The Oldest Trust Company in Boston In Business Over Forty-Eight Years Capital, $1,000,000 Surplus and Profits over $3,000,000 Trust Funds over $60,000,000 MEMBER OF FEDERAL RESERVE SYSTEM " Send for our new booklet Wills and Trusts " Your clients visiting Boston may have the advantages of ARTHUR ADAMS, VICE-PRESIDENT ROGER Pierce, vice-PRESIDENT FREDERICK P. FISH, VICE-PRESIDENT FREDERICK W. ALLEN, TREASURER CHARLES E. NOTT. SECRETARY ORRIN C. HART, TRUST OFFICER JAMES R. HOOPER, PRESIDENT EDWARD B. LADD. ASSISTANT TREASURER RAYMOND MERRILL. ASSISTANT TREASURER JOHN W. PILLSBURY, ASSISTANT TREASURER LEO WM. HUEGLE, ASSISTANT SECRETARY ARTHUR F. THOMAS. ASSISTANT TRUST OFFICER SEWALL E. SWALLOW, ASSISTANT TRUST OFFICER GEORGE H. BOYNTON, MANAGER SAFE DEPOSIT VAULTS NEW ENGLAND TRUST COMPANY 135 DEVONSHIRE STREET BOSTON MASSACHUSETTS How the First National of Boston Views the Situation The First National Bank of Boston, in its current "New England Letter" appraises the general business and financial situation as follows: "The fast increasing demands for accommodation for commercial purposes have been superimposed on the existing loans on war paper, on the reduction of which no substantial progress had been made. The net result has been a decided restriction of speculation in securities-a restriction which is spreading and beginning to check speculation in commodities. General commercial activity is being maintained and in many lines, steel for example, production is being steadily increased. There are refreshing signs here and there of better results from labor per employee-hour, and the strike record has been immensely improved. "Our 1919 favorable balance of trade of over four billions evidences our huge export volume which is shrinking very slowly. The manner in which the above balance in 1919 was settled is not susceptible of accurate analysis, but the amount of credit extended by individual American exporters, with and without the assistance of banks, must have mounted to very large figures. This move ment, which is being continued, is a vital and controlling factor in improving the present exchange situation and in bringing about a gradual, not violent, readjustment of our foreign trade. The financial and trade cataclysm in Europe set for various dates has not materialized and predictions of such an event are growing less frequent. The progress of Belgium is spectacular and the recently published figures showing England's enormous increase in exports are astonishing and most reassuring as bearing on the general European situation. General commodity prices, which it had been hoped had reached their maximum, still continue to rise slightly. While some commodities have receded, the majority and the average have risen. A marked decrease in the cost of living is not yet in sight." The Old South Trust Company, which closed its doors last December as a result of non-liquid loan operations, is in process of reorganization and will be succeeded by the Hamilton Trust Company. Charles L. Burrill will succeed John B. McVey as president, the latter becoming a vice-president. Palmer E. Presbrey has been added to the board of directors of the First National Bank of Boston. Arthur R. Stubbs has been appointed an assistant cashier. Worcester Bank & Trust Company JOHN E. WHITE, President Worcester, Mass. Member Federal Reserve System HENRY P. MURRAY, Vice-President WILLIAM D. LUEY, Chairman of the Board ALVIN J. DANIELS, Treasurer Trust Department, Assets over $6,000,000 Capital, $1,250,000 The First National Bank of Boston, on the date of the last Comptroller's call reported total deposits of $176,627,000 as compared with $75,475,000 shown in November, 1914, representing a gain of 134 per cent. Albert J. Endean has been elected treasurer of the Commercial Bank and Trust Company of Bridgeport, Conn. Boston will be the next convention city for the Investment Bankers Association, the gathering to be held October 11th to 13th at the Copley-Plaza. Charters have been granted for the organization of the Victory Trust Company at Worcester, Mass.; the West Springfield Trust Company of West Springfield, Mass., and a conditional charter has been extended to the Northampton Trust Company of Northampton which is to succeed the Northampton National Bank if liquidation plans for the latter are carried through. The New Bedford Safe Deposit and Trust Company of New Bedford Mass., has increased its capital from $200,000 to $300,000. CONDITION OF BOSTON TRUST COMPANIES Furnished by L. Sherman Adams, Member of Boston Stock Exchange, Specializing in Bank, Mill and Industrials Securities 960,034 116 127 135 1,367,980 275 300 1,384,024 140 130 140 5,111,138 220 175 1,609,528 210 190 400 400 13,223 240 292 298 1,572,792 139 135 140 871,836 135 115 125 211,595 121 120 130 1,900,449 135 190 200 251 230 235 5,049,051 180 135 5,689,492 230 250 260 162,296 135 125 130 *Stocks must be offered to Directors before sales can be made elsewhere. 33,710 809,105 380,808 4,638,662 290 152,517 2,015,692 471,812 8,989,992 537,840 7,727,778 200 24,227,424 131,893,916 85,809 1,981,647 55,406 2,479,810 40,228 71,875 344,477 1,410,349 33,705,848 5,139,000 10,292,426 While money rates in New York are chiefly influenced by security market and international factors it is safe to say that the market here in Chicago affords a truer reflex of the supply and demand of money as determined by commercial requirements. Despite the successive advances in Federal Reserve rediscount rates to discourage unessential borrowing there is every evidence of ample supply of funds in this territory to meet all legitimate business interests, although at high rates which is bound to restrict the output of bills quite generally. Bankers here have no criticism to make of the Federal Reserve increase in commercial and agricultural paper rates to 6 per cent., although it will put a crimp in bank earnings. They are fully alive to the fact that any further reckless use of credit and bank borrowing would lead to a situation that would be incalculably more harmful than high rates for money. In fact bankers are counselling their customers to liquidate debts and a strict ban is being raised against credit demands for unproductive or speculative purposes. Although belated the return flow of funds from marketed farm products to this city is becoming more pronounced. As compared with the showing of other districts the Federal Reserve Bank of Chicago is in a relatively stronger position than the average, although there has been no appreciable reduction of note liabilities or bills rediscounted at the Federal Reserve bank. On the contrary, the Federal Reserve bank here shows an increase in total bills since November 14th from $356,715,000 to $385,721,000 reported on January 30th; with notes in circulation during the same period increasing from $464,896,000 to $481,109,000. Gold reserves have also declined since November from $381,397,000 to $367,447 000. The return flow of money from interior is indicated in the composite returns of National and State banks, as well as of trust companies as reported December 31, 1919, although the movement has become more pronounced since then. Aggregate deposits of National and State banks and trust companies show another increase since November 17, 1919, of $57,000,000 to the record high total of $1,842,836,000, of which the Nationals hold $891,127,000 and the trust companies and State banks $951,208,000. Loans and discounts in creased from $1,309,322,000 to $1,367,778,000, while cash resources increased from $515,649,000 to $555,551,000. Agreement on 24 Per Cent. on Balances Clearing House institutions and banks generally are observing the policy defined at the conference of Clearing House representatives from thirty leading cities held in Chicago on January 23d, at which it was decided that no rate in excess of 24 per cent. be paid on net and average balances. This action is in ac cord with the expressed wishes of the Federal Reserve Board in developing its statutory power to regulate discount rates without reference to Clearing House regulations governing payment of interest on balances or deposits. The agreement arrived at the Chicago conference was foreshadowed by the ruling previously adopted by the New York Clearing House Association restricting interest on balances to 24 per cent. regardless of the Federal Reserve discount rate. Five Chicago banks mentioned as contemplating merging of interests, include the Standard Trust & Savings Bank, Century Trust & Savings Bank, Great Lakes Trust Company, Chicago Trust Company and the Union Bank of Chicago. Developed through the growth and experience of more than half a century The First National Bank of Chicago James B. Forgan, Chairman of the Board - Frank O. Wetmore, President and the First Trust and Savings. Bank James B. Forgan, Chairman of the Board - Melvin A. Traylor, President offer a complete financial service, organized and maintained at a marked degree of efficiency. Calls and correspondence are invited relative to the application of this service to local, national and to international requirements. Combined resources over $300,000,000 Northern Trust Company Make Changes Fred A. Cuscaden, formerly vice-president of the Merchants National Bank of Omaha, was elected a vice-president of the Northern Trust Company of Chicago at a recent meeting of directors. Announcement was also made of the retirement of Martin Lindsay as vice-president in charge of the bond department to enter the firm of Rutter, Lindsay & Company, which was formed February 1st to engage in investment and financial business. A. Watson Armour, vice-president of Armour & Company was elected a director, succeeding Ernest A. Hamill, who retired. Mr. Arthur Heurtley, who has been secretary of the Northern Trust Company for 28 years, has retired on a pension, owing to ill health. Mr. Heurtley was one of the founders of the Trust Company Section of the American Bankers' Association and acted as its first secretary. He has an exceptional record as an authority on fiduciary matters and his personality endeared him to all with whom he came in contact during his active and long association with the Northern Trust Company. He is succeeded as secretary of the company by Mr. Harold H. Rockwell, formerly an assistant secretary. Thomas F. Ford and David Johnstone were elected assistant cashiers of the Northern Trust Company and James A. Russell, formerly chief clerk of the trust department, was elected an assistant secretary. Federal Land Banks Losing Popularity According to a recent bulletin issued by the Farm Mortgage Bankers' Association the Federal Land banks are doing less business than formerly. Six of the twelve Federal Land banks did less business last year than the year before. For the year ending September 30, 1919, the Federal Land Bank of Spokane, Washington, shows the largest falling off in business as compared with the previous year, with a decrease of $3,420,339. St. Paul, Minn., comes second, with a decrease in loans of $2,494,400. Berkeley, Cal., shows a reduction of $1,296,400, Wichita, Kan., $1,247,922, Springfield, Mass., $261,430 and New Orleans, La., $77,420. These six banks show an aggregate decrease of $8,797,911 when compared with the previous year ending September 30, 1918. Lucius Teter, president of the Chicago Trust Company, has been elected treasurer of the Chicago Athletic Club. Empire Gas and Fuel Company 8% Preferred Stock Backed by a large equities in Sinking Fund Provision, Circular TM-2 and detailed in- Henry L. Doherty & Co. BOND DEPARTMENT 60 Wall Street, New York Solomon A. Smith Elected President Chicago Clearing House Ass'n Mr. Solomon A. Smith, president of the Northern Trust Company, was elected president of the Chicago Clearing House Association, at the last annual meeting. William A. Tilden, president of the Fort Dearborn National Bank was elected vice-president. Gen. Charles G. Dawes, president of the Central Trust Company, and John A. Lynch, president of the National Bank of the Republic, were elected members of the Clearing House committee, succeeding John J. Mitchell and Ernest A. Hamill, and James B. Forgan, George M. Reynolds and E. D. Hulbert were re-elected members of the committee. The Continental and Commercial National Bank shows an increase of 112.3 per cent. in deposits since November, 1914, since which time deposits have increased from $155,750,000 to $330,733,000. To this total should be added the $69,561,000 deposits of the affiliated Continental and Commercial Trust and Savings Bank which also experienced an increase of 117.5 per cent. since November, 1914. The People's Trust and Savings Bank of Chicago reports net earnings during the past year of $140,000. SOLOMON A. SMITH Elected President Chicago Clearing House Association |