Date of Award


Document Type


Degree Name

Master of Arts (M.A.)



First Advisor

Robert Cromwell Root


In this paper it is hoped to present an accurate account of branch banking conditions. as they exist in California, followed by an expression of the writer's views upon the subject which have come from an impartial consideration of the movement from several standpoints.

Part one explains briefly the nature of branch banking , tells something of its importance and success in other countries and of its development in the United States. A discussion of the branch systems that are active in California and a detailed description of the origin, growth and importance of one large organization in the state gives an idea of the :prominence this movement is assuming.

In part two the arguments for and against branch banking are presented and discussed from a theoretical basis, and also compared with the results of this type of banking a s reported by those who have had dealings with both unit and branch organizations.

One difficulty confronting a study of this nature is the number of changes t hat are constantly taking place. Large banking systems are being consolidated into single organizations. Holding companies are formed to bring. important organizations, both unit and branch, under central control. In banking, as in other types of business, the movement is toward fewer and larger systems.

Since this study was begun in 1928, a number of such changes have taken place. In all cases an attempt has been made to revise the material to conform with conditions as they existed January 1, 1930. Many times it has not been possible to determine completely the inter-corporate relations between large organizations.

Much of the material for t his study has been taken from magazine articles written by bankers and students of banking problems. The daily newspapers have been another source. To date, very few books have been published which treat of this subject except in a very general way.

It is hoped that some ideas have been developed which, while likely not new to those who have made studies of this subject, will be taken as an attempt on the part of the writer to present the strong and weak points of branch banking as he sees it.