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Digitized for FRASERhttp://fraser.stlouisfed.org/Federal Reserve Bank of St. LouisBRANCH BANKING IN THE UNITED STATESMaterial prepared for the inforraation of theFederal Reserve System "by theFederal Reserve Committee onBranch, Group, and Chain Banking
Members of the CommitteeE. A, Goldenweiser, Director, Division of Research and Statistics,Federal Reserve Board, ChairmanIra Clerk, Depaty Governor, Federal Reserve Bank of San FranciscoM. J. Fleming, Deputy Governor, Federal Reserve Bank of ClevelandL. R. Rotmds, Deputy Governor, Federal Reserve Bank of New YorkE. L. Smead, Chief, Division of Bank Operations, Federal ReserveBoardJ. H. Riddle, Executive Secretary and Director of ResearchThe Committee was appointed February 2o, 1930 " 7 theFederal Reserve BoardDigitized for FRASERhttp://fraser.stlouisfed.org/Federal Reserve Bank of St. LouisM . . to assemble and digest information onbranch banking as practiced in the United States,group and chain hanking systems as developed inthe United States and elsewhere, the unit bankingsystem of the country, and the effect of ownershipof bank stocks "by investment trusts and holdingcorporations J1
LETTER OF TRANSMITTALTo the Federal Reserve Board:The Committee on Branch, Group, and Chain Bankingtransmits herewith a history and statistical analysis ofbranch banking in the United States. The statistical seriesin this volume in most instances end with the year 1931 Digitized for FRASERhttp://fraser.stlouisfed.org/Federal Reserve Bank of St. LouisRespectfully,E« A. GoldenweiserChairman
Digitized for FRASERhttp://fraser.stlouisfed.org/Federal Reserve Bank of St. LouisCONTENTSPagegrowth and Distribution of Branch Banking in theUnited StatesBranches of State and National BanksGeographic Distribution of BranchesDistribution of Branches by Size of TownClassification of Branches oj Size of Bank orBranch SystemSianmary147192227Branch Banking before the Civil WarEarly Branch Banking in New York and New EnglandFirst and Second Banks of the United StatesState Bank Branch SystemsBranches in the Southern States2929323844Branch Banking and the National Bank ActFree BankingProhibition of Branch BankingProvisions of the Act Prohibiting BranchesAmendment to Permit Branches of ConvertedState BanksNo Mention of Branches in Congressional DebatesEffects of the National Bank ActStommary47495253Movement for Branch Banking, 1892-19027161656768Branch Banking among State BanksGrowth of City BranchesNew YorkMassachusettsOhioMichiganGeneral Features of Urban Branch BankingIntercity Branch BankingBearing of State Bank Branches on the Controversy9999100103105106109111112The McFadden ActThe Policy of the Federal Reserve BoardThe policy of the Comptroller of the CurrencyThe St. Louis CaseThe McFadden BillEffects of the Act117119128137139152
Digitized for FRASERhttp://fraser.stlouisfed.org/Federal Reserve Bank of St. LouisCONTENTS (Cont'd)PageThe 01 ass Bill and Branch BankingThe House Hearings, 1930Glass Bill, 1932Opposition to the Glass Bill155156164170State LawsScope of Survey and Sources of InformationSources of InformationTerminologyChanges in Laws of Individual ecticutDelawareDistrict of daNew HampshireNew JerseyNew MexicoNew YorkNorth CarolinaNorth 195196196197197197198198199
Digitized for FRASERhttp://fraser.stlouisfed.org/Federal Reserve Bank of St. LouisCONTENTS (Cont'd)PageOklahomaOregonPennsylvaniaRhode IslandSouth CarolinaSouth est VirginiaWisconsinWyomingInterstate BranchesSummary of State LawsIXXOrganization and Operation of Branch SystemsRelations to Communities ServedCredit PoliciesOperating EconomiesBranches and 0720J20921121521722U225Public Attitude toward Branches22SSuspensions of Banks with Branches23OAppendix2U2Bibliography2 9
CHAPTER ISROWTE AND DISTRIBUTION OF BRANCH BANKINSIN THE UNITED STATESBranch hanking was not uncommon in the United States prior to theCivil War,Following the passage of the National Bank Act in 1853, however,public policy became committed to the unit banking system*With bankingcorporations limited in general to one office, the kind of concentrationwhich builds on branch offices was barred.From the end of the Civil Waruntil around 1900 there was very little branch banking in the United States*The majority of State banks and their branches in existence prior to the CivilWar -*M«H«MiMr converted into unit national banksj, «? failed as a result ofthe conflict, or liquidated as a result of the tax imposed on their note issuesby the National Bank Act*With the growth of deposit banking, however, whichgradually supplanted issue banking, the number of State banks began to increasetowards the end of the century, and the development of present day branch banking in the United States may be said to date from approximately that time.In 1900, according to the best information available, there wereonly about 119 branches in existence*A gradual growth brought the number to735 in 1915, after which the increase was accelerated so that by 1920 therewere 1,281 branches*During the next ten years the number nearly trebled to3,518 in 1930. In 1931 the suspensions resulted in a decrease in the numberof branches as well as of unit banks.The thirty-one year movement is illus-trated in Chart 1*The greater part of the growth through 1930 was among branches located within the same city as the head office of the bank operating them;at the end of that year roughly two-thirds of the branches in the countrywere in the city of the head office.Digitized for FRASERhttp://fraser.stlouisfed.org/Federal Reserve Bank of St. Louis
Digitized for FRASERhttp://fraser.stlouisfed.org/Federal Reserve Bank of St. Louis- 2 -CHART 1NUMBERBRANCHES Of BANKS IN THE UNITED 191019151920192519301935Number of branches of State and national banks in the unitedS t a t e s , 1900-1931. From 1900-1920 the figares are for fiveyear i n t e r v a l s , but from 1920-1931 they are annual*
- 3-Table 1 - Number of Branch Systems and Somber of Branchesin the United States, 1900-19311Year 92S1929 1930 !June 1931 'Dec. 1931 j1 Number ofbanks with1branches871962923975305 761067170671974373?77*763750722677Numbei of branchesiOutsideInj head office i head o f f i c e !Totalcitycity[25135271435i?!91 215277350508551i645779041,1561,3271,51 2495U9961,0761,1311,1641,158119350i 548! 785; 1,281 1. 551,8012,0542,2972,5242,7012,9123.1363.3 93,5183,4633.334(l)Por the years 1900 to 1923, inclusive, the figures arenot as of any uniform month. For 192* they are as ofJune, for 1925 and 192 as of December, and for 1927to 1930» inclusive, they are as of June*Note: This and following tables give revised figures forthe years 192U-1930f inclusive, on the basis of additional data received since the preparation of previoussummaries of branch banking by the Federal ReserveBoard, Furthermore, mutual savings banks and privatebanks reported as operating branches have been omitted.Mutual savings banks thus excluded numbered 72 at theend of December, 1931, with 112 branches and loans andinvestments of 4,090,606,000. Private banks excludednumbered k on the same date, with 5 branches and loansand investments of 2,859*000. Where comparisons inthese tables are made with all active banks, privateand mutual savings banks have likewise been eliminatedfrom the active bank figures.The number of banks operating branches, as shown in Table 1,increased from 87 in 1900 to 677 in December, I93I. Since the declineDigitized for FRASERhttp://fraser.stlouisfed.org/Federal Reserve Bank of St. Louis
- 4 -in the number of banks operating branches from 1928 through the threesucceeding years was not accompanied by a corresponding decrease in thenumber of branches, it is apparent that the movement does not indicatean abandonment of branch banking, but rather a concentration of it in thehands of fewer banks.Branches of State and National Banks, - Prior to 1922 the development of branches was limited almost entirely to State banks, as shown by Chart2.Occasionally a State bank with branches was converted into a national bankand retained its branches, or was absorbed with its branches by a nationalbank.The growth in the number of branches of national banks from thissource was slow, however, and in 1921 there were only 72 branches of nationalbanks compared with 1,383 branches of State banks. Beginning in 1922 thebranches of national banks increased much more rapidly, and on December 31,1931, aggregated 1,274 compared with 2,060 for State banks. The growth ofnational bank branches from 1922 to 1927 was due chiefly to the "additionaloffices" authorized by the Comptroller of the Currency in cities where Statebanks were permitted to have branches. At the same time there was an increasing number of conversions of State banks with branches into national banks andof absorptions of such State banks by national banks.atedThe growth was acceler-by the passage of the McFadden Act on February 25, 1927, which, withcertain restrictions, expressly permitted national banks to establish branchesin cities where State banks may have them.The passage of this act alsoprecipitated the conversion of certain State banks with numerous branches intonational banks and caused the number of State bank branches to decline temporarily.Digitized for FRASERhttp://fraser.stlouisfed.org/Federal Reserve Bank of St. Louis
Digitized for FRASERhttp://fraser.stlouisfed.org/Federal Reserve Bank of St. Louis- 5 -CHART 2NUMBERBRANCHES OF NATIONAL AND STATE BANKSIN THE UNITED STATESNUMBER2500250020002000BRANCHES OF/STATE BA*IKS /15001500/r1000//S 11 1000iBRANCHES OF/NATIONAL BANKS/1 '/500ot1900190519101915A1920. 1 . 1 . . .1L- J1925L 15001 1 j119301935Number of branches of State and national banks in the UnitedStates, 1900-1931. prom 1900-1920 the figures are for fiveyear intervals, but from 1920-1931 they are annual.
- 6The relative importance of State bank branches and of nationalbank branches varies extremely in different cities; in New York, for instance, there are 3U9 branches of State banks against 192 branches of national banks, while in Detroit there are only 51 branches of State banksagainst 218 branches of national banks.But taking ten or fifteen of thelargest cities as a whole, branches of State banks and of national banksare nearly equal in. number.Among branches in smaller towns and outsidethe city of the head office, however, State bank branches are much morenumerous than national bank branches.Chart 2 illustrates the relativegrowth of branches among State and national banks and Table 2 gives thefigures.The decline in the number of branches of State banks betweenJune 30, 1930 a & & the end of 1931 was due mainly to the absorption by national banks of two State banks in California and in Michigan and to thefailure of a State bank in New York.T&ble 2 - Number of State and National Banks with Branches and Numberof Branches in the United States, 1900-193 1Year State banks National banks1 Number]NumberNumber of branchesofof1. Statenational1 OutsidebanksheadbanksheadTotalwithwithoffice 192119221923192419251926192719281929 1930June 1931 1Dec. 1931!559122123 37384 J433l595650290 dofficecity1Digitized for FRASERhttp://fraser.stlouisfed.org/Federal Reserve Bank of St. Louis134270 1420;59558660359658455S520Total90211.11431*5266 281760 2,0411,428778 2,206787 1 2,2801,493i664 i 2,1891,525!1,545657 2,2021,623731 2,35 792 2,4761,684768 2.3531.5852,0601,291769i7321See Note to Table 1.1 Outsideheadofficecity2482283385? i191122672l4o204Number of branches!
- 7Of the 3,33 branches in operation on December 31, 1931tthenumber of branches of member banks of the Federal Reserve System, national and State, was 2,3 7, and of nonmember banks, 987*Thenumber ofmember banks with branches was 298, and the number of nonmember bankswith branches was 379* Member banks are of course larger on the averagethan nonmember banks and have individually a larger number of branches.Geographic Distribution of BranchesThe geographic distribution of branches in the United States isdetermined largely by the State laws regarding branches*Nine States andthe District of Columbia permitted state-wide branch banking at the endof 1931t and fifteen States permitted some form of branch banking restrictedas to area*The other twenty-four States at that time either prohibitedbranches or made no provision in law for them.Chart 3 shows in generalthe legal status of branch banking in each State on December 19 1931*a Tables I and II of the Appendix classify the States on the same basis* (1)Simple classifications, such as are followed in Chart 3 and in Tables 3and U, which show figures for States restricting branches as to locationand for States permitting state-wide branch banking, do not do justice toall the legal differences and uncertainties that obtain*Virginia, forinstance, is classified as permitting branch banking state-wide, thoughin fact her law restricts branches to cities of 50,000 or more* Again,Kentucky is classified as restricting branches as to location, though thelegal decision on which the Kentucky mile is based puts the restriction onfunction.The situation in each State is reviewed in a subsequent chapter.(1) Wisconsin lias subsequently amended her law to permit a limited formof branch banking*Digitized for FRASERhttp://fraser.stlouisfed.org/Federal Reserve Bank of St. Louis
-8-CHART 3STATUS OF STATE L A W S ON BRANCH BANKINGDECEMBER 31,1931 Branches unauthorizedor prohibitedfaylaw Branches restricted as to locationI[ State-wide branch banking permittedSee vp 209, 210 for summary of State laws and appendix p' fordigest of State laws. Wisconsin passed a law in 1932 permittinga restricted form of branch bankingDigitized for FRASERhttp://fraser.stlouisfed.org/Federal Reserve Bank of St. Louis
Digitized for FRASERhttp://fraser.stlouisfed.org/Federal Reserve Bank of St. Louis- 9 -CHARt BRANCHES OF BANKS IN STATES PERMITTING BRANCHESNUMBER2 50011— 1!11NUMBERI-'T/ 2000/I 2500A.V\2000//INSTATESREST RICTIN6 BRANCHES/AS TO LOCATION /1500/ /tooo ./500 d190O1905yS*///r'///1500/1000 X IN STATESXPERMITTING/STATE-WIDE/BRANCH BANKING500. . - "I191019151920iii1925111!1,1930Number of branches of State and national banks in thoseStates whioh on December 31, 1931, permitted the establishment of state-wide branch systems and branches restricted as to location1Jo1935
Digitized for FRASERhttp://fraser.stlouisfed.org/Federal Reserve Bank of St. Louis- 10 Table 3 - Branch Systems in States Restricting BranchesAs to 4192519261927192819291930June 1931Dec. 1931Number oftanks 5Number of "branchesOutsideInhead office head 41,236i,32ol 6481.7441.8972,0502,1852,1412,055(1) Legal status as of December Jl, 193*» These StatesaretGeorgia, Indiana, Iowa, Kentucky, Louisiana,Maine, Massachusetts, Michigan, Mississippi, Montana,New Jersey, New York, Ohio, Pennsylvania, Tennessee*TablS U * Brandh Systems in States PermittingState-wide Branch 192519261927192819291930June 1931Dec. 1931! Number ofbanks with branchesNumber of branchesOutsideInhead officehead 91,2501,2861,2761,236(2) Legal status as of December 31, 1931« These .States are:Arizona, California, Delaware, District of Columbia,Maryland, North Carolina, Ehode Island, South Carolina,Vermont, Virginia*
- 11 -Over 60 per cent of the "branches in the country are in thefifteen States restricting branches as to location, as illustrated inChart k and Table 3 #These branches are mostly in the same city as thehead office of the bank operating them.In fact the restriction which ismost comoion and most important in these States is that branches be keptwithin the same city or county as the head office. Branch banking in restricted areas, therefore, is largely tantamount to branch banking insidethe city of the head office. The development of branches in these restrictedareas has been more rapid than in the States permitting state-wide branchbanking.This is due largely to the fact that the States restricting branchesas to location include many populous and wealthy cities where there is actually more scope for branch banking than in the majority of States where it isstate-wide.The States that permit restricted branch banking are listed inTable 5 ia the order of the number of branches as of December 31* 1931*Digitized for FRASERhttp://fraser.stlouisfed.org/Federal Reserve Bank of St. LouisTable 5 - Number of Branches in States RestrictingBranches As to LocationInStatehead office1cityNew York1MichiganOhioPennsylvaniaNew head officecity690Total!-385183122115110517?6 766673*16ll69S73675S83k9-2UIS196903S521312612 k&1220272321——1.7H63092,05521
- 12 -Table 6 - Number of Branches in States PermittingState-wide Branch BankingiStateCaliforniaMarylandNorth CarolinaSouth CarolinaVirginiaBhode IslandDistrict of ColumbiaArizonaDelawareVermont In1 head officecityOutsidehead officeicity25S591292916265 34972622820-2510102 TotalI tion of the relative size and commercial importanceof the States listed in Tables 5 and 6 will make it obvious why branchbanking in States permitting it on a state-wide scale (Table 6) has developed more slowly than in States restricting branches as to location(Table 5 ) # According to Tables 7 and 8, the States permitting statewide branch banking had a total of only 2,323 banking offices with loansand investments of less than 5 300,000,000, while in the States wherebranches are restricted as to location there were 9 #666 offices andloans and investments of almost 25»000,000,000.Digitized for FRASERhttp://fraser.stlouisfed.org/Federal Reserve Bank of St. Louis
13-Table 7 - Number of Banks and Banking Offices in Branch SystemsCompared with All Banks, December 31, 1931States classifiedaccording to lawregarding branchbanking(l)State-wide branchbanking permittedBranches restrictedas to locationEstablishment ofbranches prohibitedNo provision in StatelawTotalEatio of1 branch1 systemsTotalto totalbankingnumberofficesof(banks andbanksbranches)(per cent)All active banksBranch systemsTotalNumber bankingofofficesbanks (banks andbranches)NumberofbanksRatio ofbankingoffices inbranchsystems tototal banking offices(per cent)1S41.420It 5872,82311.650.3 752,5307.6119,6666.226.217598,7908,832 2.7121.181lilgg.1.2677If,Oil19.16922,5033*517.8(1) See Table I of the Appendix for figures by States in each class*Table 8 - Loans and Investments of Branch Systems Compared withLoans and Investments of All Banks, December 31. 1931Loans andinvestments ofall activebanks(000 omitted)States classified according to lawregarding branch banking( )Loans andinvestments ofbanks operateing branches(000 omitted)State-wide branch banking permittedBranches restricted as to locationEstablishment of branches prohibitedNo provision in State law 3.502,88614,424,89 Uo8,37i610 5.293.8212U t 812*56U8,866,1875 9 75266 # 258.1 18,336,761 39,567,32446.3TotalPer centof total inbranch systemsk.e(2) See Table II of the Appendix for figures by States in each class.The distribution of branch systems and branches by geographicdivisions is shown in Charts 5 and 6 and Tables 9 and 10 # Branches areDigitized for FRASERhttp://fraser.stlouisfed.org/Federal Reserve Bank of St. Louis
- Inmost numerous in the Middle Atlantic States, North Central States, andPacific Coast States* Most of the branches in the Middle Atlantic Statesare in New York, and most of those in the North Central States are inMichigan. In the Pacific Coast States they are nearly all in California.'1'In fact 56 per cent of the branches in the country are located in thesethree States, New York, Michigan, and California, as Table 11 shows. Inboth New York and Michigan branches are confined to the city of the headoffice.The geographic distribution of branches located outside the cityof the head office is shown in Chart 7« According to this map there aretwenty-seven States in which branches are located outside the city of thehead office, but it should be noted that in only seventeen is the furtherestablishment of such branches permitted The twenty-seven States in whichbranches operate outside the head office city are as follows, those initalics being States where further extension of outside branches is pro*hibited oithor by law.or by judicial or administrative chusettsMississippiNew HampshireNew JerseyNew MexicoNorth CarolinaOhioPennsylvaniaRhode IslandSouth n(1) There are five branches in Washington. The Bank of California N* A.has two branches in Washington in addition to these and one in Oregon,but these are counted in the California figures.Digitized for FRASERhttp://fraser.stlouisfed.org/Federal Reserve Bank of St. Louis
Digitized for FRASERhttp://fraser.stlouisfed.org/Federal Reserve Bank of St. Louis- 15 -CHART 5NUMBERDISTRIBUTION OF BRANCH SYSTEMSBY GEOGRAPHIC DIVISIONS-DEC 31, DLE NORTH SOUTHERN SOUTHSOUTH WESTERN ROCKY PACIFICENGLAND ATLANTIC CENTRAL MOUNTAIN EASTERN WESTERN GRAIN MOUNTAINNumber of State and national banks with branches arrangedaccording to the geographic divisions in whioh they aresituated
- 16 -CHART 6NUMBERDISTRIBUTION OF BRANCHESBY GEOGRAPHIC DIVISIONS - DEC. 31,1931NUMBER1200120010001000Digitized for FRASERhttp://fraser.stlouisfed.org/Federal Reserve Bank of St. Louis800600t*00200o i—HI— — — —n— — —i oNEWHUDDLENORTH SOUTHERN SOUTHSOUTH WESTERN ROCKYPACIFICENGLAND ATLANTIC CENTRAL MOUNTAIN EASTERN WESTERN GRAIN MOUNTAINFumber of branches of State and national banks arranged according to the geographic divisions in which they are situated
- 1? -BRANCHES OF NATIONAL AND STATE BANKS OUTSIDE THE CITY OF THE HEAD OFFICEDECEMBER 31. 1931u)— wlw *\1/"iv 7"—--LT s—--LTV» \/fes\r Kf"".{Y h'-r-j l7*. .f T! Digitized for FRASERhttp://fraser.stlouisfed.org/Federal Reserve Bank of St. LouisNATIONAL BANKS369STATE-MEMBER BANKS---126NONMEMBER BANKSTOTAL.1156i.%\\f X** "*J.kA\' ' \ \ / \V * *V\ 1. . « xIn California there are numerous branches in the metropolitan areas centering around San Francisco and Los Angeles,but technically outside their city limits. On the map thedots extend much beyond the territory in which the branchesare actually located around these cities.II
is Montana now permits branches outside the head office city undercertain conditions, but none have been established there (June, 1932) It will be noted from the map that tlm-great majority of brohcheslocated outside the city of the head office are in California and in theEastern and Southern States It would not be practicable to make a similarmap showing the distribution of branches inside the city of the head office,because these benches are so highly concentrated in a few large cities*Table 9 - Branch Systems by Geographic DivisionsGeographicdivision(l)Number of bankswith branchesNumber ofbranchesJune December June19*5119201920New EnglandMiddle AtlanticNorth CentralSouthern MountainSoutheasternSouthwesternWestern GrainRocky MountainPacific CoastUNITED STATES631269332803629 281December19?1236,08663U138232997528806Loans andinvestments(000 omitted)DecemberJune19311920597, 531,05 , 644922,96098,982152,98920U.15710,48015,624 l,56o,33S10*918,7892,367,3 w6,755338,0U2191,3 1187,78117,2158?9,U842 t-ft9,i6o 18,336,761 6,896,851'*' New England: Maine, New Hampshire, Vermont, Massachusetts, Rhode Island,Connecticut.Middle Atlantic: New York, New Jersey, Delaware, Pennsylvania, Maryland,District of Columbia.North Central: Michigan, Wisconsin, Illinois, Indiana, Ohio*Southern Mountain: West Virginia, Virginia, Kentucky, Tennessee.Southeastern: North Carolina, South Carolina, Georgia, Florida, Alabama,Mississippi.Southwestern: Louisiana, Texas, Arkansas, Oklahoma.Western Grain: Minnesota, North Dakota, South Dakota, Iowa, Nebraska,Missouri, Kansas.Rocky Mountain: Montana, Idaho, Wyoming, Colorado, New Mexico, Arizona,Utah, Nevada.Pacific Coast: Washington, Oregon, California.Digitized for FRASERhttp://fraser.stlouisfed.org/Federal Reserve Bank of St. Louis3.33
- 19 Table 10 - Branches Inside and Outside the City of Head Officeby Geographic Divisions, December 1, 19311Number of branches1Number ofOutside head ! OutsideIncountybanks withoffice cityTotalof headbranches ! head office bat in same cityofficecounty1GeographicdivisionNew EnglandMiddle AtlanticNorth CentralSouthern MountainSoutheasternSouthwesternWestern GrainEocky MountainPacific Coast138622010062i,oi4595744oS51851826lUNITED 56011!-SI4l0)m288061Iks3.33 Table 11 - Branch Banking in Three States, New York, Michigan, and CaliforniaDecember 31, I93INumber of branchesNumberLoans andof banksInOutsideStateinvestmentswithhead office head office Total(000 omitted)branchescitycity7 48New YorkMichiganCaliforniaTotal 3 StatesTotal all StatesPer cent of 3 Statesto all 1,8761,1583.33 61.246.9 8,053,264967,1222.279.871 11,300,259 18,336,76156.261.6Distribution of Branches by Size of TownOver 62 per cent of the branches in the United States are in towns ofover 100,000 population.On the other hand, only about 17 per cent of thebranches are in towns of 2,500 people or less. In other words, there are only578 branches in towns of 2,500 population and less. Chart 8 and Table 12 illusstrate the extent to which branches are concentrated in the large cities.About 39 per cent of the banks operating branches are in towns of over100,000 population, but these banks have over 90 per cent of the loans and investments of all banks operating branches. This is illustrated in Table 13.Digitized for FRASERhttp://fraser.stlouisfed.org/Federal Reserve Bank of St. Louis
- 20 -CHART DISTRIBUTION OF BRANCHESBY SIZE OF TOWN - DEC. 31, PSDigitized for FRASERhttp://fraser.stlouisfed.org/Federal Reserve Bank of St. LouisNUMBER2200Ui 5.00025,000 50,000 100,000TOTO1Q000 25,000 50,000 100.000ANDOVERNumber of branches of State and national banks arranged according to the size of town in which they are situated
- 21 -Table 12 - Branches by Size of Town, December 31, 1931In headOutside headoffice cityoffice cityPer centPer centNumber!Numberof totalof total 'Populationof townUnder 5002500 - 1,00001,000 - 2,50072,500 - 5.00075.000 - 10,000910,000 - 25,0002725,000 - 50,000 !6350,000 - 100,000 1 132100,000 and over 1.929.10.0 32.1761 100.0Total:21.22.96.11891732071341079146604- -1lOvaiNumberI0.314.917.911.611.158Per centof 3.35.81 .02,08062.4100.03.334100.019117?214Table 13 - Branch Systems by Size of Town of Head OfficeDecember 31 931PopulationNumberofoftownbanksUnder 500500-- 1,0001,000 - 2,5002,500 - 5.0005,000 - 10,00010,000 - 25.00025,000 - 50,00050,000 - 100,000100,000 and over2541526136566279265TotalJ 677Per centPer centLoans andofof! investmentstotaltotal(000 omitted)T?.i90.6100.0 18,336,761100.011.6 9.2The extent of the concentration of branches in cities is alsoindicated in Table lktwhich gives the number of branches in the thirteenlargest cities of the country, i.et, cities with a population of 500,000or more each. Two of these cities, Chicago and St. Louis, have no branches,yet the remaining eleven, in one of which, Milwaukee, further extension isDigitized for FRASERhttp://fraser.stlouisfed.org/Federal Reserve Bank of St. Louis
- 22 not allowed/ 1 ' have over ko per cent of all branches in the country*Table lU - Number of Branch Systems and Branches in the ShirteenLargest Cities of the United States/ 2 / December 311 !931CityNew York CityChicagoPhiladelphiaDetroitLos AngelesClevelandSt; LouisBaltimoreBostonPittsburghSan FranciscoMilwaukeeBuffaloLoans and Number of Number of1 NumberPopulation i of banks ; investments branches "branches i Total1930of bankswithoutside 000 omitted)6,930, 6 !3»376tl 3S1,950,9611,568,662 94578,21 957 5.076k l-20579-9102823 5181,93 64ol,4oo1
Branch Banking before the Civil War 29 . Early Branch Banking in New York and New England 29 First and Second Banks of the United States 32 . State Bank Branch Systems 38 Branches in the Southern States 44 . Branch Banking and the National Bank Act 47 . Free Banking 49 Prohibition of Branch Banking 52 . Provisions of the Act Prohibiting Branches 53
