Mr. Paul,
There was a terrible problem securing pure bentgrass seed in those days. Some bags of seed were diluted with so much red-top grass seed that there was really more red-top in the mix than bentgrass. Most of the seed was coming from overseas. There was however some bentgrass seed harvesting in Washington state from where bentgrass grew in the wild, and that supply seemed to be reliable.
Reginald Beale traveled to the very best clubs in America and he recommended his own pure supply of seed. Those clubs included Huntington Valley, Onwentsia, Mayfield, CC of Detroit, Merion, Myopia, Old Elm, and several others.
The USGA became involved in finding good grasses on golf courses and bringing vegetative samples back to grow in test plots. Those good grasses were from original seeds that just happened by chance to perform well. From these plots, seed was harvested to be planted on test plots all around the country were the grasses could be observed in different geological locations. The program was very very sophisticated with detailed mangement practices and everything.
To answer your question: I don't know if they intended to develop a commercial seed supply. I do know that various clubs around the country went to the USGA plots and obtained vegetative samples of their own for developing their own nurseries. The Superintendent at Westmoreland in Chicago, for instance, brought back C-15 bentgrass and developed a nursery on his course. From his own nursery he split plants and transplanted C-15 on all the greens until the entire course was C-15 greens. Those greens were the best greens in the entire midwest, and a nursery then obtained samples of the C-15 from Westmoreland and developed its own commercial supply that was transplanted, not from seed, but vegatatively.
There is a similar story to this with the Merion Bluegrass, which by the way is to this day, one of the best bluegrasses still.
Vegetative propagation assured that the green would be a monostand with no genetic diversity. You see, if a green was seeded from seed that was collected in the wild woodlands of South Germany, there might be great diversity of the grasses in the greens, but a vegetative propagation assured that the green would be a very uniform monostand.
The problem however, was that the lack of genetic diversity made the grass highly susceptable to pathologies. The great C-15 greens died of bacterial wilt starting at Butler National during the Western Open. C-15 could not tolerate cutting at an 1/8th of an inch.
The warm season grasses fill in quite nicely from vegetative propagation, but in the north it is more economical to get a good stand of grass up and playable from seed.