THE HISTORY, ORGANIZATION, AND POLICIES OF THE BANK OF AMERICA NATIONAL TRUST AND SAVINGS ASSOCIATION*

Abstract

s of Doctoral Dissertations 441 communities. At the same time, large amounts of low-interest credit have been brought to rural areas, along with the first serious competition to many unit banks in remote localities. In addition, it has pioneered the field of selling bank credit as a merchandisable product, taking the lead in advertising, in newspapers and on the radio (now on TV also). It has carried the division of labor far into its organizational structure and has consistently moved toward the frontiers of banking methods. For example, its Ten Plan, consumer credit service (Time Plan) and School Savings Plan were the first of their kind anywhere. Its size and state-wide structure naturally involve the question of monopolistic influence. Careful investigation leads to the conclusion that it is not a monopoly, in the commonly accepted economic sense. It does not control the source of supply as a monopolist is supposed to do, but acts as though it were in fierce competition, for the available business, with the more than two hundred other California banks, government financial agencies, and small loan and insurance companies. It does exert some influence, not always undesirable, on loan rates and general banking practice. On balance, however, as presently constituted and managed, it is a socially desirable financial institution and appears as a skilful competitor rather than a successful monopolist. This content downloaded from 207.46.13.176 on Mon, 20 Jun 2016 06:15:31 UTC All use subject to http://about.jstor.org/terms