4,156,871 07 859,339.95 6.867,945.13 2,037,200.00 20,518,264.37 2,940,000.00 1,783.550.50 45,967,716.45 843,648.08 18,227,358.05 84 421,277.23 1,100,000.00 914,680.00 55.935,000.00 837,268.23 541,226.04 67.912,802.20 12,844.594.34 812,431,993.56 16.437,000.00 8.815,500 00 1,701,175.00 8,732,550.00 11,585,700.00 4,518,400.00 9,815.550.00 36.625,000.00 4,050,000 00 5.501,264.24 2,365,000.00 18.801,100.00 2,800,000.00 2,737,700,00 200.000.00 730,000.00 24,892,800,00 925,000.00 622.782.70 3,799,102.85 8.187,267.68 6,141,593.72 15,190,676.04 44 132,100.94 5.981,110.82 2,704 567.16 2,028,767.94 19.923,614.38 1,863,518.50 425,615.98 70,559.44 1,206,015 20 4,376,240.42 46,511,444.69 162,302 588 40 88,940,316.84 115,024,852.84 639,488,846.64 19,042,289.11 13,867,077.36 31,364,890.90 206,816,570.18 31,153.810.57 1,535,325.56 3,317 959.26 12,25€,877.37 427,157,957.66 4,381.130.12 2,912,918,105.22 64,756,183.31 164,316.21 1,026,319.15 91.384,739.39 6 608 915.27 8,539,621.17 267.158.24 6,155,544 35 20,474,616.80 5,614,787.11 5,083,620.39 73,811,817.79 6,211,530.02 2 353,115.24 3,279,534.74 28,471,896.91 1,235,488.34 3,089,741.78 4,624.37 124.895.44 22,633,258.10 431 477.63 397,943,902.57 13,623,492.04 67,100.00 22,726,693.08 150,118,259.25 47,791,696.66 73,717,203.04 21,787,872.82 53,343,611.97 6,258,455.51 15,326,819.53 1,027,664,535.15 177,301,215.86 92,822,904.60 6,967,356.36 65 198,641.89 202,550,172 88 105,215,097 67 145,114,199.27 794,056,765.37 35,284,929.95 24,426,024.00 39,038,193.58 274,013,181 47 37,052,812.41 7,788,383.32 3,593,143.07 14,317,288.01 502,881,545.43 6,006,519.38 3,654,845,649.42 88,574,393.41 1,633,675.92 666,624,239.49 3,138,386.49 7,143,045.13 1,443,867,882.47 1,100,305.48 175,419,304.86 1,160,700.00 12,412,419.84 9,892,278.15 111.573 365.49 5,896,084.71 69,414,177.87 7,582,735.07 96,373,777.65 911,926.71 12,612.506.59 6,298,643.08 21,714,876.38 Rt. Rev. Leighton Coleman of Delaware. William J. Gaynor, ex-mayor of New York. Henry H. Rogers, vice-president Standard Oil Company. Joseph Pulitzer, editor of New York World. U. S. Senator Stephen B. Elkins of West Virginia. Ceorge M. Pullman of Pullman Palace Car Company. Sidney Dillon, railroad president. Thomas A. Sperry of Sperry & Hutchinson, Capt. J. J. Vandergrift of the Standard Oil Company. William Thaw, vice-president Pennsylvania Railroad. Capt. Frederick Pabst of Milwaukee. There are also numerous wills, such as that of the late J. Pierpont Morgan which give discretion to executors and trustees to appoint trust companies as trustees. Fundamental changes have been made in the banking laws of the country during the war period and as a result of the enactment of the Federal Reserve system without, however, affecting the progress of trust companies. Following the test case which determined the constitutionality of the provisions of the Federal Reserve Act granting trust powers to National banks, the trust company people held forth the hand of good will and mutual cooperation toward the National banks, of which over 1,200 have already availed themselves of the permission granted by the Federal Reserve Board to establish trust departments, subject to the statutory regulations of the various States in which they are located. Most of the leading banks of New York City have also actively entered the trust field and at the last sessions of the New York, New Jersey and Pennsylvania legislatures laws were enacted extending trust powers likewise to State banks. As a result of this intensified competition there has been a pronounced increase in the amount of advertising and educational literature regarding fiduciary service issued by both trust companies and banks. Various State banking reports indicate that the aggregate amount of Liberty bonds and Victory notes subscribed to by trust companies of the United States in their own behalf and for their customers aggregates close to $5,000,000,000 of the total of $21,000,000,000 for all five war loans, the State banks and trust companies of New York alone having a total of $3,578,978,000. In addition the trust companies met every demand for subscription to the various issues of Treasury certificates. When President Wilson issued his appeal for concentration of the nation's banking and financial resources the trust companies of the country responded in a patriotic spirit by joining the Federal Reserve system and transferring their gold reserves to the Federal Reserve banks. Today, practically three-fourths of the banking power held by trust companies is represented in the membership of the Federal Reserve system. The future looms up bright and most inviting for still greater expansion of trust company business and service. The establishment of Community Trusts and Foundations affords a new avenue of salutary influence in directing the surplus wealth of the country toward beneficient, educational and charitable advancement. Up to the present time such community organizations have been established in Cleveland, St. Louis, Spokane, Chicago, Milwaukee, Los Angeles, Attleboro, Mass.; Minneapolis, Boston, Houston, Tex.; Detroit, Seattle, Sioux City, Iowa; Indianapolis, Louisville, Providence, Hawaii, New Orleans, Philadelphia, Pittsburgh, Worcester, Mass., and Buffalo. Active steps are also under way for creation of similar trusts and foundations in New York, Cincinnati, Baltimore, Wilmington and a number of other cities. The changed financial and economic perspective created by the war has given a new impulse also to broadening of trust company functions. Many trust companies are now actively dealing in foreign and domestic acceptances. Foreign exchange and credit operations have grown to large volume. As pioneers in the foreign banking field the foreign branches of leading New York trust companies in London and Paris rendered invaluable service during the war as Government depositaries and are today outposts of American foreign trade and credit expansion. From the constructive side of internal service the Trust Company Section of the American Bankers' Association is also developing new measures, including greater standardization of fees for various classes of trusts; standardization of clauses in trust forms in most common use; more effective publicity and advertising methods and development of thrift campaigns. As the result of a conference between representatives of the Trust Company Section, A. B. A., and a committee of the American Bar Association steps are in progress to smooth out the differences which have arisen between trust companies and lawyers. Instead of being an encroachment upon trust companies the entry of National and State banks upon the trust department field is bound to increase public interest and understanding in the advantages of trust department service. Their hundred year record, and their stability and safety in the administration of trusts is the best assurance that the trust companies of the United States will forge ahead with even greater incentive and success. "MAKE-A-WILL-DAY" BSERVANCE of "Make-A-WillDay" on January 21, 1920 in connection with the "National Thrift Week" campaign conducted by the Young Men's Christian Association through its 2500 branches and having the active cooperation of the Trust Company Section, American Bankers' Association, suggests the advisability of continued, systematic, nation-wide effort to quicken public perception of the dangers arising from procrastination or badly constructed wills. An intensive campaign of education in that direction offers the most fertile field for emphasizing the advantages of having trust companies appointed to safeguard estates and protect dependents as trustees or executors under will. Many thousands of dollars and much effort have already been expended by trust companies through advertising and literature in preaching the gospel of benefits secured through corporate trusteeship versus individual custody or administration of estates. But such individual or even community efforts lack the continuity and effectiveness of a nation-wide and systematically conducted campaign of education by means of concerted publicity on the part of trust companies, co-operative display advertising in local newspapers. follow-up literature, moving picture and other agencies. It will pay the Trust Company Section of the American Bankers' Association and the various state organizations of trust companies, as so often suggested in these columns, to retain expert service and unearth from the court records of leading trust company centers the lessons of safety of trust company management of estates as contrasted with the losses, defalcations and other inherent drawbacks which attend appointment of individuals as trustees and executors. Wherever separate investigations of court records covering a sufficient period of time to trace the course of estate management to settlements have been conducted the results have been astonishing in demonstrating trust company integrity and thfulness as contrasted with millions lost every year through malfeasance, inability or death of individual custodians. The "Make-A-Will-Day" should become an annual fixture as well as "National Thrift Week." As Chairman of the Young Men's Christian Association Committee on "Make-A-Will-Day" Mr. Alexander J. Hemphill, chairman of the Guaranty Trust Company of New York, has rendered an excellent service in enlisting the active co-operation of the Committee on Publicity of the Trust Company Section, A. B. A., headed by F. H. Sisson. Many trust companies availed themselves of the effective posters, window cards, poster stamps, moving picture "trailers" and other literature provided by this Committee. The interest created and the co-operative efforts aroused should serve as a stimulus for a sustained popular campaign by the trust companies. In fact every working day of the year should be a "Make-A-Will-Day" for trust companies. Trustees and Railroad Legislation As trustees under corporate mortgages, equipment trusts, custodians of sinking funds and fiscal agents the trust companies are vitally interested in return of the railroad properties to private ownership March 1st on a basis that will prevent default and assure adequate return for preservation of railroad investment values and also their credit. Trust companies as trustees cannot be held liable for any default which railroads may incur in connection with their bonded obligations and which may be due to acts of the sovereign power. The form and scope of trust company liability as trustees under corporate or railroad mortgages has been a subject of discussion for a number of years. It would be well for trust companies to appoint a committee to take up with railroads the adjustment of differences as to such liability and to modernize corporate trust indentures. Unquestionably the railroads will not return to their pre-war status. It would be apropos at the same time for trust companies and railroads: to come to a more definite understanding as to the basic and essential forms of railroad mortgages. WHAT AMERICA'S LEADING BANKERS AND PROBLEMS OF DOMESTIC AND INTERNATIONAL FINANCE, RAILROAD CONTROL, PRICE (EDITOR'S NOTE: While the year following the signing of the Armistice was one of extraordinary trade, business and banking records there is general agreement among this country's foremost authorities that continued prosperity during 1920 depends upon furnishing adequate credits to foreign buyers, the return of railroads to private ownership with guarantees that shall restore their credit; the orderly deflation of currency and credit and a speeding up of production as well as a return to rational standards of living. Many advance predictions were upset during the past year, notably in regard to our foreign trade which reached new levels, leaving an export balance of over $4,000,000,000 and creating a margin of exports over imports since the first of 1915 amounting to $15,000,000,000. It is significant that, notwithstanding the many problems which press for solution during this year, the general tone is one of strong faith in the continued prosperity of the United States). PROBLEMS CONFRONTING AMERICAN BANKERS AND BUSINESS MEN JAMES S. ALEXANDER President National Bank of Commerce in New York For the year 1920 the American business man, whether he is engaged in domestic or foreign commerce, must also give definite consideration to a number of special problems. Some of them are of national scope, others of a worldwide significance that ordinarily would not exist or would have a remote bearing on his individual business. Among them may be mentioned the following: 1-The disposition of the nation's railroad systems. 2-The future of America's war-built mercantile marine. 3-The Peace Treaty. 4 Income and profits taxes. 5-The element of radicalism in the labor situation. 6-The question of the foreign exchanges, involving the relation of imports and exports and the depreciation of foreign currencies. 7-The question of financing Europe's purchases in America on a long-time basis. 8-Political conditions in the countries of Europe. This list does not include, as a special item, the approach of our own Presidential election, since the 1920 campaign will differ from previous ones chiefly in so far as some of the above mentioned questions may be reflected in the issues raised politically. As to the first item mentioned above: The status and administration of the national transportation systems, always taken for granted, have become one of the great business problems of the day. Efficient railroad service and rates at levels that will promote trade are essentials for business. The prospect in this regard is a question for every business man to consider both in direct application to his own special field and in respect to the general situation. It is obvious that the way the national railroad system functions may well be a determining factor in our national prosperity. The disposition of America's war-built marine also presents a special problem. Shipping has become of greater relative importance in our national economy since our foreign trade has become much greater than formerly. The solution of these transportation problems, as well as of the Peace Treaty, and whatever adjustment may be necessary in income and profits taxes, require Governmental action and are not directly in the hands of The labor situation, however, which is apparently at this time becoming less menacing, is neither purely a Governmental matter nor one strictly for business alone. The extent of strike movements has come to affect pubblic necessities. Therefore, this phase of the problem must be worked out by the combined efforts of all elements in our national life. The final settlement, of course, must rest upon a sound basis of agreement between capital and labor. In so far as Government activity tends to promote this agreement, with due consideration of the rights and welfare of the public, that action will be a constructive contribution to the problem. The matter of foreign exchange and of extending long-time credits to Europe are more strictly business problems. They are really differen phases of the same subject, that is, the extraordinary state of our foreign commerce, particularly in respect to Europe. This has become a factor of first importance both to men engaged in foreign trade and to those active in domestic business. Our export trade has grown materially, and many lines of business have been expanded beyond ordinary prospective domestic needs to meet increased foreign demands. Our own domestic questions of supply and prices are closely interrelated in many ways with the course of existing and prospective foreign business. The course of the foreign exchanges no longer belongs merely to the realm of technical international banking. Depreciated and widely fluctuating exchanges interfere seriously with the conduct of the nation's foreign commerce. It is generally recognized that the two chief factors in the depreciation of European exchanges are the abnormally large balances of trade in favor of the United States and the internal depreciation of the foreign currencies. The question as to what can correct conditions in exchange rates may be answered in general terms without any attempt at prophecy. The restoration of the gold standard in Europe and the return of approximate equilibrium in our trade with Europe are the chief factors tending toward correction. Only when these conditions return will our foreign trade be upon a stable basis. Stability is an essential of sound commerce, and therefore developments in connection with foreign exchange during the year can properly be classed as important to American business men. Closely connected with the foregoing is the question of financing Europe's purchases in America on a long-time credit basis. Europe cannot continue to buy in this country on a cash basis, or by means of ordinary commercial credit arrangements because of her impaired reproductivity, which has resulted in heavy trade balances against her. We are, therefore, faced with the alternative of providing Europe with the means of making purchases on a long-time credit basis or of seeing severe curtailments in our European trade. LABOR LIKE CAPITAL SHOULD BE MADE RESPONSIVE TO PUBLIC REGULATION CHARLES H. SABIN President Guaranty Trust Company of New York The labor problem looms up before us as a great menace during the coming year. We sent 3,000,000 men abroad to fight for the preservation of our democracy; are we now to surrender our democracy to less than 3,000,000 of our 110,000,000 peoples, who are organized, not into brotherhoods or federations, but into that biggest of all unionsthe United States of America? It is well to remember that the whole is greater than any of its parts. Another menace of the labor problem, quite a's vital as this one, is the epidemic of strikes, which, it has been estimated, have cost labor more than $700,000,000 and employers more than $1,200,000,000-a total of approximately $2,000,000,000! But our strikes have done worse than that, they have wasted incalculable hours of production at a time when production was never so precious, and, thereby, occasioned untold suffering to millions of people in stricken Europe. The loss in dollars may be made up; the loss in time and production can never be made up. And labor must suffer the consequences, in common with all other classes, in scarcity of goods and higher prices. A strike for proper hours, working conditions and wages, when all other means fail, may be justified. A strike for profiteering or unfair advantage, however, should be as |