The CHAIRMAN. In your statement, I want to ask you to include, down to date, the important failures that we have had with banks and branches. Mr. POLE. Yes. The CHAIRMAN. There are a number of instances, that is, that I do not for the moment recall, but, for instance, one up in Massachusetts some short time ago, and, as I remember, there was probably 12 or 15 branches of the bank that failed there. It was not such a large bank, but compared to many of our small banks, it was a large bank. Mr. POLE. Yes. Mr. STEVENSON. I would like for him to give us the line of demarcation between that class of banks which have branches that have failed, and the class which he advocates: because he has the idea of the system that he proposes, which is different in principle from these that have been established by universal consent, you might say, and, of course, that is a substantial difference, and we would like to have it. Mr. POLE. I will be glad to include it, Mr. Stevenson. Mr. STEVENSON. I would like for your statement to trace the figures from the beginning of the national system-I do not mean by that, year by year, but, such as you, of course, understand to be pertinent to what we are discussing, to bring them down to date. and I would like to have the figures-we have them somewhere, but for the moment I can not lay my hands on them-if they are conveniently available, I would like to have the figures showing the number of banks that have failed, with small capital; then the number of large banks that have failed. But not stopping there, I also want the figures embracing what was shown with reference to the deposit in those failures, as between the small banks and the large banks. Mr. POLE. Yes; I will do that. he CHAIRMAN. NOW, for instance, this bank failure in New York lved more, from the point of resources and deposits, than a le State full of little banks like we have down in my country. t is what I want to develop. r. POLE. Yes; to distinguish between the banks which have t we might call additional offices within the metropolitan area, branch banks, which reach out into small towns and rural comities, Mr. Chairman. he CHAIRMAN. Yes; I appreciate the distinction there or I k I do. r. POLE. Because one might be called a branch banking system le the other might be called a bank which has additional offices. he CHAIRMAN. Yes; I follow you there, and I would like for e figures to show the losses, year by year, as far as your figures been completed-the losses to the depositors, of course, and I n in the national system. r. POLE. Of course, we must take into consideration that the e majority of the failures, which situation we are trying to corare State banks. he CHAIRMAN. Yes; I am not unmindful of that; but what I trying to get at, first, is the national system. I mean, this bill not touch the State systems directly, except the State banks are members of the Federal reserve system. Of course, I ize that we should not figure the State system in our calculas, and I am sympathetic with any sound plan that will embrace State banks and take care of depositors in State banks, but my does not contemplate that. My bill attempts to deal with the onal banks and the State banks that are members of the Federal I've system. r. POLE. Well, Mr. Chairman, I am very much afraid that if were to put in a system of guaranteeing deposits in national and e member banks the withdrawals from the non-member banks ld be so great and so important in amount as to cause some of to fail. he CHAIRMAN. Well, the Federal reserve system, of course, perState banks to join if they are in condition to join. г. POLE. That is true, but we must remember that we have almost e as many nonmember State banks as we have combined national State member banks. he CHAIRMAN. In the Federal reserve system? r. POLE. Yes. he CHAIRMAN. Yes; I understand that. r. POLE. So that it is conceivable that, in a system of bank guare of deposits, the deposits might be drawn from those 13,700 s in such amounts, before they could ever get undercover in Federal reserve system in he CHAIRMAN. I appreciate that a State bank that did not join Federal reserve system would be at some disadvantage unless appened to be a bank whose standing in the community was that the people had proper confidence in it. Of course, in a e bank as to which the public is lacking in confidence would itself in difficulty if it had a national bank, or a State bank ss the street from it, where we had the deposits safe for deposThat is quite true and must be recognized, but I am starting |