A ruling by Attorney General Daugherty stated that national banks might have branches in the cities of their location, but such branches could only accept deposits and cash checks, and not lend money or purchase securities.
This sudden ruling threw into a quandary such New York City national banks with branches, as the City, Mechanics' and Metals, Chase, Chatham and Phenix. Subsequently it was discovered that the Attorney General's ruling covered only branch banks established since 1917; this relieved bankers' minds.
The Attorney General's dictum was apparently an outgrowth of the strong...
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