The banking system of the United States is dual in the sense that some institutions are authorized by federal statute and charters and other institutions by state statute and charters, and the two classes have developed in competition with each other.

The financial institutions to which federal charters are granted or which operate under federal law include:

1. Federal Reserve Banks.

2. National Banks, Some Of Which Have Local Or Foreign Branches.

3. Federal Land Banks.

4. Federal Joint-Stock Land Banks.

5. National Farm Loan Associations.

6. Postal Savings Depositories, Including Branch Post-Offices And Stations.

7. "Edge" Corporations.

8. The War Finance Corporation.

The state institutions are more varied in their nature, purpose, and operations. They embrace:

1. Commercial Chartered Banks.

2. Private Individual Banks.

3. Trust Companies.

4. Mutual Or Trustee Savings Banks.

5. Joint-Stock And "Special Deposits" Savings Banks.

6. Bond Houses And Investment Companies.

7. Co-Operative Savings Associations And Building And Loan Associations.

8. Morris-Plan Banks.

9. Personal Loan Companies.

10. Personal Loan Brokers.

11. Land Banks.

12. Mortgage Loan Companies.

13. Credit Unions.

14. Discount Houses.

15. Acceptance Houses.

16. Note Brokerage Houses.

17. Finance Companies.

18. Cattle Loan Companies.

The emphasis of this book is on commercial banking and the development of the federal reserve system. It is the purpose of this chapter to present the historical background of this system. Non-commercial banks are treated less fully, the discussion of such institutions being limited to Chapters XXIII and XXIV.