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FEDERAL RESERVE COMMITTEE O l
i
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Confidential and not for Publication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 t < 10,000,000
o

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 con'
solidation.
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 N M E Of BANKS IN THE UNITED STATES E O 1920 TO 1930
U BR
RM
(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

18
+

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
11
+
50

37
3

£
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

I
85
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

75
.

100,000 and over

12.7

3.5

Average

23.5

76
.

•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

18
+

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
Per
Per 1 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
117
,*5
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
2,11
56**
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 " y
b
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
16
+
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 o i of higher salaries and wages, higher overhead
it
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 O ALL NATIONAL BANKS
'R
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
investments
loans and :
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. ( t
f-

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
.40
$ 61-

$ 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 ern
tinent ern
tinent
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 Number banking
law regarding
number
offices
of
offices
of
branch banking
of banks
banks (banks and banks (banks and
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 (000. omitted) t o t a l
branches
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
city
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 i D IX
T

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

A
ESTABLISHED C ? 3EA1*CE3S PR0EI3IT3D BY L W
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

17
2

—
—
—
—
—
-

6

-

-

_
—
—
—
—
—
—
-

-

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 L W REGARDING BRANCH 3ANKING
A
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
1

t

l

Total

1

1

1 1 1 1
1 1 1 1

1

i

302
550
318
82

l

1
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! A T GROUP SYSTEMS
2D
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 1 1 chain and group systems
1
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
total
!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
total
(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 A D GROUP SYSTEMS PER 100
M
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 G O P SYSTEMS CONTROLLED 3Y HOLDING CORPORATIONS:
RU
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

Loans and
investments
(000 o m i t t e d )

i
s

T o t a l , 32 groups

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
office
office
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

l

-

-

2

8
29
3
60
333

1

-

-

55
314
11
13

23
21
1

35

3^

10

21
21
1
6
6

670

94o

126

103

7

—

-

-

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 A D BRANCHES
M
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
office
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

26
IS
11
17

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

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 L W HSGAHDI1T6 BRANCH BANK INS
A

Total a l l

—
-

_
-

—

-

-

-

1,026

601

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

National
S t a t e members
Nonrnembers

-

_
—
-

302
550
318
82

Total

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
STM
LOANS M D H T J SiiSTME H T S 0 ? ALL 3A21KS ALTD OF BAMS HI CHAIK AiTD GSOuP ,"5TEMS

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
1
C i t y * Other irancl--1.
branch
nystens
J Total
Systems
1

SfSAi
JiJ-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 |

A
SSTABLISEUZLT? OF BHANCH3S PBOHLDITZJD BY L W
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

61,674
14,129
23,743
97,324
131,295
37,352
1,122,395

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

-

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
U©tr Hanip s h i r e
North Dakota
Oklahoma
South Dakota
Wyoming

6,622,410 2,033,137

s,655,597

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

13,533,090

20,824,530
13,097,992
10,502,412

55,44i

-

1
1
1
1

National
S t a t e members
Nonmembers

' 205,754

44,424,934

states

80,451
45,432
IS,430

654,935

.Total
Total a l l

-

73,623
38,564
327,54s
108,015
52,030

-

• 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 .




-

-

city