The Washington times., 1929-11-07
BANKING TREND
FOR LARGER
UNITS SEEN

The rapid trend toward corcer-
tration Of American banking re-
sources in fewer and larger insti-
tutions is strikingly portrayed in
an analysis of the nations bank
ing progress in the last five years
just completed by Lawrence Stern
81 Coz, investment bankers, Of Chi
cago and New York.
The study revealed that in the
last five years the resources Of
American banks increased by $751;
522,062, 900, but in the same
period there was q decrease Of
3,416 in the number Of banks in
the country.
In the same period deposits In
creased by approximately $15,504,- :
$4,000, and capital, surplus and
undivided profits Of all institu-
tions showed q gain Of nearly
$2,220, $50, 900.
'"The wave Of mergers which has
been sweeping the country" said
the survey, 'haS brought together
the largest aggregation Of banking
capital an6 sources in the his
tory Of the nation. Since 1924
there have been more than 2,OOO
mergers and consultations In our
banking system, involving almost
one-fourth of the total resources
OF all banks in this country.
Group Banking Spreads
"Side by side with this trend to-
ward mergers and consultations
there has been an equally impor-
tant movement toward the estab-
iShmer1t Of chain or group bank
ing. According to the American
Bankers Association, there are now
273 separate chains of banks in the
United States. involving 1853 In
stitutions and $13,275, 100000 in
aggregate reSourceS-lnore than
18 per cent Of the nations bank
ing assets.
Owing. to the fact that branch
banking among national banks is
limited by present laws, actual
branch systems have been princi-
pally among State banks In States
which permit banking; but chains
or groups Of banks including ma
tional banks, under unified con-
troll, are increasing rapidly, and it
seems to be generally believed that
chain banking is q step toward the
ultimate adoption of branch bank
ing through a few large institu-
tions with many branches such
aS those in Great Britain.
There are no signs of any slack
ening in the merger and combina-
ton wave which continues to
, sweep ahead, especially in cities
with a population Of $50, 600 and
upward. Today large conSonda-
tion or group deals involving more
than $4,000, ,00O, 600 IN bank re,
sources are under way in the
cities Of New York, Detroit, Seattle,
Buffalo, Boston, Minneapolis, Mil.
waukec, 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 90. This showed that there
are 50 institutions in II cities, with
resources Of niece than 500, ,0O0.-
900 each. Total assets 1S9, ,O00,.
600. which is 80 per cent Of all
St-.te and national bank resources.
twenty-five Of these banking
houses are In New York city,
and their assets aggregate $12,-
1876, 100000, or one-Sixth Of the
total resources of ali American
banks. In Chicago there are
six of these great banks with
resources totaling $2,260, ,000, 900,
and in San Francisco, seven more
with assets aggregating $A,8O3,-
100000.
Big Gain in Resources
"These 50 huge banks in the
last five years, through mergers
and increased business, have
added $9,249, 100000 to their re-
sources, a gain Of Sc per cent.
Today deposits in these banks
comprise 80 per cent Of all State
and national bank deposits total
ing SIT 7,346, ,000, 900, an increase of
SIS per cent over 1924. The total
capital of these institutions is
$l,195, ,000, 900, more than double
that Of five years ago.
America now has four great
banking institutions with total
resources of more than $1,000
100000. Three of these are in
New York and the other one Is
in Chicago. These banks have
resources aggregating more than
$6,500,000 approximately double
that of 1904