BRANCHES 
1. Domestic Branches—Before the enactment of the McFadden Bill 
the National Bank Act did not give national banks the privilege of 
establishing domestic branches; it did, however, contain a provision 
whereby a State bank converting into a national bank was permitted 
to retain in operation existing branches to which capital had been 
definitely assigned by the parent bank. Such a bank, upon reorganiza- 
tion, might continue as a national bank operating domestic branches, 
or it might merge with another national bank (under the Act of 
November 7, 1918) and be the means by which the latter national 
bank acquired domestic branches. National banks were, however, 
permitted to establish one or more additional offices in the home 
city of the bank upon authority from the Comptroller of the Currency 
under regulations formulated by him in accordance with opinions 
interpretive of the National Bank Act rendered by the Attorney 
General on May 11, 1911, and October 3, 1923. A bank desiring to 
establish one or more outside offices was required to make application 
to the Comptroller giving full information regarding the proposed 
additional offices and the circumstances making their establishment 
necessary. The operations of such offices were limited to the receipt 
of deposits, the payment of checks and the performance of routine and 
administrative functions; they were established only in localities 
where State banks were permitted to engage in branch banking and 
then only in event it were shown that the effective conduct of the 
bank’s business required the additional office or offices. 
The establishment and operation of domestic branch banks by 
national banks are at present governed entirely by conditions set 
forth in the Act of February 25, 1927. With regard to branch banking 
activities of national banks, this act provides, in general, for the 
retention of any branches which were in lawful operation on the above 
date, and authorizes the establishment and operation of new branches, 
subject to the approval of the Comptroller, within the limits of the 
city in which the parent bank is located provided the laws of the State 
in which the bank is located extend this privilege to State banks. 
The authority to establish new branches is limited by several 
conditions. Branches may not be established without the consent and 
[391