Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-11-10
BANKING MERGERS
BECOME NUMEROUS
Trend of Modern Times
Shown in Greater Concen-
tration of Wealth.

CHICAGO, November 9.-The rapid
trend toward concentration of Ameri-
can banking resources In fewer and
larger institutions Is strikingly por-
trayed in an analysis of the Nations
banking progress in the past five years,
Just completed by Lawrence Stern e.
Co., investment bankers of Chicago and
New York.
The study revealed that in the last
five years the resources of American
banks increased by S15,522, 062 900, but
in the same period there was a de-
crease of 3,416 in the number of banks
in the country. In this same period
deposits increased by approximately
$15,504 $4,000, and capital. surplus
and undivided profits of all institu-
tions showed a gain of nearly $780,
$4,000.
1.-THE wave Of mergers which has
been sweeping the country" said the
survey, has brought together the
largest aggregations of banking capital
and resources in the history of the Ma
ton. Since 1924 there have been more
than 1000 mergers and consultations
IN our banking system involving almost
one fourth of the total resources Of all
banks in this country.
Chain or Group Banking.
"Side by side with this trend toward
mergers and consultations, there has
been an equally important movement
toward the establishment of chain or
group banking. According to the
American Banker Association there
are now 273 separate chains of banks in
the United States, involving 1853 in
stitutions and $l3.275 900 900 in aggre-
gate reSourceS-more than 10 per cent
of the Nations banking assets. Owing
to the fact that branch banking among
national banks is limited by present
Laws, actual branch systems have been
principally among State banks in States
VIII III permit branch banking; but
chains or groups of banks, including ma
tional banks, under unified control, are
increasing rapidly, and 1t seems to be
generally believed that chain banking
Is step toward the ultimate adoption
OF branch banking through few large
institutions with many brancheS-such
as those in Great Britain.
There are no signs of any slacken-
ing in the merger and combination
wave which continues to sweep ahead,
especially in cities with a population of
100000 and upward. Today large con-
solidation or group deals involving more
are under way in the cities of New
York, Detroit, Seattle, Buffalo. Boston,
Minneapolis, Milwaukee, st. Paul,
Louisville, San Francisco, Los Angeles,
Nashville and other large centers.
THE movement toward larger banks
is further indicated by an analysis OF
bank statements as Of June 30. This
showed that there are SO institutions In
II cities with resources of more than
Sl00, 900 900 each. Total assets of these
great banks aggregate $23,l89, 600, 600
which is 80 per cent Of all State and
national bank resources. Twenty-Five
Of these banking houses are in New
York City, and their assets aggregate
$l2, 100000, or one-Sixth of the
total resources of all American banks
In Chicago there are six of these
great banks, with resources totaling
$2,260, 0O0,0 900, and In San Francisco
seven more, with assets aggregatine
$1,803,000, 600.
Four Great Institutions.
''These 50 huge banks In the past five
years, through mergers and increased
business, have added $0,249, 00O, 900 to
their resources, a gain Of 66 per cent
Today deposits in these banks comprise
80 per cent of all State and national
bank deposits, totaling $17,s46, 900 900
an increase of SIS per cent over 1924
The total capital OF these institutions
is $1,195 900, 900, more than double that
of five years ago.
America now has four great bank
ing institutions with total resources oil
more than $1,000, 100000. Three OF
these are in New York and the othel
one is in Chicago. These banks have
resources agsregating more thar
$500, 100000, approximately double
that of 1924.
while the tendency toward fewer
and larger banks has been under way
for several years, it has been during the
past three years that the merger move
ment has been most pronounced. Ir
this period New York City led the coun-
try with more than so institutions in
volved in mergers, and in Philadelphia
during the last six months There have
+! been mergers involving "a banks anC
trust companies with resources of $780,
100000. Chicago has also had five
major mergers involving nearly two anc
a half billion dollars in banking assets
Other cities reporting important merg'
ers were Boston. st. Louis, Los Angeles
San Francisco, Detroit and Buffalo.
ION the Pacific Coast, where chair
banking has been permitted for some
| time, consultations have been taking
| place rapidly in recent years, and TO-
day the Bank of Italy is the sixth
| largest in this country, with resources
of S843, 10000 The Bank of Americ;
of California has also consolidated sew
eral hundred small banks into a hug
association with resources of 1854,
| J00,0 0G.
Growth Of Chains.
! Sweeping eastward the chain bank
| ing movement has gained very sub
| stantial foothold in Minnesota, Wiscon
sin, Nebraska, Montana, Iowa, Wyoming
North Dakota, South Dakota and Mich
! igan. In these States three large group
are being organized involving 1873 bank
ing institutions with resources aggre
eating more than billion dollars. Il
Z New York State, where chain bankin
resources lead with total Of $4.206,
100 900, a corporation has been organ
lied to acquire control of l6 institution
located in various cities of the STATE
with resources aggregating $525, 900 ,00t
Another large banking corporation
! heing organized in Louisville XIV fC