 28.7 17.^ 26,7 June 30, 1931 38.7 28.5 17.0 30.6 Total 164 GEOGRAPHIC DISTRIBUTION 0? CHAIN AND GROUP BANKING 165 CHART 1 BANKS IN CHAINS AND GROUPS JUNE JO, M l Table 5 — EITSBSR OP BA17KS AITD B2A1TCH3S III CEAI1T -MID ©OOP SYSTEMS 3Y STATES CLASSIFIED ACCORDING TO LEGAL STATUS OJ BHA1TCH BATZIITG, JUI72 30, 1 9 3 1 . States classified a c c o r d i n g to the law r e g a r d i n g branch "banking* T o t a l numb e r of banks i n c h a i n and group systems Uumbcr operating branches JTuir.be r in In head office city of b r a n c h e s o p e r a t e d by banks c h a i n and ^rou-p systems In Outside head office c i t y other Total but i n same counties county ! S t a t e - w i d e "branch "banking p e r m i t t e d i 72 13 lSl oJC 126 S50 E s t a b l i s h m e n t of "branches p r o h i b i t e d 1,033 s 15 1*1 1,02b Total i | ^70 33 1 52 i i 9to 17 272 2,0^7 7<* (o 523 •The States in these various classifications are listed as in Appendix I. S70 ! Branches r e s t r i c t e d as t o l o c a t i o n ITo p r o v i s i o n i n S t a t e law 39 1,627 1 Table S — NOMBSS 01 3AIIXS AITS BAMLTG OJ7IC3S Ifl CHAD! A2TD GROUP SYSTEMS COMPARED WITH TOTAL ACTIVE BAHXS AUD BRANCHES BY STATES CLASSIFIED ACCORDING- TO LEGAL STATUS OP BRANCH 3AZKIHG, JU1IE 30, 1931 States classified a c c o r d i n g t o the law r e g a r d i n g "branch "banking All Chain and group active banks * 37ster_is ITumber Humber Total Total banking of banking of banks o f f i c e s * * banks offices*" ITuriber i n c h a i n and group systems p e r hundred a c t i v e Banks Banking offices** S t a t e - w i d e "branch "banking permitted 72 7^2 1.75^ 3,030 U.i 24.5 Branches r e s t r i c t e d a s to location S70 1,610 g,46s 10,609 7.9 15.2 E s t a b l i s h m e n t of "branches prohibited 1,033 1,050 9,520 9,625 10.2 10.9 Ho p r o v i s i o n i n s t a t e law 272 272 1,321 20.6 20.6 2,0l+7 3,b7^ 21,123 9.7 14.9 Total 24,535 •Based on d a t a f u r n i s h e d by Comptroller of t h e Currency. **3anks and b r a n c h e s . Table 7 — LOANS AND INVESTMENTS OP BAMS HI CHAIN AND GROUP SYSTEMS CO!PARED WITH ALL ACTIVE BANKS BY STATES CLASSIFIED ACCORDING TO LEGAL STATUS OF BRANCH BANKING, JUNE 30, 1931 States classified a c c o r d i n g to the law r e g a r d i n g "branch hanking Loans and i n v e s t ments of bo.nks i n c h a i n and group systems (000,000 o m i t t e d ) Per c e n t of t o t a l in chain and (000,000 omitted) group systems Loans and i n v e s t ments of a l l a c t i v e banks $1,980 $5,621+ 35-2 Branches r e s t r i c t e d a s t o location S.30U 28,023 29.6 E s t a b l i s h m e n t of branches prohibited 3,09* 10,0o3 30.7 No p r o v i s i o n i n s t a t e law 206 13,533 LP Total VO S t a t e - w i d e branch "bankingpermitted 31.* 4U.1+25 30.6 -3.69 Table 8 — GHAI1T AITD GBOUP SYSTEMS, 3Y TK3 IJUiBSR 0? STAT2S IN 'THICK HT3IP. BAK35 OPERiTH: JUH3 30, 1931 ITumbc-r of s t a t e s in which harJ-s operate Futibcr of chain and &roup systems Agsre-^ata number of "b:::ihs in chain a-id group systems 1 232 1,339 2 *3 291 3 9 127 1+ 2 6o 5 1 105 g 1 125 28S 2,0^7 Total Table 9 ~ Goographic divisions Now England CEAI1! AH) GROUP BAiTOHC- 3Y GEOGRAPHIC DIVISIONS Sfuriber of t r nlrs June 30 1329 M *3 Loans and investments i n m i l l i o n s of d o l l a r s June 30 June 30 Juno 30 1930 1929 1331 June 30 1930 Juno 30 1931 S2 SZ 734 1,197 1,212 Middle A t l a n t i c 211 249 254 3,357 4,015 5.^51 North C e n t r a l 237 336 284 1,704 2,927 2,662 2S 56 42 101 311 1SS South E a s t e r n 127 154 133 345 443 424 South Western 260 2S9 237 233 327 351 Western Grain 646 697 663 630 1,013 954 Rociy Mountain 164 181 179 224 267 23S P a c i f i c Coast 15^ 175 161 2,11b 2,316 2,102 Total 1.870 2,219 2,047 9,507 12,SIS 13,583 Southern ifountain I.7l SIZE OF BAMS IN CHAIN AND GROUP SYSTEMS 172 CHART Z NUMBER NUMBER OF BANKS IN CHAIN AND GROUP SYSTEMS BY SIZE OF BANK NUMBER 400 Number of banks in ohain and group systems as of June 30, 1931 Banks c l a s s i f i e d aooording to size of loans and investments 400 173 CHARTS LOANS AND INVESTMENTS OF BANKS IN CHAIN AND GROUP SYSTEMS BY SIZE OF BANK MILLIONS OF DOLLARS MILLIONS OF DOLLARS 1O00O Loans and investments of banks 111 chain and group systems as of June 30, 1931 Banks olassified acoording to size of loans and investments fO 000 Table 10 — 11UME3R 0? BASKS IJ CHAIIT AKD G30UP SYST3HS BY SIZE OF LOi^S A17D IKVZSTLSATTS: JUKE 30, 1931 S i z e Groups Loans raid i n v e s t m e n t s Kunber of banks P e r cent, of total Aggregate P e r cent of investments t o tal !000,000 omitted) IOIXLS rnd Under $150,000 2SS 1U.6 $28 $150,000 to 250,000 263 12.S 52 A 250,000 to 500,000 399 19.5 1^5 1.1 500,000 to 750,000 19s 9-7 122 .9 750,000 to 1,000,000 1U0 6.8 123 .9 1,000,000 t o 2 , 0 0 0 , 0 0 0 259 12.7 367 2.7 2 , 0 0 0 , 0 0 0 to 5,000,000 2^0 11.7 73S 5A 5,000,000 t o 1 0 , 0 0 0 , 0 0 0 110 5M 301 5.9 10,000,000 t o 50,000,000 95 4.6 1.90S 14.0 50,000,000 and over U5 2.2 9,300 6"S.5 2,0^7 100.0 13,523 100.0 Total .2 Table 11 — HUHB3R OF 3JUSKS 1-7 CEAII? AZD GROUP SYSTSI-iS, 3Y SIZ3 OP TOW: JViB 30, 1931 Population of town ITumb or For cent of of •br;V!-s total Aggregate Per cent lotms rad of investments t o tal (000.000 omitted) Under 500 3^7 17.0 $63 .5 500 to 1,000 276 13.5 S6 .6 1,000 to 2,500 3^5 16.9 177 1.3 2,500 to 5,000 197 9.6 167 1.2 5,000 to 10,000 183 6.9 2U0 1.8 10,000 to 25,000 195 9.5 51+4 4.0 25,000 to 50,000 90 k.h 3S7 2.S 50,000 to 100,000 97 4.7 661 4.9 317 15.5 11,257 S2.9 2,0^7 100.0 13.5S3 100.0 100,000 end over Total 176 CHARTS PER HUNDRED 50 NUMBER OF BANKS IN CHAIN AND GROUP SYSTEMS PER HUNDRED ACTIYE BANKS PER HUNDRED BY SIZE OF BANK 50 Number of banks in ohain and group systems per hundred active banks as of June 30, 1930 fV Banks classified according to size of loans and investments 1 Tabic 12 — HUM3SR OF 3AI~'S IK CHAI3ST AMD GROUP SYSTEMS PER 100 ACTIVE BA1CS, BY SIZE OF L0A3S AI® IJTESTMEITTS: JTJH3 30, 1930 Size Groups Loans and i n v e s t m e n t s ISumbor of "brr>s i n chain and group systems p e r hundred a c t i v e banks Under $150,000 6.3 150,000 t o 250,000 2.3 250,000 to 500,000 s.s 500,000 to 750,000 9.0 750,000 to 1,000,000 10.0 1,000,000 t o 2,00,000 10.5 2,000,000 to 5,000,000 15.2 5,000,000 t o 10,030,000 lk.8 10,000,000 t o 50,000,000 27.S 50,000,000 and over 43.6 Total 9.7 I Table 13 -- BUJOER OF CHAI" A1TD GROUP SYSTEMS CLASSIFIED BY HUHS:-* 0? BATES IF EACH SYS72M, JUU3 30, 1 931 ITuriber of banks i n group Humber of chain group systems P s r cent Per c ent of Aggregate Aggregate total loans number of of baalts l o a n s and and i n v e s t bonks i n investments in a l l ments of a l l c h a i n and chain and of banj.cs i n chain and group chain and group systems systems group systems group systems (000 omitted) 11.0 28.2 225 $3,232,997 3 75 4 59 236 11.5 1,129,625 8.7 5 4o 200 9.2 432,190 3.2 6 31 186 9.1 494,S97 3.6 7 17 119 5.8 1,001,037 7.4 g 12 96 4.7 100,433 .8 9 15 135 6.6 946,729 7.0 10 11 110 5.4 357,782 2.6 11-15 12 154 7.5 1,734,249 12.8 16-20 8 i45 7.1 1,996,506 14.7 21-30 3 go 3.9 433,596 3.2 35 l 35 1.7 68,131 .5 46 l 1+6 2.3 252,915 1.9 50 l 50 2.4 42,307 .3 105 l 105 5.1 337,134 2.5 125 l 125 6.1 34g,562 2.6 2Sg 2,047 100.0 13,583,090 100.0 Total 179 P H I N C I P i l (SAIN AHD GROUP SYSTEMS ISO Table l 4 — PRINCIPAL GROUP SYSTEMS CONTROLLED 3Y HOLDING CORPORATIONS: JUN3 30, 1931 (Systems with 10 or more banks or $50,000,000 or more loans and investments.) Name and l o c a t i o n of controlling interest Transamerica C o r p o r a t i o n , Hew York D e t r o i t Bankers, I n c . , D e t r o i t Marine Midland Group, I n c . , Duffalo Guardian D e t r o i t Union Group, I n c . Detroit Manhattan Company, Hew York Northwest B a n c o r p o r a t i o n , Minneapolis f i r s t Bank g t o c k Corp. r K i n n e a o o i i s • 'Goldman Sachs Trading C o r p . , Hew York Wisconsin Bankshares Corp. , Milwaukee F i n a n c i a l I n s t i t u t i o n s , I n c . . A u g u s t a , Me. BancOhio C o r p . , Columbus, Ohio Melbank C o r p o r a t i o n , P i t t s b u r g h Socarnat Bank Corp., C h a r l e s t o n , S. C. Marine B a n c o r p o r a t i o n , S e a t t l e F i r s t S e c u r i t y Corp., Ogden, Utah Old N a t i o n a l Corp., Spokane, Wash. F i r s t H a t l . I n v e s t . C o . , B o i s e , Idaho T o t a l , 17 groups Nurnbc r of branches Outside Number In of head head Total banks** o f f i c e o f f i c e city city 20 84 219 17 54 29 4 75 13 125 105 3 46 15 10 12 10 10 27 24 10 4so 366 - so - 72 52 3 4 6 3 11 - 3 - - 27 14 - Loans and investments (000 omitted U50 $1,186,547 219 623,996 5^ 420,083 75 20 3 4 130 6 30 11 17 - 366.1U2 353,082 348,562 337,134 316,510 252,915 24,694 71,343 4S.774 37,004 35,314 35.ISO 32,274 11,502 6i4 1+65 1,079 4,621,056 *Not a typical "holding company" group, and since June has disposed of i t s i n t e r e s t in one of the 3 banks included above. **Exclusive of mutual savings banks and p r i v a t e banks. A Table 15 — PRIHCIPAL GROUP SYSTEMS CONTROLLED BY A BASK. OH TRUST COMPAHY: juira 30, 1931 (Systems with 10 or more "banks or $50,000,000 or more loans and investments.) Hame and l o c a t i o n of controlling interest Humber of branches Outside ITumber In head. head Total of banks** o f f i c e o f f i c e city city Chase n a t i o n a l Bank, Hew York 3 F i r s t n a t i o n a l Bank, .Chicago 9 Union Trust C o . , P i t t s b u r g h 7 C e n t r a l Hanover Bk. & T r . Co., Hew York 3 F i r s t N a t i o n a l Bank, Boston 20 S e c u r i t y F i r s t 11. B . , Los Angeles 1+ Peoples Pittsburgh Trust Co., P i t t s b u r g h 3 C e n t r a l T r u s t Co., Chicago 12 F i d e l i t y Union T r u s t Co., Howark 3 I n d u s t r i a l Trust Co., Providence 3 n a t i o n a l Shawmut Bank, Boston 6 Anglo-London P a r i s n . B . , San F r a n c i s c o 17 *Hat. Bank of t h e R e p u b l i c , Chicago 10 M. & T. T r u s t Company, Buffalo 3 F i r s t T r u s t & Deposit C o . , Syracuse 15 F i r s t n a t i o n a l Bank, A t l a n t a 7 F i r s t S e a t t l e Dexter Horton 11.B,, S e a t t l e 7 Commerce T r u s t C o . , Kansas City 6 U n i t e d S t a t e s H a t . Bank, P o r t l a n d , Ore. 12 Worcester Bank & T r . C o . , 'Worcester 7 American n a t i o n a l Bank, H a s h v i l l o 18 Exchange n a t i o n a l Bank, T u l s a 35 C i t i z e n s & Southern H a t . Bank, Savannah 7 0 F e d e r a l n a t i o n a l Bank, Boston F i r s t n a t i o n a l Bank, Birmingham Republic H a t . Bank & T r . C o . , D a l l a s 5 F i r s t n a t i o n a l Bank, L o u i s v i l l e 0 Hartford-Connecticut Tr. Co., Hartford Hamilton n a t i o n a l Bank, Chattanooga 17 P e o p l e s T r u s t & Guaranty Co.Hackensacl', . 10 M e r c a n t i l e Bank & T r . C o . , D a l l a s 10 Exchange n a t i o n a l Bank, Tampa 12 T o t a l , 32 groups Loans and investments (000 o m i t t e d ) i s 10 3 7 8 5 - 58 10 1 4 8 - S3 $1,732,57S 736,99*+ 581.873 577,447 15 562,843 35 126 459,417 186,321 s 183,492 156,700 ? 14 153,554 12 150,226 1 147,507 142,654 20 133,899 102,446 13 94,794 9 2 81,311 77,235 73,909 6 72,849 i4 69,264 68,131 11 67,364 7 63,273 53,892 53,283 8 5L91S 37,312 34,763 5 25,073 16,227 14.628 301 297 SI 37S 63 15 35 68 S 9 4 12 1 20 13 9 2 - 6,963,177 *Since June the n a t i o n a l Bank of the Republic has been absorbed by the Central Trust Company, the dominant bank in another group. ••Exclusive of mutual savings banks and p r i v a t e banks. Table 16 — PRINCIPAL CHA.IU SYSTEMS: JUNE 30, 1931. (Systems with 10 or more banks or $50,000,000 or more loans and investments.) Name and location of controlling interest W. C. Hepperiheimer, Jersey City* Otto Bremer, S t . Paul George Wingfield, Reno , Nev. James IP. Toy, Sioux City J. G. & H. H. Wilkinson, Port Worth John Clay, Chicago M. Weil & Family, Lincoln„ Neb. A. 3D. Sleeper, Bad Axe, Mich. Isaac Hazlett, e t a l , Minneapolis Thurmond Bros., Oklahoma City C. A. McCloud & Assoc. York, Nebr. J . M. Crews, Childress, Tex. M. C. P a r r i s h , et a l . , Austin, Tex. Total, 13 chains Number of banks** Loans and investments (000 omitted) 10 n $80,878 ^8,307 a,306 12,976 7,836 7,381 7,328 ^,023 5,05^ 3,775 2.857 2,03^ 1.099 192 204,854 u 3 50 13 18 11 10 10 13 18 15 10 *The banks in t h i s chain have a t o t a l of ten branches, eight in the head office c i t y and two outside the head office c i t y but in t h e same county as the head office. None of the other banks in the above l i s t of chains operate branches. *I5xclusive of mutual savings banks and p r i v a t e banks. 183 CHART 5 NUMBER OF BANKS IN 49 PRINCIPAL GROUP SYSTEMS NUMBER BY SIZE OF BANK 300 NUMBER 300 Number of banks in 49 principal group systems as of June 30, 1931 Banks classified according to size of loans and investments 1,84 Table 17 — BUM3ER OF MJT.S IN 49 FRE^IPAL &E0UP SYSTEMS, 3Y SIZE OF LOAKS A2D IiiVSSTLGEJTS: JUNE 30, 1931 Size Groups Loans and i n v e s t m e n t s Humber of banks P e r c ent of total .Aggregate Per cent l o a n s and of investments total (000.000 omitted) Under $150,000 43 5.5 $4 150,000 t o 250,000 59 7.5 12 .1 250,000 to 500,000 110 14.1 42 .4 500,000 to 750,000 S3 10.6 52 .5 750,000 to 1,000,000 57 7.3 50 .4 1,000,000 to 2 , 0 0 0 , 0 0 0 135 17.3 195 1.7 2,000,000 to 5 , 0 0 0 , 0 0 0 128 16.4 390 3.4 5,000,000 to 1 0 , 0 0 0 , 0 0 0 66 2.5 10,000,000 to 50,000,000 56 7.2 1,204 10.3 50,000,000 and over 44 5.6 ' 9,222 79.1 11,641+ 100.0 Total 761 100.0 4.1 Table IS — SUISBER OFBLIZS I ? l|g PHIBCIPA1 GROUP SI'STSMS, BY SIZL OF TOOT; JDH3 3 0 , 1931 • llumber of "banlis Per c ent of total Aggregate l o a n s and investment s (000.000 omittod) Under 500 35 K5 $6 .1 500 to 1,000 6o 7.7 26 .2 Population of town P e r cent of total 1,000 to 2,500 129 16.5 73 .6 2,500 to 5»ooo 85 10.9 77 .7 5,000 t o 10,000 SO 11.5 131+ 1.1 10,000 to 25,000 110 lU.i 325 2.8 25,000 to 50,000 hi 5.2 200 1.7 50,000 to 100,000 h5 5.8 U32 3.7 186 23.8 10,371 89.1 781 100.0 11.6HU 100.0 100,000 and over Total 186 APPENDICES 187 APPENDIX I HUM3SR OF AIL BJ^JS IiT TEE UiTITSD STATES AHD BANZS ASD BRANCHES 1ST CEiIIi-7 iiiffi GROUP SYSTEMS: JUE3 30, 1931 States classified ' a c c o r d i n g to law r e g a r d i n g "branch banking Total number of ban!:s i n ITuinber of branches number of chain "-nJ. group s y s t ems of banks i n chain branches and sroup systems o p e r a t i n g brsmches of ban".-.:s Outside In City* Other i n chain head head Total branch b r a n c h and group o ffice o f f i c e systems systems systems city city STATS-WIDE BRA1TCE BAMI1J& PERMITTED Total number of "banks' All a c t i v e i n chain hanks v.nd group systems Arizona California Delaware D i s t . of Col. Maryland North C a r o l i n a Rhode I s l a n d South C a r o l i n a Vermont Virginia Total 6 1 51 1 637 - 1 _ 3 1 2 84 U30 i4 is 1 i4o l 3 11 - - - 1,754 72 670 13 3 10 161 11 37 4io 59 39 205 324 26 _ - — _ 1 S mm — — 6 153 — — — 4 4 2 1 — 4s4 — — 10 lit — - 509 BEAiTCHES RESTRICTED AS TO LOCATION Georgia Indiana Iowa Kentucky Louisiana Maine Massachusetts Michigan Mississippi Montana Hew J e r s e y Hew York Ohio Pennsylvania Tennessee Total 344 713 1,107 515 206 90 248 672 267 165 515 904 871 l,4l8 433 2.4 13 60 6 21 IS 50 111 23 45 90 106 10 5S 8.46S 19 2 1 l - - - 2 1 1 9 7 15 2S 1 — 1 - 5 4 7 2 s 42 35 62 333 12 - 13 28 - 1 2 - - 23 21 1 35 3^ 10 21 21 1 6 6 670 94o 126 103 7 l - 55 314 11 13 — 8 29 3 60 333 - - 2 - 13 32 2 - 12 - 6 1 4 49 314 11 12 20 1 14 23 850 90 - *l»©lua.es o:m.wd o p e r a t i n g ur'Uicn.es only i n head >r»*.~i~-& c i t y and contiguous t e r r i t o r y . 8 - - 1.88 APPEIIDIX I ( C o n t ' d ) NUMBER OF ALL BABES IN THE UNITED STATES AED EATCS AMD BRANCHES i r CEAIiT AND GROUP SYSTEMS: JUNE 30, 1931 States classified 1 All a c c o r d i n g to law r e g a r d i n g active branch banks banking Total number of banks i n chain •wd.group systems Number of banks i n Total Number of b r a n c h e s number of chain 'iad group systems of banks i n c h a i n o p e r a t i n g branches branches and group systems of banks In Outside City* Other i n c h a i n Total b r a n c h branch head head and. group office o f f i c e systems systems systems city city IBTABLISHM3NT OF BRANCHES PROHIBITED 3Y LAW 28k 321 250 156 193 131 1,463 972 Alabama Arkansas Colorado Connecticut Florida Idaho Illinois Kansas Minnesota IvfiLssouri Nebraska Nevada Hew Mexico Oregon Texas Utah Washington West V i r g i n i a Wisconsin 5k 1+5 65 933 S7 270 27 33 17 1,100 727 51 215 1,176 66 5 307 262 910 29 104 25 81 1 85 9.5SO 1,033 96 Total 26 IS 11 17 mm — M , 1 1 _ — _ - _ — _ - X — — - - _» — — - — _ — — — - 1— — - 2 2 — - — - - k 2 1 1 - - - - 6 3 6 - 17 8 •3 6 - 2 15 2 6 6 - 3 1 MP PROVISION IF STATE LAW HSGAHDI1T6 BRANCH BANK INS Total Total a l l National S t a t e members Nonrnembers - _ — - — - _ - — - - - 1,026 601 302 550 318 82 95 3k 58 25 1,321 272 - - 2,0^7 1,627 147 112 35 5k 37 56 1+8 33 6 k 4io 533 31 25 S3 s t a t e s 21,123 6,800 982 13,3^1 _. _ - _ - 69 Hew Hampshire North Dakota Oklahoma South Dakota Wyoming 838 121 1,088 792 601+ 231 n - • I n c l u d e s banks o p e r a t i n g branches only in herul o f f i c e c i t y and contiguous t e r r i t o r y . 382 71 14-8 i.89 APPETDiSX I I S T M E H T S 0 ? ALL 3A21KS ALTD OF BAMS HI CHAIK AiTD GSOuP ,"5TEMS LOANS M D H T J SiiSTM JUxJE 30, 1931 (000 o m i t t e d ) States c l a s s i f i e d according t o law r e g a r d ing "branch "banking All ac t ive "bni.s A l l "banks i n c h a i n and group systems Banks 3.n c h a i n and group systems 5 o-peratirj.,2.' "branches C i t y * Other irancl--1.1 branch nystens J Total Systems 1 SfSAiJiJ-Winm BRAIN'CH 3AHKIJG. 1'ZLJSXED W65 Arizona California Delaware D i s t . of Columbia Liar y l a n d ITorth C a r o l i n a Rhode I s l a n d South C a r o l i n a Vermont Virginia $52,701 3,149,193 135,504 249,483 617,403 278,577 353,054 136,43s 142,735 489,084 $15,507 1,766,763 2,973 153,554 40,910 - $760 $3,601 1,584,709 142,783 27,30s 2,86l - 1,588,310 142,783 30,169 - Total 5,524,173 1,979,707 6,1*62 1,755,555 1,762,028 3EMCE3S RESTRICTED AS TO LOCATION Georgia Indiana Iowa Kentucky Louisiana Maine Lias s achus e 11 s Michigan Mississippi Montana Hew J e r s e y Hew York Ohio Pennsylvania Tcnnossee Total 301,884 1,942,457 1,722,276 147,477 119 ,'482 1,953,337 LI,598,b32 2,315,657 5,120,128 3^7,952 71,551 163,537 46,026 71,954 51,918 26,331 140,^55 84,340 95,390 864,761 735,921 1,120,001 939,437 22,315 70,147 435,987 090,055 3,808,245 3,595,072 71,343 29,794 951,941 206,628 135,394 94,951 56,14S 571 21,872 55,454 29,711 4,822 70,042 1,274 24,537 127,809 571 26,331 106,212 65,454 765,632 939,437 4,822 ^06,029 3,595,072 29,794 207,902 119,488 28,082,517 8,303,594 6,221,122 274,441 6,495,563 291, 430 531,320 582,833 421, 243 376,50c • I n c l u d e s "banks o p e r a t i n g "branches only i n head o f f i c e c i t y and contiguous t e r r i t o r y . 190 APP^iSlX I I (Cont'd) LOUIS iSD IUV3STK3LJTS OF ALL 3AHKS AND OF BAMS III (HALT A17D GROUP S ^ S M S juira 30, 1931 (000 omitted) States c l a s s i f i e d according to law r e g a r d i n g "branch banking All active banks A l l Banks i n Banks i n c h a i n and •^Tov.-g • systems o p e r a t i n g b r a n c h e s chain and City* Other Branch group Total Branch Systems systems Systems | SSTABLISEUZLT? OF BHANCH3S PBOHLDITZJD BY LAW Alabama Arkansas Colorado Connecticut Florida Idaho Illinois Kansas Minnesota Missouri Nebraska Nevada Hew Mexico Oregon Texas Utah Washington West V i r g i n i a Wisconsin 226,032 135,371 2Ul, 269 593,514 139,5bl 67,561 3,207,106 325.79S 733,065 1,102,347 303,456 33,944 35,136 229 ,450 S3 5,121 150,032 4i,i45 542,321 136,310 62,354 23,39s 1,433 125,675 109,973 43,493 253,754 208,"01 1,43b 302,414 10,053,209 3,094,035 333,324 301,70s Total 61,674 14,129 23,743 97,324 131,295 37,352 1,122,395 - 153,027 - 71,730 - 1So,069 394,325 1S9 159 - - 163,027 3,oii 74,741 - - l60,Ob9 - 3,130 393,005 ITO PROVISION HI SEATS LAW REGARDING BEA1TCH BANKING 44,424,934 13,533,090 6,622,410 2,033,137 s,655,597 20,824,530 13,097,992 10,502,412 3,062,050 3,730,387 1,790,153 3,730,015 1,442,766 2,549,349 421,956 292,546 168,465 5,222,731 2,971,305 461,011 1 National S t a t e members Nonmembers ' 205,754 1 states 654,935 - 1 Total a l l 80,451 45,432 IS,430 55,44i 1 .Total - - - • I n c l u d e s banks o p e r a t i n g branches only i n *iead o f f i c e and contiguous t e r r i t o r y . - 73,623 38,564 327,54s 108,015 52,030 1 U©tr Hanip s h i r e North Dakota Oklahoma South Dakota Wyoming city