compcurr_1938

SEVENTY-SIXTH ANNUAL REPORT

OF THE

Comptroller of the Currency

COVERING THE YEAR ENDED

OCTOBER 31, 1938

U N I T E D S T A T E S

G O V E R N M E N T P R I N T I N G O F F I C E

W A S H I N G T O N : 1 9 3 9

F o r s a l e b y t h e S u p e r i n t e n d e n t of D o c u m e n t s , W a s h i n g t o n , D . C . - - - - - - - - - - - P r i c e $ 1 . 5 0 ( c l o t h )

Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

TBEASUET DEPARTMENT

Document No. 3098

Comptroller of the Currency


CONTENTS

Introduction: PageSubmission of the report ~ 1National bank charters issued. 1National bank failures 1Receivership liquidation. 1Active national banks 1Trust activities 2National bank notes outstanding. 2Retirement system for national bank examiners, etc 2Suggestions for legislation 3

National banks in the trust field:Statement relative to 3Fiduciary activities of, during year ended June 30, 1938, segregated

according to capital 6Fiduciary activities of, during year ended June 30, 1938, segregated

according to population of places in which banks were located 8Fiduciary activities of, by Federal Reserve districts, June 30, 1938,._ 12Classification of investments in living and court trust accounts under

administration by the active national bank trust departments, onJune 30, 1938, segregated according to capital of banks and popula-tion of places in which banks were located 13

Classification of investments in living and court trust accounts underadministration by the active national bank branches with trustdepartments, on June 30,1938, segregated according to populationof places in which branches were located 14

Fiduciary activities of national bank branches with trust departmentsduring year ended June 30, 1938, segregated according to populationof places in which branches were located 15

National bank failures:Statement relative to 18Annual liquidation costs incident to. 1933 to 1938 19Reconstruction Finance Corporation and lending bank dividend loan

data to October 31, 1938 - 19Real estate auction sales incident to, 1935 to 1938 -.__._ 20Number and deposits of, year ended October 31, 1912 to 1938 20Banks placed in receivership, year ended October 31, 1938 22Receiverships, 1865-1938 23Number and deposits of, grouped according to percentage of dividends

paid, 1865-1938 26Active receiverships as of October 31, 1938 27Receiverships terminated, year ended October 31, 1938 28Receiverships terminated, 1865-1938 29Total liquidation operations, year ended October 31, 1938 32Summary showing progress and results of liquidation of all national

banks placed in charge of receivers from 1865 to October 31, 1938. _ 33Capital, date of appointment of receiver, and percent of dividends

paid by insolvent national banks, etc., the affairs of which wereclosed or restored to solvency during year ended October 31, 1938. 36

Unlicensed national banks:Summary relative to administration of banks which were unlicensed

March 16, 1933 _.. 48Organization and liquidation of national banks, year ended October 31,

1938, and since establishment of system 52III


IV CONTENTS

Branches of national banks: PageStatement relative to 54Number and kind of branches on February 25, 1927, and number and

manner of acquisition of additional branches, by years to close ofOctober 31, 1938 55

Number and kind of branches authorized and closed during year endedOctober 31, 1938 55

Number and manner of acquisition of domestic branches during yearended October 31, 1938, by States 56

Number and class of domestic branches closed during year endedOctober 31, 1938, by States 57

National bank circulation:Statement relative to 57Statement of capital stock of national banks, national bank notes,

and Federal Reserve bank notes (old series), outstanding, etc., July1, 1938 58

Redemption of national and Federal Reserve bank circulation, year endedJune 30, 1938 - 59

Condition of national banks at date of each call during year ended October31, 1938 59

Principal items of assets and liabilities of national banks, Sept. 28, 1938,by States 62

National bank liabilities on account of bills payable and rediscounts atdate of each call during year ended October 31, 1938 64

Loans and discounts of national banks:Classification of, June 30, 1936, 1937, and 1938 65Classification of, by Reserve cities and States, June 30, 1938 66Comparative statement of, as of June 30, 1936, 1937, and 1938, in

central Reserve and other Reserve cities, all Reserve cities andelsewhere. -, 70

Comparative changes in demand and time deposits, loans and discounts,United States Government and other bonds and securities owned, and theamount of reserve of national banks with Federal Reserve banks sinceJune 30, 1934 70

United States Government securities and securities guaranteed by UnitedStates as to interest and principal, held by national banks:

Classification of, by Reserve cities and States, June 30, 1938 71Investments of national banks:

Comparison of, June 30, 1936, 1937, and 1938 76United States Government, domestic and foreign bonds, securities, etc.,

held by national banks:Classification of, by Reserve cities and States, June 30, 1938 77

Earnings and dividends of national banks:By Reserve cities and States, year ended June 30, 1938 82By Federal Reserve districts, year ended June 30, 1938 94Years ended June 30, 1934 to 1938 97Years ended December 31, 1917 to 1937 100By size of banks according to deposits, year ended December 31, 1937_ 108Ratios of, per $100 of deposits, loans, investments, etc., year ended

December 31, 1937 112National bank investments in United States Government and other bonds

and securities, etc., loans and discounts, and losses charged off on accountof bonds and securities owned and loans and discounts, years endedDecember 31, 1918 to 1937 113

National bank investments in United States Government and other bondsand securities, etc., loans and discounts, and losses charged off on accountof bonds and securities owned and loans and discounts, years endedJune 30, 1918 to 1938 , _. 114

Number of national banks, capital, surplus, capital funds, net addition toprofits, dividends and ratios, years ended December 31, 1917 to 1937..__ 115

Number of national banks, capital, surplus, capital funds, net addition toprofits, dividends and ratios, years ended June 30, 1908 to 1938 116

National banks classified according to capital stock, December 31, 1937:Number, loans and discounts, investments, cash and exchange, total

assets, capital, surplus, profits and reserves for contingencies, andtotal deposits of 117


CONTENTS V

Federal Reserve banks: PawAssets and liabilities of the 12 Federal Reserve banks combined, as

of the last weekly statement date in October 1936-38 117Principal assets and liabilities of the 12 Federal Reserve banks com-

bined, on the last weekly statement date in each month, fromJanuary 1936 to October 1938 118

New York Clearing House:Statement relative to transactions of, year ended September 30, 1938_ 118

Clearing house associations in the 12 Federal Reserve bank cities andelsewhere:

Statement relative to transactions of, year ended September 30, 1938_ 119All active banks:

Summary of reports of condition of, by classes of banks, December 31,1937 __.._ 120

Summary of reports of condition of, by classes of banks, June 30, 1938_ 121Assets and liabilities of, by States, June 30, 1938 124 tAssets and liabilities of, June 30, 1934 to 1938 135Principal items of assets and liabilities of, in the continental United

States, as compared with similar data for member banks of theFederal Reserve System, June 30, 1938 136

Per capita demand and time and savings deposits, by States, June 30,1938 136

Savings deposits and depositors, according to classes of banks, byStates, June 30, 1938 . 138

National banks, assets and liabilities of, June 30, 1934 to 1938.___ 142Banks other than national:

Statement relative to - __ 143List of officials of State banking departments and number of each class

of banks under their supervision in June 1938.. , _., 144Assets and liabilities of, June 30, 1934 to 1938 146State (commercial), assets and liabilities of, June 30, 1934 to 1938____ 147Mutual savings:

Assets and liabilities of, June 30, 1934 to 1938 ___ 148Number of banks, number of savings depositors, amount of sav-

ings deposits, and average amount due each depositor, by States,June. 30, 1937 and 1938 . 149

Number of banks, number of savings depositors, amount of sav-ings deposits, and average amount due each depositor, June 30,1914 to 1938 150

Private:Assets and liabilities of, June 30, 1934 to 1938 151Statement relative to 151

Banks in the District of Columbia:Assets and liabilities of, by classes, June 30, 1938 152Assets and liabilities of all banks in, at date of each call during year

ended October 31, 1938 155Assets and liabilities of all banks in, June 30, 1934 to 1938 _ 156Assets and liabilities of national banks in, June 30, 1934 to 1938 157Assets and liabilities of loan and trust companies in, June 30, 1934 to

1938 ________ 158Assets and liabilities of savings and State banks in, June 30, 1934 to

1938___.. .. 159Reserves of nonmember banks:

Statement relative to ._.___, 160As of each call date from October 25, 1933 to September 28, 1938_ _ 161

Earnings and dividends of, other than national, 6-month periods endedDecember 31, 1937 and June 30, 1938, and comparison of, in yearsended June 30, 1937 and 1938 _ 163

Building and loan associations in the District of Columbia:Statement relative to 164Number of, loans, installments on shares, and total assets, June 30,

1914 to 1938 . 165District of Columbia credit unions, list of, October 31, 1938 165Export-Import bank in:

Assets and liabilities of, at date of each call in year ended October31, 1938 166


VI CONTENTS

PawSavings, building and loan associations in the United States:

Number, membership, and total assets, by States, at close of 1937 167Mortgage loan investments of, by States, at close of 1937 169Number, membership, total assets, and mortgage loans of, on or about

December 31, 1914 to 1937 170Failures of building and loan associations, 1920 to 1937 170

Money in the United States:Stock of, years ended June 30, 1914 to 1938 171Imports and exports of merchandise, gold and silver, calendar years

1914 to 1937, and from January 1 to September 30, 1938 171Governmental corporations and credit agencies of the United States, con-

solidated statement of assets and liabilities of, September 30, 1938 173Reconstruction Finance Corporation:

Statement of condition of, June 30, 1938 174Loans made by, to aid in the reorganization or liquidation of closed

banks and trust companies from February 2, 1932, to June 30, 1938,by States 176

Loans on and purchases of preferred stock, and purchases of capital notesor debentures, of banks and trust companies, disbursed by, fromMarch 9, 1933 to June 30, 1938, by States 178

Farm Credit Administration:Consolidated statement of condition of, June 30, 1938 180Banks for cooperatives, consolidated statement of condition of, June

30, 1938 181Federal land banks, consolidated statement of condition of, June 30,

1938 182Federal Farm Mortgage Corporation, statement of condition of, June

30, 1938 183Federal intermediate credit banks, consolidated statement of condition

of, June 30, 1938 i___- 183Joint stock land banks, statement relative to, as of June 30, 1938 184

Federal Home Loan Bank System:Consolidated statement of assets and liabilities of, September 30, 1938_ 185Home Owners' Loan Corporation, summary of operations of, from date

of organization to close of business September 30, 1938 187Federal Deposit Insurance Corporation:

Assets and liabilities of, June 30, 1938 188Assets and liabilities of operating insured commercial banks, by classes,

June 30, 1938 190Pacific National Agricultural Credit Corporation, statement of assets and

liabilities as of December 31, 1937, and March 7, 1938 191United States Postal Savings System:

Statistics relative to activities of, years ended June 30,1937, and 1938. 191School savings banking:

Statistics relative to, in each State, in school years 1936-37 and1937-38, and summary each school year since 1919-20 196

Expenses of the Currency Bureau:Summary of, in the fiscal year ended June 30, 1938 197

APPENDIXTABLES

No. 1. Comptrollers and Deputy Comptrollers of the Currency since1863 201

No. 2. Names and compensation of officers and clerks in the Office of theComptroller of the Currency, October 31, 1938 201

No. 3. Number of national banks organized since February 25, 1863,number passed out of the system, and number in existence Octo-ber 31, 1938 203

No* 4. National banks reported in liquidation from November 1, 1937, toOctober 31, 1938, the names where known, of succeeding banksin cases of succession, with date of liquidation and capital 203


CONTENTS VII

PageNo. 5. Capital stock, surplus, undivided profits, and total assets of banks

consolidated under act of November 7, 1918, as amended Febru-ary 25, 1927, and June 16, 1933, in the year ended October 31,1938, as shown by their last reports prior to consolidation 205

No. 6. National banks, consolidated in year ended October 31, 1938,under act of November 7, 1918, as amended June 16, 1933,together with their capital, surplus, undivided profits, and totalassets, as of date of consolidation 206

No. 7. State banks and national banks consolidated in year ended October31, 1938, under act of February 25, 1927, as amended June 16,1933, their consolidated capital, surplus, undivided profits, andtotal assets, as of date of consolidation 207

No. 8. Number and capital of State banks converted into national bank-ing associations in each State and Territory from 1863 to Octo-ber 31, 1938 208

No. 9. Conversions of State banks and primary organizations as nationalbanks from March 14, 1900, to October 31, 1938 208

No. 10. Number of national banks increasing their capital, together withthe amount of increase monthly for years ended October 31,since 1933 _.__ 209

No, 11. Number and authorized capital of national banks chartered andthe number and capital stock of banks closed in each yearended October 31, since 1913, with the yearly increase or de-crease . 210

No. 12. Total number of national banks organized, consolidated under actof November 7, 1918, as amended June 16, 1933, insolvent, involuntary liquidation, and in existence on October 31, 1938 210

No. 13. Changes of corporate title of national banks, year ended October31, 1938 211

No. 14. Changes of corporate title incident to consolidations of nationalbanks and of State banks with national banks, year ended Octo-ber 31, 1938 - . - 212

No. 15. National banks chartered during year ended October 31, 1938 212No. 16. National banks for which increase of capital has been authorized,

under act of March 9, 1933, as amended, by the issuance of pre-ferred stock which was purchased by the Reconstruction FinanceCorporation unless otherwise noted, together with the amount ofincrease, and the rate of dividends, etc., during year endedOctober 31, 1938 212

No. 17. National banks chartered which are conversions of State banksduring year ended October 31, 1938 213

No. 18. National banks by States and geographical divisions organized,failed, and reported in voluntary liquidation during year endedOctober 31, 1938 214

No. 19. Number and classification of national banks chartered monthlyduring year ended October 31, 1938 215

No. 20. Principal items of assets and liabilities of national banks, classi-fied according to capital stock, December 31, 1937 215

No. 21. National bank notes redeemed and outstanding, by denominationsand amounts, year ended October 31, 1934 to 1938 ^ 224

No. 22. National bank notes received monthly by Comptroller of the Cur-rency from Currency Redemption Division for redemption on re-tirement account, during year ended October 31, 1938__~- 225

No. 23. Vault account of currency received and destroyed during yearended October 31, 1938 . 225

No. 24. Amount of currency received for redemption, by months, fromJuly 1, 1937, to June 30, 1938, and counted into the cash ofthe Currency Redemption Division 225

No. 25. Amount of currency received by the Currency Redemption Divisionfor redemption in year ended June 30, 1938, from principalcities _* 225

No. 26. Cost of redemption of national bank notes during year endedJune 30, 1938 226

No. 27. Cost of redemption of Federal Reserve notes during year endedJune 30, 1938 . 226


VIII CONTENTS

PageNo. 28. Taxes assessed on national bank circulation, years ended June 30,

1864-1936; cost of redemption, 1874-1938; and assessment forcost of plates, etc., 1883-1935 227

No. 29. Federal Reserve notes outstanding according to weekly statements(amount issued by Federal Reserve agents to Federal Reservebanks less notes redeemed), and collateral security therefor,November 3, 1937, to October 26, 1938_ _ 228

No. 30. Federal Reserve notes, segregated by series, printed, shipped,and canceled, issued to banks, retired, and destroyed sinceorganization of the banks, with balance in vaults and amountoutstanding October 31, 1938 229

No. 31. Aggregate amount of Federal Reserve bank notes, old series,printed, issued, canceled, and redeemed by denominations,since inauguration of Federal Reserve System, and amount out-standing October 31, 1938 231

No. 31A. Aggregate amount of Federal Reserve bank notes, series 1929,printed, shipped, and on hand; issued, retired, and outstanding;received for destruction by denominations, during the periodMarch 10, 1933 (date of first shipment), to October 31, 1938,under terms of sec. 18. Federal Reserve Act, as amended March9, 1933 1 232

No. 32. National banks in charge of receivers during year ended October31, 1938, dates of organization and appointment of receivers,capital at date of organization and at date of failure, dividendspaid while solvent, lawful money deposited with Treasurer ofUnited States to redeem circulation to October 31, 1938, circu-lation outstanding, borrowed money, and total deposits atdate of failure 233

No. 32A. District of Columbia State chartered banks and banks incor-porated under laws of District of Columbia, under super-vision of Comptroller of the Currency, in charge of receiversduring year ended October 31, 1938, dates of organizationand appointment of receivers, capital at date of organizationand at date of failure, dividends paid while solvent, borrowedmoney, and total deposits at date of failure 257

No. 33. National banks in charge of receivers during year ended October31, 1938, dates of appointment of receivers and final closing,with nominal amounts of total assets at date of failure andadditional assets acquired subsequent thereto, capital stockand stock assessments, amounts collected from all sources, in-cluding offsets allowed and earnings, together with dispositionof such collections and various other data indicating the prog-ress or results of liquidation to October 31, 1938 258

No. 33A. District of Columbia State chartered banks and banks incorpor-ated under laws of District of Columbia, under supervision ofComptroller of the Currency, in charge of receivers during yearended October 31, 1938; dates of appointment of receivers andfinal closing, with nominal amounts of total assets at date offailure and additional assets acquired subsequent thereto,capital stock and stock assessments, amounts collectedfrom all sources, including offsets allowed and earnings,together with disposition of such collections, and variousother data indicating the progress or results of liquidation toOctober 31, 1938 370

No. 34. National banks restored to solvency after having been placed incharge of receivers, from date of first national bank failurein 1865 to October 31, 1938 374

No. 35. National banks restored to solvency which subsequently becameinsolvent, from date of first national bank failure in 1865 toOctober 31, 1938 . - . 376

No. 36. Dividends paid to creditors of insolvent national banks undersupervision of Comptroller of the Currency, including distri-butions by conservators as reported by receivers, during yearended September 30, 1938 376


CONTENTS IX

PageNo. 37. National banks placed in charge of receivers, the affairs of which

have been closed, by years, from April 14, 1865, to October 31,1938, with amounts of total nominal assets, capital stock, cir-culation outstanding, and total deposits at date of failure, to-gether with various data indicating the results of liquidation,for those receiverships closed through liquidation 393

No 38. National banks placed in charge of receivers, the affairs of whichhave been closed, by States, from April 14, 1865, to October 31,1938, with amounts of total nominal assets, capital stock, cir-culation outstanding, and total deposits at date of failure,together with various data indicating the results of liquidation,for those receiverships closed through liquidation 398

No. 39. Dates of reports of condition of national banks, 1914 to 1938 402No. 40. Assets and liabilities of foreign branches of National City Bank

and Chase National Bank, of New York, N. Y., First NationalBank of Boston, Mass., and Bank of America National Trust &Savings Association, San Francisco, Calif., on June 30, 1938 403

No. 41. Assets and liabilities of national banks in central Reserve andother Reserve cities, and country banks, June 30, 1938 409

No. 42. Assets and liabilities of national banks in the central Reserve citiesof NewT York and Chicago, other Reserve cities and countrybanks, September 28, 1938 410

No. 43. Cash, balances with other banks, and cash items in process of col-lection reported by national banks, June 30, 1938 412

No. 44. Demand deposits of national banks, June 30, 1938 _ 416No. 45. Time deposits of national banks, June 30, 1938 420No. 46. Bills payable and rediscounts of national banks, June 30, 1938 424No. 47. Reserve computation of national banks, June 30, 1938 426No. 48. Assets and liabilities of national banks, March 1934 to September

1938 430No. 49. Assets and liabilities of national banks, according to reserve cities

and States, at date of each call during year ended October 31,1938 437

No. 50. Assets and liabilities of national banks in each Federal Reservedistrict, June 30, 1938 , 552

No, 51. Earnings and dividends of national banks, six months endedDecember 31, 1937 554

No. 52. Earnings and dividends of national banks, \>y Federal Reservedistricts, six months ended December 31, 1937 _-- 566

No. 53. Earnings and dividends of national banks, six months endedJune 30, 1938 569

No. 54. Earnings and dividends of national banks, by Federal Reservedistricts, six months ended June 30, 1938 581

No. 55. Earnings and dividends of national banks, by size of banks, yearended December 31, 1937, by geographical sections ___ 584

No. 56. Earnings and dividends of nonmember national banks, by size ofbanks, year ended December 31, 1937 602

No. 57. Earnings and dividends of national banks, by size of banks, yearended December 31, 1937, summary covering the entire country- 604

No. 58. Earnings and dividends of national banks, by size of banks, yearended December 31, 1937, by Federal Reserve districts 608

No. 59. Assets and liabilities of savings and State banks in District ofColumbia at date of each call during vear ended October 31,1938 1 - 644

No. 60. Assets and liabilities of loan and trust companies in District ofColumbia at date of each call during year ended October 31,1938 - - 645

No. 61. Principal items of assets and liabilities of savings and State banksin District of Columbia, June 30, 1914 to 1938 ._ 646

No. 62. Principal items of assets and liabilities of loan and trust companiesin District of Columbia, June 30, 1914 to 1938 .___ 646

No, 63. Individual statements of assets and liabilities of the 26 buildingand loan associations in District of Columbia, June 30, 1938 647

No. 64. Summary of assets and liabilities December 31, 1937, and receiptsand disbursements in six months ended December 31, 1937, ofthe 27 building and loan associations in District of Columbia.. 649


X CONTENTS

PageNo. 65. Summary of assets and liabilities June 30, 1938, and receipts and

disbursements in six months ended June 30, 1938, of the 26building and loan associations in District of Columbia 650

No. 66. Individual statements of assets and liabilities of the 24 District ofColumbia credit unions, June 30, 1938 651

No. 67. Summary of assets and liabilities December 31, 1937, and receiptsand disbursements in six months ended December 31, 1937, ofthe 24 District of Columbia credit unions 652

No. 68. Summary of assets and liabilities June 30, 1938, and receipts anddisbursements in six months ended June 30, 1938, of the 24District of Columbia credit unions 652

No. 69. Assets and liabilities of active State (commercial) banks, Decem-ber 31, 1937 653

No. 70. Assets and liabilities of active mutual savings banks, December31, 1937 660

No. 71. Assets and liabilities of active private banks, December 31, 1937_ 663No. 72. Assets and liabilities of all active banks other than national,

December 31, 1937 665No. 73. Assets and liabilities of active national banks, December 31, 1937- 672No. 74. Assets and liabilities of all active banks in the United States and

possessions, December 31, 1937 678No. 75. Assets and liabilities of active State (commercial) banks, June 30,

1938 684No. 76. Assets and liabilities of active mutual savings banks, June 30,

1938 694No. 77. Assets and liabilities of active private banks, June 30, 1938 699No. 78. Assets and liabilities of all active banks other than national, June

30, 1938 703No. 79. Assets and liabilities of active national banks, June 30, 1938 714No. 80. Assets and liabilities of all active banks other than national,

June 30, 1914 to 1938 722No. 81. Assets and liabilities of all active national banks, June 30, 1914

to 1938 723No. 82. Assets and liabilities of all active banks, June 30, 1914 to 1938__ 724No. 83. Statement of transactions of New York Clearing House, year

ended September 30, 1854-1938 725No. 84. Exchanges, balances, percentages of balances to exchanges, and

percentages of funds used in settlement of balances by the NewYork Clearing House, each year, 1914 to 1938 725

No. 85. Exchanges of clearing houses of the United States, year endedSeptember 30, 1914 to 1938 726

No. 86. Comparative statement of exchanges of clearing houses of theUnited States, year ended September 30, 1938 and 1937 726

No. 87. Comparative statement of transactions of clearing house associa-tions in the 12 Federal Reserve bank cities and in other citieswith transactions of $1,000,000,000 and over, year ended Sep-tember 30, 1938 and 1937 730

No. 88. Bank suspensions, by States, six months ended December 31,1937 731

No. 89. Bank suspensions, by States, six months ended June 30, 1938 732No. 90. Bank suspensions, by States, year ended June 30, 1938 733No. 91. Bank suspensions, year ended June 30, 1864 to 1938 734No. 92. Bank suspensions since inauguration of Federal Deposit Insur-

ance (January 1, 1934, to June 30, 1938) 736No. 93. Bank suspensions, year ended December 31, 1921 to 1937 737No. 94. Bank suspensions since inauguration of Federal Deposit Insur-

ance (year ended December 31, 1934 to 1937) 738Table "P". Statements of assets and liabilities of the individual national

banks at close of business December 31, 1938, arranged alpha-betically by States, Territories, and towns. (Omitted fromthis report and published as a separate table.)


REPORT

OF THE

COMPTROLLER OF THE CURRENCY

TREASURY DEPARTMENT,

OFFICE OF THE COMPTROLLER OF THE CURRENCY,

Washington, D. C, January 8, 1939.SIR: I have the honor to submit the following report as required

by the provisions of section 333 of the United States Revised Stat-utes, covering the activities of the Bureau of the Comptroller of theCurrency, for the year ended October 31, 1938. This is the seventy-sixth annual report made to Congress since the organization of theBureau.

NATIONAL BANK CHARTERS ISSUEDOf the eight charters issued during the annual report year, seven

were the result of conversions of State banks, and one national bankwas organized for the purpose of acquiring the business of a liqui-dating national bank. There were no primary charters issued fornational banks during the year ended October 31, 1938.

NATIONAL BANK FAILURES

There was one actual failure of a national bank with deposits of$36,118.00 during the year ended October 31, 1938. Receivers were,however, appointed for two other national banks, one for the purposeof completing unfinished business and the other to reopen a receiver-ship, the affairs of which had been closed during the year endedOctober 31, 1933.

RECEIVERSHIP LIQUIDATION

During the year, 365 insolvent national banks, including 1 resultingfrom the reopening of a receivership, were completely liquidated andfinally closed. As of October 31, 1938, there remained 520 insolventnational banks still in process of liquidation,

ACTIVE NATIONAL BANKS

National banks were, in accordance with the provisions of section5211 of the Revised Statutes, called upon to submit four reports ofcondition during the current annual report year. The figures fordeposits, capital structure, and total assets on each of the four calldates are as follows:

DateNumberof banks Total deposits

Total capitalstructure Total assets

Dec. 31,1937 _Mar. 7,1938..June 30, 1938.Sept. 28,1938

5,2665, 2565,2485,245

14,00026,238,242,00026,815,894,00027,103,881,000

$3,244,198,0003,257,360,0003,273,819,0003,305, 575,000

$30,124,195,00029,823,500,00030,387,082,00030,718,522,000


2 REPORT OF THE COMPTROLLER OF THE CURRENCY

During the year ended October 31, 1938, preferred stock of anaggregate par value of $29,901,277 was retired by 941 national banks.Coincident with these retirements, the common capital was increased$15,788,252, and new or additional preferred stock in the amount of$1,455,600 was issued. During the year there was a net decrease inthe aggregate par value of the preferred stock of $597,590. Of thetotal preferred stock issued, under the Act of March 9, 1933, asamended, by 2,271 national banks aggregating $565,832,150, there hasbeen retired $297,340,407, or 52.6 percent. There has also been a netdecrease in the par value of the outstanding preferred stock aggregat-ing $7,601,840. As of October 31, 1938, there was outstanding in1,764 national banks preferred stock with an aggregate par value of$260,889,903, which includes $1,168,950 in 21 banks which were involuntary liquidation or receivership.

Consolidated figures taken from the earnings and dividends reportsof all national banks covering the year ended June 30, 1938, showgross operating earnings of $850,551,000 and operating expenses of$585,882,000, resulting in net earnings from operations of $264,669,000,which is a decrease of $4,677,000 from the amount reported as netearnings from operations in the year ended June 30, 1937. Recoverieson losses charged off and profits on securities sold amounted to$161,742,000. After deducting the losses charged off, which amountedto $217,988,000, from the total of net earnings from operations andrecoveries on losses and profits on securities sold, amounting to$426,411,000, there remains a net profit before dividends of $208,423,-000, which is $78,138,000 less than the amount reported for the yearended June 30, 1937. Dividends paid on preferred and commonstock amounted to $143,740,000, which is $9,735,000 less than the totaldividends paid during the previous year.

To meet what was thought to be a need for greater uniformity inexamining methods among the various supervisory agencies, thisoffice cooperated with the Board of Governors of the Federal ReserveSystem and the Directors of the Federal Deposit Insurance Corpora-tion in developing a revised procedure for classifying assets and valuinginvestments in reports of examinations. Since the revised method wasput into effect on September 15, 1938, it is, as yet, too soon to evaluatethe practical result.

TRUST ACTIVITIES

Of the 1,905 national banks authorized to exercise trust powers,1,543 were, on June 30, 1938, administering 135,655 individual trustswith assets aggregating $9,419,017,042. Seven hundred and eighty-seven national banks were administering 17,109 corporate trusts andwere acting as Trustee for note and bond issues amounting to $10,218,-406,672. The gross earnings from trust activities for the year endedJune 30, 1938, amounted to $33,447,000, which is a reduction of$332,000 from the amount reported for the previous year.

NATIONAL BANK NOTES OUTSTANDING

There were, as of July 1, 1938, $220,687,930 in national bank notesstill outstanding.

RETIREMENT SYSTEMAs of October 31, 1938, there were 775 active members of the retire-

ment system for national bank examiners, assistant examiners, andDigitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REPORT OF THE COMPTROLLER OF THE CURRENCY 3

clerks. Seven individuals have been retired since the establishmentof the system on June 1, 1936, and a total of $9,523.22 has been paidin retirement benefits to date. No death benefits were paid duringthe past year. The assets of the system as of October 31, 1938, are asfollows:

Treasurer's account - $102, 899. 77U. S. Government bonds. 1,242, 700.00Unamortized premiums paid 10, 447. 00Accounts receivable 7. 50

Total 1,356,054. 27

SUGGESTIONS FOR LEGISLATION

The Farm Credit Administration has jurisdiction over the Federallychartered credit unions. The Comptroller of the Currency has juris-diction over credit unions chartered under the Code of Law for theDistrict of Columbia. It is suggested that consideration be given tothe transfer of the jurisdiction of credit unions chartered under theCode of Law for the District of Columbia to the Farm Credit Ad-*ministration.

The Federal Home Loan Bank Board has jurisdiction over theFederally chartered savings and loan associations. The Comp-troller of the Currency has jurisdiction over building and loan asso-ciations chartered under the Code of Law for the District of Columbia.It is suggested that consideration be given to the transfer of thejurisdiction over building and loan associations chartered under theCode of Law for the District of Columbia to the Federal Home LoanBank Board.

It is suggested that consideration be given to the clarification ofsections 5199 and 5204 of the Revised Statutes, relating to the pay-ment of dividends on the shares of common stock of national banks,and to the possibility of amendment to permit declaration of divi-dends quarterly rather than semiannually.

In some localities national banks are leaving the national bankingsystem because they are required by the national banking laws tohave considerably greater capital in order to establish branchesthan are State banks competing with them in the same State. Itis suggested that consideration be given to placing national banks ona basis of competitive equality with State banks in the same State inthe matter of capital requirements for the establishment of branches.

NATIONAL BANKS IN THE TRUST FIELD

The extent of the development of fiduciary activities by nationalbanks was revealed by statistics compiled for the fiscal year endedJune 30, 1938, which reflected that 1,905 of these institutions had au-thority to exercise trust powers, with a combined capital of $1,293,-638,494, and banking assets of $25,986,953,015, representing 36.30percent of the number, 82.01 per cent of the capital, and 85.52 per-cent of the assets of all banks in the national banking system.

Trust departments had been established by 1,543 of these banksand 135,655 individual trusts were being administered with assetsaggregating $9,419,017,042, Seven hundred and eighty-seven ofthese banks were also administering 17,109 corporate trusts and were



acting as trustees for note and bond issues amounting to $10,218,-406,672. Compared with 1937 these figures represent a decrease of117 in the number of individual trusts being administered; a reduc-tion of $237,380,098 in the volume of individual trusts under admin-istration; an increase of 1,126 in the number of corporate trusts witha reduction of $351,625,993 in the volume of note and bond issuesoutstanding under which national banks had been named to act astrustees.

Segregation of the number of fiduciary accounts in national banksreveal that 68,905 or 45.11 percent were those created under privateor living trust agreements; 66,750 or 43,69 percent were trusts beingadministered under the jurisdiction of the courts and the remaining17,109 or 11.20 percent were trusteeships under corporate bond ornote-issue indentures. Private trust assets comprised $7,455,878,977,or 79.16 percent of the total assets under administration, while theremaining $1,963,138,065 or 20.84 percent belonged to court trusts.

An analysis of the $8,059,393,406 of invested trust funds belongingto private and court trusts under administration revealed that 48.62percent were in bonds; 32.15 percent in stocks; 7.08 percent in real-estate mortgages; 7.38 percent in real estate; and 4.77 percent con*sisted of miscellaneous assets.

The development of trust activities in national banks is furtheremphasized by comparing the record in 1938 with that of 1933 whichreflects an increase during the 5-year period of 35,299 or 35.17 per-cent in the number of individual trusts being administered; an in-crease of $3,107,359,289 or 49.23 percent in the volume of individualtrust assets under administration; an increase of 6,325 or 58.65 per-cent in the number of corporate trusts while the volume of bond andnote issues outstanding for which the banks were acting as trusteesshowed a reduction of $200,020,265 or 1.92 percent.

Gross earnings from fiduciary activities aggregated $33,447,000during the fiscal year ended June 30, 1938, as against $33,779,000 in1937 and $21,461,000 in 1933, representing a reduction of $332,000 or0,98 percent compared with 1937 and a gain of $11,986,000 or 55.85percent over 1933.

Three hundred and twenty-four national banks were acting astrustees under 1,297 insurance trust agreements involving $57,964,016in proceeds from insurance policies, while 704 national banks had beennamed to act as trustees under 16,071 insurance trust agreements notyet matured or operative supported by insurance policies with a facevalue aggregating $612,343,415.

Four hundred and two of the banks spent $268,775 during the yearfor trust advertising; 39 banks employed full-time trust solicitors, and65 banks utilized the services of part-time trust solicitors.

Two hundred and forty-four banks were acting as transfer agentsfor 2,512 accounts involving $3,116,700,736, and 367 banks were act-ing as registrars of stocks and bonds for 4,284 accounts involving$4,713,124,399.

An analysis of the new trust accounts placed on the books of thenational banks between June 30, 1937, and June 30, 1938, developedthat 235 banks were named as trustees for 811 bond and note issuesaggregating $542,626,834; 838 banks were named to act as individualtrustees under 5,704 agreements involving $215,578,375; 721 bankswere named to act under 2,640 executorships involving $203,047,344;


REPORT OF THE COMPTROLLER OF THE CURRENCY 5

549 banks were named as administrators under 1,429 appointmentsinvolving $42,039,255; 525 banks were named under 2,601 guardian-ships involving $10,205,515; 14 banks were named to act as assigneesin 46 instances involving $1,586,721; 32 banks were named to act in62 receiverships involving $1,772,334; 142 banks were named to actas committee of estates of lunatics in 294 cases involving $5,753,764while 393 banks were named to act 6,061 times in miscellaneous fidu-ciary capacities other than those enumerated above involving $456,-478,680.

Sixty-nine banks were named to act as registrars of stocks andbonds in 218 cases involving $158,865,044 while 67 banks were namedto act as transfer agents in 187 instances involving $68,369,096.

National-bank branches numbering 364 on June 30, 1938, wereactively engaged in administering 12,536 trusts, with individual trustassets aggregating $657,927,053, and were acting as trustees for out-standing note and bond issues amounting to $234,323,388.

The following tables show in detail the activities of national banksin the trust field; segregated: First, according to capital of the banks;second, according to the population of places in which the banks werelocated; third, according to Federal Reserve districts; and fourth,analysis of the type of investments held in trust; with a supplementaltable showing the extent to which national-bank branches were fur-nishing trust service to the communities in which they were located.


Fiduciary activities of national banks during year ended June 30, 19S8t segregated according to capital

Number of national banks with trust powers but not administering trusts.Number of national banks with trust powers administering trusts

Total number of national banks authorized to exercise fiduciarypowers

Total assets of banking departments of national banks authorized to exer-cise fiduciary powers

TRUST ASSETS

Investments _ _Deposits in savings banksDeposits in own bankDeposits in other banks .Other assets

Total

LIABILITIESPrivate trusts . - _ . _ . .Court trusts

Total

Total volumes of bond issues outstanding for which banks are acting astrustee

Number of national banks administering private trustsNumber of national banks administering court trustsNumber of national banks administering corporate t rusts .

Number of living trusts being administeredNumber of court trusts being administered - _ _ _ . .

Total number of individual trusts being administeredNumber of corporate trusts being administered

Total number of trusts being administered

Average volume of individual trust assets in each bankAverage volume of trust assets in each individual trustNumber of national banks administering insurance trustsNumber of insurance trusts being administeredAverage volume of insurance trust assets in each bank

Bankswith

capitalof $25,000

2414

38

$18, 790, 589

$330,9692,675

27,993

76

361,713

$247,488114,225

361,713

$111,0914

121

1427

411

42

$25,837$8,822

Bankswith capi-

tal over$25,000 to

$50,000

8462

146

$114,345, 535

$3,023,769106, 683350,143

19,49139,286

3,539,372

$490,9103,048,462

3, 539,372

$122,15133535

94271

3659

374

$57,087$9,697

13

$155,919

Banks withcapital over

$50,000 to$100,000

128254

382

$618,653,449

$34,640,660815,138

2,956,13489,756

883,058

39,384,746

$15,126,21424,258,532

39,384,746

$11, 584,86818522768

1,2672,584

3,851191

4,042

$155,058$10,227

66

$10,267

Banks withcapital over$100,000 to

$200,000

68474

542

$1,475,309,256

$205,040,3812,487,834

11,563, 554736,957

6,443,436

226,272,162

$122,947,980103, 324,182

226,272,162

$60,280,750387439202

5, 72711,570

17,297737

18,034

$477,367$13,082

3643

$25,504

Banks withcapital over$200,000 to

$500,000

42428

470

$2,511,671, 720

$567,777,3556,282, 780

26,065,6721,881,489

21,173, 512

623,180,808

$370,368,519252,812,289

623,180,808

$202,152,446382397249

11,80016, 659

28,4591,386

29,845

$1,456,030$21,897

95195

$88,123

Banks withcapital over

$500,000

16311

327

$21,248,382,466

$7,248, 580,27229,250,811

317, 606,54511,567,859

919,272, 754

8,526,278,241

$6,946, 697,8661,579,580,375

8, 526,278,241

$9,944,155,366296293262

50,00335,639

85,64214,785

100,427

$27,415,686$99,557

1861,050

$260,520

Total

3621,543

1,905

$25,986,953,015

$8,059,393,40638,945,921

358,570,04114,295,552

947,812,122

9,419,017,042

$7,455,878,9771,963,138,065

9,419,017,042

$10,218,406,6721,2871,421

787

68,90566,750

135,65517,109

152, 764

$6,104,353$69,434

3241,297

$178,900

aoo

o

3d


Average volume of insurance trust assets in each trustNumber of national banks holding insurance trust agreements not operativeNumber of insurance trust agreements not operative - . .Face value of policies held under above agreements .

i-4 Average number of insurance trust agreements not operative held by each3 bank . : :jt Average volume of insurance policies held by each bank under trust agree-co ments not operative __ _I Average volume of insurance policies per trust held under agreements notco operative _ , ..*? Average gross earnings per trust for fiscal year ended June 30,1938I Average gross earnings per trust department reporting trust earnings for| fiscal year ended June 30,1938 _ ._;:._ .:.ic N umber of banks reporting amounts spent annually for trust advertising.

Average amount spent annually by each reporting bank for trust adver-tising _ _ ,

Number of banks employing full-time trust solicitorsNumber of banks employing part-time trust solicitors

$110

$419

$51,973512

$366,444

2

$73, 289

$30,537$52

$3944

$16

$10,26735290

$1,796, 603

$51,332

$6,195

$1,24631

$71

$21,352153568

$17,029,045

4

$111,301

$29,981$65

$2,752106

$1342

22

$42,932246

2,197$72,121,407

9

$293,176

$32,827$89

$6,672112

$3561

12

$46,149OCRZOO

13,004$521,029,916

49

$1,966,151

$40,067$289

$94,140149

$1,4263623

$44,691r7(\A

16,071$612,343,415

23

$869,806

$38,102$217

$23,401402

$6693965

3HOO

o

pwo

O

g22o

l


Fiduciary activities of national banks during year ended June SO, 19S8, segregated according to population of places in which banks were located 00

Places withpopulation less

than 1,0001,000 to 2,499 2,500 to 4,999 5,000 to 9,999 10,000 to 24,999 25,000 to 49,999

Number of national banks with trust powers but not administering trustsNumber of national banks with trust powers administering trusts

73118

56201

92250 340

23205

Total number of national banks authorized to exercise fiduciary powers.Total assets of banking departments of national banks authorized to exercise

fiduciary powers

406

$1, 520, 724, 087

InvestmentsDeposits in savings banks..Deposits in own bankDeposits in other banksOther assets

TRUST ASSETS$2, 342, 097

28,750379,069

8,98312, 463

Total. 2,771,362

Private trusts..Court trusts. . .

$1,127,0541,644,308

Total.

Total volume of bond issues outstanding for which banks are acting as trustee-Number of national banks administering private trustsNumber of national banks administering court trusts. __Number of national banks administering corporate trusts

Number of living trusts being administeredNumber of court trusts being administered

Total number of individual trusts being administeredNumber of corporate trusts being administered

2,771,362

$516,19122315

282256

12

Total number of trusts being administeredAverage volume of individual trust assets in each bankAverage volume of trust assets in each individual trustNumber of national banks administering insurance trustsNumber of insurance trusts being administeredAverage volume of insurance trust assets in each bankAverage volume of insurance trust assets in each trustNumber of national banks holding insurance trust agreements not operative...Number of insurance trust agreements not operativeFace value of policies held under above agreementsAverage number of insurance trust agreements not operative held by each bank,

550$81,511$5,151

16$209,285

5

$14,905, 48156,920

1,347,15742, 796

321,788

$34,991,497576,690

2,592,730150, 500723,346

$74,364,355895,110

5,094,756336, 674

3,139, 493

$237,350,3053,712,519

12,411,103848,176

5,398,859

228

$1,273,547,500

$268,586,5482, 681,527

14,876, 760175,478

23,350., 761

16,674,142

$7,438,0609,236,082

39,034,763

$15, 228,81223,805,951

83,830,388 259,720,962

$32,102,64551,727,743

$122,652, 680137,068,282

16, 674,142

$3,739,96580

10724

1,613

39,034,763

$7,480,87314818458

83,830,388 259,720,962

$49,004,512287311168

1,7884,173

3,1176,676

6,18510,276

2,26144

5,961138

9,793391

15,461656

2,305$141,306

$7,37511

$5,556$5,556

1742

$879,0872

$194,203$6,548

1316

$37,520$30,485

39106

$2,328,645

10,184$335,322

$8,5602025

$25,272$20,217

74327

$8,801,9164

16,117$763,885$16,798

4067

$34,050$20,328

134908

$21,130,117

309,671,074

11,298$1,510,591

$29,2313768

$31,793$17,299

115984

$29,548,945

1-3

3O


Average volume of insurance policies held by each bank under trust agreementnot operative -

Average volume of insurance policies per trust held under agreements notoperative - - *

Average gross earnings per trust for fiscal year ended June 30, 1938Average gross earnings per trust department reporting trust earnings for fiscal

year ended June 30,1938 _Number of banks reporting amounts spent annually for trust advertisingAverage amount spent annually by each reporting bank for trust advertising-_Number of banks employing full-time trust solicitorsNumber of banks employing part-time trust solicitors

$69,762

$13,080$64

$1,1365

$65

3

$51,711

$20,931$47

$1,07619

$74

$59,709

$21,968$37

$1,27932

$54

$118,945

$26,917$45

$1031

11

$157,687

$23,271$78

$3,94687

$2061

14

$256,947

$30,029$122

$7,08556

$299

oo

o

33gOHi


Fiduciary activities of national banks during year ended June 30f 1938, segregated according to population of places in which banks were locatedContinued

Number of national banks with trust powers but not administering trustsNumber of national banks with trust powers administering trusts

Total number of national banks authorized to exercise fiduciary powers-Total assets of banking departments of national banks authorized to exercise

fiduciary powers _

TRUST ASSETSInvestmentsDeposits in savings banksDeposits in own bankDeposits in other banks.. _ .Other assets -

Total

LIABILITIESPrivate trusts _Court trusts _

Total _ .-

Total volume of bond issues outstanding for which banks are acting as trustee-Number of national banks administering private trustsNumber of national banks administering court trusts _.Number of national banks administering corporate trusts

Number of living trusts being administeredNumber of court trusts being administered. ___

Total number of individual trusts being administered.Number of corporate trusts being administered .

Total number of trusts being administered .Average volume of individual trust assets in each bankAverage volume of trust assets in each individual trust.-..-Number of national banks administering i nsurance trustsNumber of insurance trusts being administered ,.Average volume of insurance trust assets in each bank..Average volume of insurance trust assets in each trust,. .Number of national banks holding insurance trust agreements not operative..Number of insurance trust agreements not operative r_... *_

Places withpopulation50,000 to99,999

10139

$505, 715, 0132,627,84622,619,4551,606,41224,805, 529

557,374,255

$317,277, 551240,096, 704

557, 374, 255

7,19110,047

17, 238994

18,232$4,009,887

$32, 33461180

$140,021$47,452

1061,959

100,000 to249,999

114

122

$2,412, 425, 207

$797,065,5789,852,58429,362,166

247,49775,863,257

912,391,082

$669,067,037243, 324,045

912, 391, 082

$246,834,196110110

8,7297,185

15,9141,217

17,131$8,003,431

$57,33369231

$103,431$30,895

. 982,880

250,000 to

$1,103,315, 5671,477, 54741,330,183

599, 742274,139,814

1,420,862,853

$1,103, 537,922317,324,931

1,420,862,853

8,7316,195

14,9262,461

17,387$19,463,875

$95,19443223

$179,722$34,655

573,725

500,000 to

34

$4, 770,642,993

$992,131, 5305,200,314

53, 741,4136,343,817

291,438,276

1,348,855,350

$1,123,342,497225, 512,853

1,348,855,350

7,8784,830

12, 7082,424,

15,132[6,512,253$106,142

19184

$422,925$43, 672

292,527

1,000,000 orover

45

1,667,385,024

$4,028,625,43511,836,114174,815, 2493,935,477

248,618,536

4,467,830,811

$3,873,621,021594,209, 790

4,467,830,811

$8,179,631,326363727

20,9279,334

30,2618,068

38,329$111, 695, 770

$147,64321302

$1, 094, 538$76,110... 322,597

Total

3621,543

1,905

$25,986,953,015

$8,059,393,40638,945,921358,570,04114,295, 552

947,812,122

9,419, 017,042

$7,455,878,9771,963,138,065

9,419,017,042

$10,218,406,6721,2871,421787

68,90566,750

135,65517,109

152,764$6,104,353

$69,434324

1,297$178,901$44,691

70416,071

so

8

Of

gO

H3

ffl

d

a2


Face value of policies held under above agreements Average number of insurance trust agreements not operative held by each bank.Average volume of insurance policies held by each bank under trust agreement

not operative _Average volume of insurance policies per trust held under agreements not

operative - .Average gross earnings per trust for fiscal year ended June 30,1938Average gross earnings per trust department reporting trust earnings for fiscal

year ended June 30, 1938. __. - .,_ _.Number of banks reporting amounts spent annually for trust advertisingAverage amount spent annually by each reporting bank for trust advertising._Number of banks employing full-time trust solicitorsNumber of banks employing part-time trust solicitors-.-.-

$65,386,38718

$616,853

$33,377$122

$17,04250

$51239

$101,590,54929

$1,036,638

$35,274$183

$28,00147

$77558

$137,612,77465

$2,414,259

$36,943$218

$54,95437

$1,526133

$93,931,80887

$3,239,028

$37,171$314

$163,707

$3,82064

$150,923,90281

$4,716,372

$58,115$411

$415,04518

$3,046101

$612,343,41523

$869,806

$38,102

$217 g$23,401

402 A$669 M39 65 ^

oF T

HE

or1

wHO

H

OHi


Fiduciary activities of national banks by Federal Reserve districts as of June SO, 1988

Federal Reservedistricts

|1*8

Individual trusts

Io=1

a

8BostonNew YorkPhiladelphiaClevelandRichmondAtlantaChicagoSt. LouisMinneapolisKansas CityDallasSan Francisco

Total

179270230HI122861738847105

212 $109,060,213 $2,024,317,842306,292,490 6, 500,494,839

,890,578,943., 772,661,144.,030,434,601., 200,757,476

295255132148110222117

4,222 4,487

1629074

105,990,894 lv_... ,._. _, ..100,513,262 1,772,661,144 4,98254,650,240 1,030,434,601 3,31173,146,250 1, 200,757,476 3,687191,819,685 3,809,262, 296 20,11540,770,950 901,196,125 1,37239,490,000 758,732,141 2,18947,892,250 1,089,901,302 2,96655,769,910 1,072,930,364 1,552168,242,350 3,875,685,942 10,458

5,719 .8,332 17,402

6,9074,3502,8466,8682,1503,8151,875513

6,239

8,70915,017 125,73411,8897,6616,533

3,5226,0044,8412,06516,697 1

$599,666,0031,021,209,004380,188,169799,093. 367282,240,646464,774, 758

26; 983 3,626,181, 652104,698,008457,730,110400,508,062139,798,624

1,142,928,839

4721,196546

1,846452832

7,373791495720346

2,040

$371,372,9035,364,874,080112,722,578275,002,796194,277,830211.470,335

2,789,070,70591,512,95999,230.893116,640,49685,396,319506,834,778

3949283022381110212023

93 $3,455,917""" 9,946,510

9,316,5055,435,5642,384,2023,462,433

198 12,937,427828,829

1,120,2703,881,2851,072,4584,122,616

15714813978101

293210347174

,350 $53,056,377 $2, 531,000" 87,908,820 8,030,000

53,842,553 1,518,00066,431,367 2,141,00031,270,453 1,082,00032,100,420 1,246,00086.296,380 8,281,00010,605,290 471,00040,790,437 1,111,00048,501,071 1,236,00018,386,747 543,00083,153,500 5,257,000

1,543 362 1,905 1,293,638,494 25,986,953,015 68,905 66,750 135,655 9,419,017,042 17,109 10,218,406,672 324 1,297 57,964,016 70416,071 612,343,415 33,447,000

Odw3


Classification of investments in living and court trust accounts under administration by the active national-bank trust departmentsf segregatedaccording to capital of banks and population of places in which national banks were located on June 30, 1938

Trust investments classified according to capital ofbanks administering trusts Bonds

Per-cent Stocks

Per-cent

Real-estatemortgages

Per-cent Real estate

Per-cent

Miscella-neous

Per-cent

Total invest-ments

I3

I

I

3

Banks with capital of $25,000Banks with capital over $25,000 to $50,000.._Banks with capital over $50,000 to $100,000..Banks with capital over $100,000 to $200,000.Banks with capital over $200,000 to $500,000.Banks with capital over $500,000 _

Total

$110,5521,360,891

12,343,64571,158,654

210,763,8953,622,593,126

33.4045.0135.6434.7037.1249.98

$10,945911,257

10,354,11556,115,525

180,247, 5312,343,304,799

3.3130.1429.8927.3731.7532.33

$19,750429,127

4,507,60137.705,70776,448,876

451,781,971

5.9714.1913.0118.3913.466.23

$178,792257.226

5, 286,59632,668, 57058, 550,208

497,447, 777

54.028.50

15.2615.9310.316.86

$10,93065,268

2,148,7037,391,925

41,766,845333,452,599

3.302.166.203.617.364.60

$330,9693,023,769

34,640,660205,040,381567,777,355

7,248,580,272

3,918,330,763 48.62 2,590,944,172 32.15 570,893,032 7.08 594,389,169 7.38 384,836,270 4.77 8,059,393,406

Trust investments classified according to populationof places in which banks administering trusts werelocated

Bonds Per-cent StocksPer-cent



Per-cent

Miscella-neous

Per-cent

Total invest-ments

Places with population less than 1,000Places with population of 1,000 to 2,499Places with population of 2,500 to 4,999Places with population of 5,000 to 9,999Places with population of 10,000 to 24,999...Places with population of 25,000 to 49,999...Places with population of 50,0C0 to 99,999...Places with population of 100,000 to 249,999.Places with population of 250,000 to 499,999.Places with population of 500,000 to 999,999.Places with population of 1,000,000 or over-

Total

$714,8386,331,398

13,066,05724,992, 45877, 912,08496,968,512

194,401,202283, 390,221638, 356,378395, 415, 631

2,186,781,984

30.5242.4837.3433.6132.8336.1038.4435.5657.8639.8654.29

$427,0463,853, 6377,994, 398

20, 373, 40582, 340, 69180, 351, 918160,485,476317,322,674255, 641. 384376, 785,900

1, 285,367,643

18.2425.8522.8527.4034.6929.9231.7339.8123.1737.9831.90

$766,6053,287,6209,132, 70417,865,61637,923, 56433,805, 40160,173, 41261,217,02580,751,14971, 347, 421194,622, 515

32.7322.0626.1024.0215.9812.5911.907.687.327.194.83

$300,7361,035, 8913, 684,2628, 201, 57425, 973, 46838, 377,16760, 316,13980, 684,86288, 241, 28990, 621, 793196,951,988

12.846.95

10.5311.0310.9414.2911.9310.128.009.134.89

$132,872396,935

1,114,0762, 931,302

13,200, 49819,083,55030,338, 78454,450, 79640,325,36757, 960,785

164,901, 305

5.672.663.183.945.567.106.006.833.655.844.09

$2,342,09714,905.48134,991,49774,364,355

237,350,305268,586,548505,715,013797,065,578

1,103,315. 567992,131, 530

4,028,625,435

3,918,330,763 48.62 2,590,944,172 32.15 570,893,032 7.08 I 594,389,169 7.38 384,836,270 4.77 8,059,393,408

3SI


Classification of investments in living and court trust accounts under administration by the active national-bank branches with trust departments,segregated according to population of places in which branches were located on June 809 1938

Trust IBvestments classified according to population ofplaces in which branches wore located Bonds

Per-cent Stocks

Per-cent



Per-cent

Miscella-neous

Per-cent

Total in-vestments

Places with population of less than 1,000. _Places with population of 1,000 to 2,499_Places with population of 2,500 to 4,999Places with population of 5,000 to 9,999..Places with population of 10,000 to 24,999Places with population of 25,000 to 49,999Places with population of 50,000 to 99,999Places with population of 100,000 to 249,999Places with population of 250,000 to 499,999Places with population of 500,000 to 999,999_ _Places with population of 1,000,000 or over

Total.

$191,969543, 395

1,257,8203,567,9718,033,410

17,423, 52518,070, 34514,444,01420,810,599

134,493,863

218,836,911

27.5029.9732.2028.5221.9735.2738.2832.3753.6936.08

$202158, 747598, 734900, 358

4,320,43014,913,48916,081,38414,932,14119, 397, 61510,869,665109,414,245

0.5022.7433. 0223.0534.5440.7832.5531.6343.4728.0429.36

$59, 53792,660240,032656,827

1, 644,7574,519,6732,135, 655774, 398413,491

37,793,465

8.535.116.145.254.509.154.521.741.0710.14

$38,251271,088476,615

1,273,3963,283,0016,816,0928,715,2549,088, 2155,764,0884,689,48278,638,013

95.48

26.2832.6026.2418.6417.6419. 2512.9212.1021.10

$1,60816,767101,940234, 583681,041

5,159,9972,660,0942,981,7804,241,4871,974, 34212,376,249

4.022.405.626.015.4514.115.396.329.505.103.32

$40,061

1,813,3443,906,18912,509,27036,567,74549,399,93047,208,13644,621,60238,757, 579372,715,835

35.98 191,587,010 31.50 48,330,405 7.95 119,053,495 19.57 30,429,888 5.00 608,237,799

wao

|

H3


Fiduciary activities of national-bank branches with trust departments during year ended June 80, 1988, segregated according to population ofplaces in which branchs were located

Placeswith

popula-tion of

less than1,000

1,000 to2,499

2,500 to4,999

5,000 to9,999

10,000 to24,999

25,000 to 50,000 to 100,000 to249,999

250,000 to499,999

500,000 to 1,000,000or over Total

Number of national-bankbranches with activetrust departments _..

Total assets of banking de-partments of branchesadministering trusts.

TRUST ASSETS

Inves tments - ,Deposits in savings b a n k s -Deposits in own banksDeposits in other banksOther assets

23 49 54 52 45 23 19 23 17 16 43

$14,975,680 $48,381,944 $64.922,096 $109,748,201

364

$134, 557,102 $120,980, G49 $159,453,373 $183, 542,128 $172,800,492 $1,034,002,948 $813,842,055 $2,857,206,668

40,061

5,545

698,108200

350,038

1,813,34433,881

317,910

3,906,1891,875

608, 700

12, 509,27044, 342

1,285,007

75,892 4,16 109,987 42, 926

36,567,74514, 616

11,398, 6385,978

322, 377

49,399,930118,479

2,076, 9313,707

1,163,005

47,208,136117,431

2, 766, 2224,029

390,090

44,621, 602133, 878

2, 529,09325,186

1,315,047

38,757,579264, 555

2,472, 272

2, 249,458

372, 715,8351, 597,152

16,616,256712,553511,855

608,237,7992, 326, 389

40,426,612751,453

6,184,800

Tota l . 45, 606 1,124, 238 2,169, 278

Private t rus t s -Court t rus ts

5.01440, 592

446.124678; 114

1,135, 7781, 033, 600

4, 626, 751

2.493,1672,133, 584

13,881, 545

7,187, 6896, 693,856

48, 309, 354

18, 682. 36329, 626, 991

52, 762, 052 50,485, 908 48, 624,806 43, 743,864 392,153,651 657,927,053

27, C55, 79325, 70G, 259

38,161, 50012, 324,408

32,101,18716, 523, 619

37,391, 5526, 352, 312

241, 849, 277150, 304,374

406,509,444251,417,609

Total- 45, 606 1,124, 238 2,169, 278 4, 626, 751 13,881, 545 48, 309, 354 52, 762, 052 50,485,908 48, 624,806 43, 743,864 392,153,651 657, 927,053

Total volume of bond issuesoutstanding for whichbranch banks are actingas trustee....

Number of branches ad-ministering private trusts.

Numberof branches admin-istering court trusts

Numberof branches admin-istering corporate t r u s t s -

Total number of individualtrusts being administered-

Number of corporate trustsbeing administered__.,

72

15

18

1

113

4

$31,500

24

26

2

326

a

., 186, 033

23

25

5

524

14

', 916,906

14

13

6

929

25

$6,172, 635

14

14

9

1,653

32

$5,820,414

7

7

6

1,208

83

$16, 706,072

6

743

94

$25, 672, 685 $170, 817,143

2

1

1

1,072

156 777

$234, 323, 388

123

140

42

11,348

1,188

H3

woo

aaHO


NATIONAL BANK FAILURES

During the year ended October 31, 1938, there was but one actualfailure of a national bank. In addition to such single failure, receiverswere, however, appointed for two other banks, making a total of threeappointments of receivers for insolvent national banks during theyear. Of the two appointments for nonactual failures, one was forthe purpose of completing unfinished business or enforcing stockassessment against shareholders, the collection of which was necessarybecause of unsatisfied indebtedness of the institution, and one for thepurpose of reopening a receivership, the affairs of which had beenpreviously closed following completion of liquidation during the yearended October 31, 1933.

Also during the year ended October 31, 1938, 365 insolvent nationalbanks, including one insolvency resulting from the reopening duringthe current year of a receivership previously liquidated and closed,were completely liquidated and finally closed. Such total of receiver-ships disposed of during the current year represents the largest numberof terminations of receiverships in a like period during the history ofthe Office of the Comptroller of the Currency. As of October 31,1938, there remained 520 insolvent national banks still in process ofliquidation.

Total costs incurred in the liquidation of insolvent national banksfor the year ended October 31, 1938, were equivalent to 12.5 percent oftotal collections from all sources including offsets allowed* Suchpercentage of costs for the current year represents some increase inexpense of liquidation over that for the previous year of 8.81 percent.However, this nominal increase in the percentage of annual liquidationcost may be regarded as normal in view of the increased averageliquidation age of receiverships administered during the period andthe fact that percentage costs of liquidation are comparatively lowduring the early years of receivership administration but progressivelyincrease from date of failure to date of final closing. Furthermore,receivership liquidation expense has during recent years been con-siderably increased by reason of interest payments to the Reconstruc-tion Finance Corporation and lending banks upon loans made toreceivers for dividend payment purposes. Comparable data by yearsfrom 1933 to 1938, inclusive, as to total collections from assets, totalliquidation expense, interest payments upon loans, receivershipearnings, etc., are as follows:

i Including District of Columbia State banks and building and loan associations.

18


Average gross earnings pertrust for fiscal year endedJune 30,1938

Average gross trust earn-ings per branch reportingtrust earnings for fiscalyear ended Juno 30,1938_ .

Number of branches report-ing amounts spent annu-ally for trust advertising..

Average amount spent an-nuaily by each reportingbranch for trust advertis-ing

Number of branches em-ploying full-time trustsolicitors *

Number of branches em-ploying part-time trustsolicitors, _..

$233

$170

$395

$632

$340

$751

$222

$1,402

$251

$3,068

2

$300

2

$447

$19,374

1

$200

1

$184

$17,259

3

$220

$255

$14,320

1

$450

2

$269

$16,097

2

$1, 250

1

1

$148

$12,093

$339

$46,285

1

$288

$10,357

9

$490

2

6

8

or1

ofag

W

o


NATIONAL BANK FAILURES*

During the year ended October 31, 1938, there was but one actualfailure of a national bank. In addition to such single failure, receiverswere, however, appointed for two other banks, making a total of threeappointments of receivers for insolvent national banks during theyear. Of the two appointments for nonactual failures, one was forthe purpose of completing unfinished business or enforcing stockassessment against shareholders, the collection of which was necessarybecause of unsatisfied indebtedness of the institution, and one for thepurpose of reopening a receivership, the affairs of which had beenpreviously closed following completion of liquidation during the yearended October 31, 1933.

Also during the year ended October 31, 1938, 365 insolvent nationalbanks, including one insolvency resulting from the reopening duringthe current year of a receivership previously liquidated and closed,were completely liquidated and finally closed. Such total of receiver-ships disposed of during the current year represents the largest numberof terminations of receiverships in a like period during the history ofthe Office of the Comptroller of the Currency. As of October 31,1938, there remained 520 insolvent national banks still in process ofliquidation.

Total costs incurred in the liquidation of insolvent national banksfor the year ended October 31, 1938, were equivalent to 12.5 percent oftotal collections from all sources including offsets allowed* Suchpercentage of costs for the current year represents some increase inexpense of liquidation over that for the previous year of 8.81 percent.However, this nominal increase in the percentage of annual liquidationcost may be regarded as normal in view of the increased averageliquidation age of receiverships administered during the period andthe fact that percentage costs of liquidation are comparatively lowduring the early years of receivership administration but progressivelyincrease from date of failure to date of final closing. Furthermore,receivership liquidation expense has during recent years been con*siderably increased by reason of interest payments to the Reconstruc-tion Finance Corporation and lending banks upon loans made toreceivers for dividend payment purposes. Comparable data by yearsfrom 1933 to 1938, inclusive, as to total collections from assets, totalliquidation expense, interest payments upon loans, receivershipearnings, etc., are as follows:

1 Including District of Columbia State banks and building and loan associations.

18


REPORT OF THE COMPTROLLER OF THE CURRENCY

Annual liquidation costsnational bank receiverships, 19S3-38

19

Year ended Oct. 31

19331934.. . .1935. .._193619371938..

T o t a l . . . . . . _

Number ofreceiver-ships ad-

ministered

1,3251,6491,5821,4271,223

885

1,773

Total collec-tions from allsources, in-cluding off-sets allowed

$357,910,22709,709,399361,513, 764185,513,628156,829,98585,773,322

1,657,250,325

Total ex-pense ofliquida-

tion

$11,507,38923,744,02827,872,95519,052,76513,823,37910,717,529

106,718,045

Percentagecost of

liquida-tion

3.224.667.71

10.278.81

12. 50

6.44

Interest pay-ments to

R. F. C. andlending bankson dividendloans to re-

ceivers

i $470,107334,766

5,608,1043,992,1321,031, 254

439,136

11,875,499

Receivershipearnings,interest,

premiums,rent, etc.

(?$24,370,85817,149,51512,109,2209,679,149

63,308,742

i Including $19,374 of interest paid in 1932, from date of inception of Reconstruction Finance Corporationdividend loan activity.

* Data unavailable as separate figure.

During the current year loans obtained by receivers of insolventnational banks from both the reconstruction Finance Corporationand from commercial or lending banks have been employed to expeditethe distribution of dividends to depositors and creditors of insolventnational banks. The interest rate upon receivers' dividend loansfrom the Reconstruction Finance Corporation is now 3 percent perannum, while loans from commercial or lending banks are obtained atinterest rates of from 2% to 3 percent per annum. Such loan activityfor the current year, as well as cumulative loan data from the incep-tion of such activity to October 31, 1938, was as follows:

Reconstruction Finance Corporation and Lending Bank dividend loan data

Year ended Oct. 31,1938

Loancommit-mentsmade

Loans

Advances Repay-ments

Total cumulative data to Oct. 31, 1938

Loan com-mitments

made

Loans

Advances Repay-mentsBalance

due

Reconstruction FinanceCorporation

Lending banks.

Total . .

$6,118,000 $4,514,108 $7,989,691 $500,613,500 $393, 913,475 $388,488,323 $5,425,25,824,100 20,275,400 14,267, ~~~ ~~

0,613,90, 319, 760 79, 680,086

. i, 15268, 219,786 11,460,300

31,942,100 24, 790, 508 22, 257, 244 590,933,260 473, 593, 561 456,708,109 16,885,452

It has been considered desirable to continue during the current year,asset liquidation procedure first adopted in 1935, involving the disposalat public auction of real estate properties held by receivers. Thisform of liquidation has been found effective in the disposition of realestate properties and equities of insolvent national banks. Figuresrelative to real estate auction sales held and reported upon by re-ceivers of insolvent national banks from the inception thereof in 1935to October 31, 1938, are as follows:



National bank receivership real estate auction sales 1935-38

StateNumberof banksinvolved

1921

111635123462

2510116

17201025

11571

113S

263

Numberof items

sold

1,200314

72418536819431

863917

4341158551071601975032526

22726028220

29334

175

7,411

Receivers*estimated

liquidationvalues

$600,76641,47512,650

307,871146,489777,760541, 67859,975

436,935142, 29024,700

2, 526,076102,220782,835247, 210651,438

1,477,190477,005187,710114,500728,998774,197278,45413,100

257,11054,080

431,000

12,195, 712

Total ac-ceptablebids re-ceived

$500,15941,3553,605

234,41499,394

426,454390,46851,560

363,009133,53018,950

1,504,55066,094

455,539151,134440,839

1,129,066300,836134,60886,770

557,705574,232208,36710,225

191,16442,667

240,589

8,357, 283

Liens as-sumed in

addition tobids re-ceived

$32,9341,3781,169

84,8825,098

116, 5465, 2132,378

13,19412, 6031,663

110, 65612,038

101,43531,21548,93135, 246

135,4960

1,7135,981

22,13117,0122,5462,127

0148,669

952, 254

Proceedsimme-diately

realized incash

$428,98020,2773,605

120,01075,466

376,504252,25543,900

289,845124,244

9,640718,51366,094

380,068151,134275,269807,025222,220110,20169,984

541,000398,662137,52810,225

164,46331,607

159,580

6,988,299

AlabamaArkansasCaliforniaFloridaGeorgiaIllinoisIndianaKentuckyLouisianaMaineMassachusetts..MichiganMinnesotaMississippiMissouriNew JerseyNew YorkNorth CarolinaOhioPennsylvania..South Carolina.TennesseeTexasVermontVirginiaWest Virginia-Wisconsin

T o t a l . . . .

National bank suspensions, actual failures, for ivhich receivers were appointed,1912-38

Year ended Oct. 31

191219131914191519161917191819191920192119221923192419251926

Numberof banks

85

2112137216

383251

1279591

Deposits

$3,665,5765,995, 9977,516,1828,203,7651,997,0204,327,1661,543,397

283,6843,154,793

13,084,6378,982,862

17,358,27448,816,36639,836,69030,616,232

Year ended Oct. 31-

192719281929193019311932193319341935 . .193619371938

Total

Numberof banks

111527188

357322396

14

41

1,916

Deposits

$46,113,68819,798,22446,448,30149,707,145

361,976,551250,494,710255,049,262

41,9505,398,802

4,348,72336,118

1,234,796,115


BBPOKT OF THE COMPTEOLLBR OF THE CURRENCY 21

NUMIStR OF C>ANKS

450

NATIONAL BANK SUSPENSIONSACTUAL FAILURES, YEARS ENDED OCTOBER 51, 1912-1938

FOR WHICH RECEIVERS WERE APPOINTED

400

550

500

250

200

150

100

50

NUMBER Of BANKS

450

..!._.Ill

400

350

500

250

200

150

100

50

NUMBER 8 5 21 12 15 7 2 I 6 38 32 51 127 95 91 II! 52 71 &$ 357 322 396 1 4 0 4 ! N6M6M

Dates of receivers1 appointments and dates of suspensions of banks are not necessarily the same.

Banks are not considered as actual failures where the depositors were paid in full and the banksplaced in voluntary liquidation and it later became necessary to appoint receivers to collect stockassessments or for other purposesplaced in voluntary liquidation anassessments or for other purposes.

During 1933, 393 suspensioccurred during the remaindeliquidation of 292 banks which suspended beforereorganized with partial payments to depositors.

nsions occurred before or during the banking holiday, while only threender of the year. In addition receivers were appointed to complete thewhich suspended before or during the banking holiday and which later werepayments to depositors.

In the 10 banks suspended 1034 to 1938 Inclusive, all deposit accounts up to S5,000 were Insuredby the Federal Deposit Insurance Corporation.



Relative to the length of time required to complete liquidation ofinsolvent national banks a compilation has been made covering thoseinsolvent national banks liquidated and finally closed during theyear ended October 31, 1938, and for those receiverships finally closedduring the 17-year period 1921 to October 31, 1938. From datacompiled it has been found that insolvent national banks liquidatedand finally closed during the year ended October 31, 1938, exclusiveof those banks for which receivers were appointed for the purposeonly of completing unfinished business or enforcing stock assessments,required an average period of 5 years and 6 months, with a minimumperiod of 2 years and 11 months, for liquidation. With reference toinsolvent national banks, the affairs of which were finally closed duringthe 17-year period, 1921 to 1938, exclusive of those banks restoredto solvency and banks for which receivers were appointed for thepurpose only of completing unfinished business or enforcing stockassessments, the average period of liquidation is found to have been5 years and 2 months.

In following paragraphs will be found tables reflecting the progressand results of liquidation to date for various groups of insolventnational banks and District of Columbia State banks, administeredunder the supervision of the Comptroller of the Currency. Datawith respect to the liquidation of such banks has been given separatelyfor the national and the District of Columbia State banks, as wellas in total for all banks involved. The following paragraphs andtables are supported by various schedules appearing in the appendixof the report furnishing in detail for each insolvent national bank inliquidation during the current year, data as to the progress and resultsof liquidation under the administration of receivers appointed bythis office.

Banks placed in receivership, year ended October SI, 1988

Of the three national banks for which receivers were appointedduring the past year, none was restored to solvency, leaving the entirethree banks to be administered by receivers. Of the three nationalbanks so administered by receivers, one was placed in receivershipfor the purpose of completing unfinished business or enforcing stockassessment against shareholders because of unsatisfied indebtedness ofthe institution, and one for the purpose of reopening a receivership,the affairs of which had been previously closed following completionof liquidation during the year ended October 31, 1933. There was,therefore, but one actual failure of a national bank during the yearended October 31, 1938.

The capital of the three1 insolvent national banks for which receiverswere appointed was $50,000, while the assets of such banks, includingassets acquired subsequent to their failure, totaled $353,167. Col-lections from these assets, including earnings, offsets allowed, andcollections from stock assessments as reported by receivers to Septem-ber 30, 1938, amounted to $190,166, or 53.85 percent of such assetsand stock assessments. Total earnings collected by receivers fromthe assets of these banks amounted to $35,884 as against $3,797 oftotal expenses incurred. These collections and the disposition thereofwere as follows:

1 Liquidation data given include only net change during current year in liquidation totals for one pre-viously closed receivership, reopened during current year for additional liquidation.


REPORT OF THE COMPTROLLER OF THE CURRENCY 23Liquidation statement,l 8 administered receiverships, receivers appointed year ended

Oct. 81, 1988

Collections:Collections from assetsCollections from stock assessmentsEarnings collected . .Offsets allowed and settled (against assets) _ _

Total -

Disposition of collections:Dividends paid by receivers to unsecured creditorsDividends paid by receivers to secured creditorsPayments to secured and preferred creditors other than

through dividendsOffsets allowed and settled (against liabilities) ,_..Disbursements for the protection of assetsPayments of receivers' salaries, legal and other expensesAmounts returned to shareholders in cashCash balances in hands of Comptroller and receivers

Total -

Total allreceiver-ships, 3

$151,1122,117

35,8841,053

190,166

2 70,83575,452

150,1211,053

623,7979,087

21,429

190,166

District ofColumbiaState bankreceiver-ships, 0

Nationalbank

receiver-ships, 3

$151,1122,117

35,8841,053

190,166

2 70,88575,452

150,1211,053

623,7979,087

21,429

190.166

1 Including 1 receivership previously closed but reopened for additional liquidation during currentyear. Liquidation data given include only net change during current year in liquidation totals for thereopened receivership.

* Credit adjustment in accordance with revised figures submitted by receivers.

In addition to the above record, it is found that total claims proved,both secured and unsecured, aggregated $10,603. Total deposits ofthese banks at date of failure amounted to $36,118, while borrowedmoney consisting of bills payable, rediscounts, etc., totaled $16,237.

Receiverships 1865-1988

From the date of the first failure of a national bank in the year1865

compcurr_1938

Documents