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On October 28, 1929, the Board requested the Federal Advisory Council to consider the following topic at its meeting on
November 19, 1929, and to submit to the Board such recommendation as
the Council saw fit to make with respect thereto:
"Developments in branch, chain and group banking with particular reference to the effects of bank stock ownership
by investment trusts and holding corporations.11
As a result of its meeting, the Council submitted the following recommendation to the Board:
"The Federal Advisory Council recommends that the
Federal Reserve Board appoint a committee to study the
merits of the branch banking system as practiced in this
and other countries, (conditions in Canada being apparently more comparable with our own), the group or chain
banking system as developed in this country and elsewhere, and the unit banking system of this and other
countries; and further, the effect of ownership of bank
stocks by investment trusts and holding corporations,
in order that the Federal Reserve Board may be in possession of accurate and authoritative information on
this important subject."
The Federal Reserve Agentsf Conference and the Governors*
Conference on December 11 and 12, 1929, respectively, voted to concur in the recommendation of the Federal Advisory Council.
On December 12, 1929, the Board voted "that in order to
expedite the assembling of data on branch, group and chain banking
that is being carried on in the Board* s Division of Bank Operations,
a committee of five be appointed by the Board, as recommended by the
Federal Advisory Council and the Conference of Federal Reserve Agents,
to assemble and digest information on branch banking as practiced in
the United States, group and chain banking systems as developed in
the United States and elsewhere, the unit banking system of this and
other countries and the effect of ownership of bank stocks by investment trusts and holding corporations, in order that the Board may be
in possession of accurate and authoritative information on the
At the meeting of the Board on February 26, 1930, Governor
Young stated that "he met this morning with the committee recently
appointed to make a study of the subject of member bank reserves

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and had suggested to the committee that the Board may find it desirable to also appoint the members of the committee on reserves as a
committee to study the development of chain, group and branch banking
in the United States* He stated that, inasmuch as the committee
would have to give considerable thought to this subject, in connection with its study on reserves, the members would be willing to
serve on both committees should the Board desire to take such action."
In accordance with this suggestion Messrs. Goldenweiser and Smead,
of the Board1s staff, and Messrs. Rounds, Fleming and Clerk, representing the federal reserve banks, were appointed as members of the
committee on branch, group and chain banking.
On April 24, 1930, the Federal reserve banks were advised
that the Board had votedf subject to approval of the Federal reserve
banks (which was promptly given), to change the committee on branch,
group and chain banking from a Board to a Federal reserve bank committee, its expenses to be borne pro rata by the Federal reserve
The total expenses involved in connection with the preparation of the report, exclusive of certain overhead expenses including
principally the salaries of the members of the committee, were #151,000.
The last of the eleven volumes comprising the report was completed in
final f o m in June 1933 so that approximately three years were required
for the study.
The subjects covered by the report and the number of pages
contained in each study, exclusive of appendices, are as follows:

Changes in the Number and Size of Banks
in the United States, 1834-1931
Banking Groups and Chains
The Dual Banking System in the United
225 Bank Suspensions, Case Histories from
Examiners1 Reports
Bank Suspensions in the United States,
Banking Profits, 1890-1931
Branch Banking in the United States
Branch Banking in California
Branch Banking in. England
Branch Banking in Canada
Summary of the Reports

Number of pages,
exclusive of



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Copies of the report (exclusive of the summary) were sent
to Senator Glass, as the volumes were completed in April and May
1933, to all Federal reserve banks under date of August 8, 1933,
to Mr. R. H. Sparkman, Acting Clerk of the Senate Committee on
Banking and Currency on September 22, 1934, and to Mr* Leo T.
Crowley, Chairman of the Federal Deposit Insurance Corporation,
on October £, 1954. The copy of the report at the Chicago bank
was made available to the Secretary of the Federal Advisory Council
in August 1933. On June 29, 1934, Mr. Goldenweiser was authorized by the Board to make a copy of the report available to Dr.
Viner, Assistant to the Secretary of the Treasury. The parties
outside the System were advised that the report had not been passed
upon by the Board.
The minutes of the Board for August 1, 1933, indicate
that Mr. Riddle, who had been executive secretary of the committee
on branch, group and chain banking, and who was then employed by
the Reserve City Bankers Association, advised that the Association
would like very much to see the report published, and that, in
the event the Board did not wish to have the report printed at
its own expense the Association would be glad to defray the expenses of publication. The minutes also indicate that Mr.
Goldenweiser, as Chairman of the committee, felt that the report
should be published. The Board, however, requested its secretary
to advise Mr. Riddle that the Board was not prepared to publish
the report at that time, and that if and when the report was published it should be at the eapense of the Board as an official
Board publication and not at the expense of any other organization. Subsequently a similar request was also received from Mr.
H. Lane Young, a member of the Commission on Banking Law and
Practice appointed by the Association of Reserve City Bankers,
for permission to have the report published for the use of the
various subcommittees of the Commission and the general public,
and Mr. Young was advised that the Board felt it should not grant
such permission.
At the meeting on August 1, 1933, Mr. Morrill called
attention to the fact that the report had nefer been passed upon
by the Board, and that he had been informed tliat the copy of the
report which was furnished to Senator Glass for the information
of his subcommittee of the Senate Banking and Currency Committee
was being made available to anyone who desired to see the report
in Senator Glass1 office.
At the meeting of the Governors1 Conference with the Federal Reserve Board on October 12, 1933, it was reported that the
Conference had voted to recommend to the Board the reconstituting

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of the committee on branch, group and chain banking, for the purpose of amending the report in the light of events which had transpired since the report was prepared. The Board advised Governor
Calkins, as Chairman of the Governors1 Conference, on November 9,
1933, that the Board had given careful consideration to the recommendation of the Conference and had decided that it should be held
in abeyance until after the then present emergency was past, and
that further consideration would be given to the matter when the
Board was in a position, in the light of later circumstances, to
determine whether further revision of, and addition to, the committee report would be desirable* There is nothing in the files
or the minutes of the Board to indicate that any further action
was ever taken by the Board with respect to the recommendation of
the Governors1 Conference.