*Dorchester Trust Co.

*Equitable Trust Co..

Exchange Trust Co.

Federal Trust Co..

*Fidelity Trust Co.

*Hanover Trust Co.

Deposits Feb. 28, 1920

$22,280,211

17,683,431

14,611,970

52,501

69,867

1,232,102 1,088,944

970.398

22,310,000

607,615

8,800,638

121,968

2,814,347

222,060

2,941,164

6,149,708

8,192,034

365,011 3,334,566

*Jamaica Plain Trust Co..

200,000

33,572

822,544

127 240 347 1,059,646 121 127 135

125

355

36,225

266 230 6,106,366 180 135 6,061,382 232 223,787 135

235

250 260

125 130

Chicago

Special Correspondence

An Increasingly Acute Credit Situation

The gravitation center of the growingly acute commercial credit situation has apparently shifted to this locality. The situation, bad enough as it is with the Government still plying the banks for loans to meet current deficits, has been intensified by the tying up of credit, collections and loans in commodities which the railroads have not been able to ship because of the conscienceless attitude of labor and the impairment of productive capacity with industrial, packing and other plants being tied up right and left by strike elements. In fact the average banker who is trying hard to keep down his loan commitments and to induce his customers to cut their cloth to actual needs, is deserving of commisseration.

It is evident also that the Federal Reserve Board at Washington is following the credit situation in this section with close attention as indicated by the recent advance of bankers' acceptance discount rate from 5 to 51⁄2 per cent. and advance of Liberty bond and Victory note discount rate from 5 to 6 per cent. The need for rigid curtailment of credit has been clearly shown by the persistent increase in volume of bank borrowings at the Federal Reserve Bank of Chicago. When the first advance in Federal Reserve rate was announced last November the amount of bills on hand was around $350,000,000. By the middle of March the amount had increased to $405,000,000 and on April 17th the aggregate was $481,000,000 with but a slight recession for the last week of April noted. During the same period since last November gold reserves have decreased from $373,000,000 to $303,706,000 while the amount of Federal Reserve notes, in circulation has gone up from $468,000,000 to $527,000,,000.

The demand for commercial credit is further accentuated by the requirements of interior banks for agricultural purposes. It seems as if each advance in the Reserve disccunt rate only results in sending up the current rate for money without any satiation or repressive influence on the demand. It is this situation which largely accounts for the half-hearted response of this district to the latest issues of Treasury certificates. The corrective, in the opinion of bankers, must first come through more normal functioning of labor and industry and secondly through greater economic in public expenditure and diversion of funds to tax-exempt securities.

Melvin A. Traylor, President

First National Bank of Chicago, to Increase

Capital

The directors of the First National Bank of Chicago at their regular meeting on April 27th, voted an increase of 25 per cent. from $10,000,000 to $12,500,000, in the capital stock of the bank, subject to ratification by the shareholders of the bank at a meeting which has been called for June 7th, on which date the transfer book will be closed. The new stock will be issued at par, $100 per share, to stockholders of record in proportion to their holdings, subscription to be paid in full by noon of July 1st. An increase in the stock of the First Trust and Savings Bank of 25 per cent. from $5,000,000 to $6,250,000 was voted by the directors, subject to similar approval by the shareholders. The latter will be a stock dividend, and maintains the present ratio by which each share of the National bank stock carries with it a beneficial interest of one-half share of the stock of the trust and savings bank.

The last previous increase in the capital of the First National Bank became effective April 1, 1910 when $2,000,000 was added to both capital and surplus by the sale of 20,000 shares at $200 per share. The stock of the First Trust and Savings Bank has been gradually increased from $1,000,000 with

which the bank was organized in December, 1903, through transfers from earnings, the last increase having been made in 1912.

The latest published statement, that of May 4, 1920, shows the First National Bank to have $15,477,128 in surplus and undivided profits and the First Trust and Savings Bank $7,517,677 in the same items. The total resources of the two banks at that date aggregated $414,000,000 with combined deposits of $276,303,000.

The Latest Chicago Banking Returns

While deposits of Chicago National banks as shown by their latest official returns of May 4th show a substantial decrease the loan items continue to expand. Deposits aggregate $825,628,000, a decrease of $54,601,387; loans, $742,922,090, an increase of $43,125,540, and cash, $273,613,467, a decrease of $22,962,042. Trust companies and State banks in the business loop show deposits of $678,186,557, increase, $871,427; loans, $577,802,283, increase, $27,992,701, and cash $150,740,188, a decrease of $13,723,483.

J. E. Otis, vice-president of the Central Trust Company of Illinois, has been elected a I director of the Atchison, Topeka and Santa Fe.

Wrongful Use of Trust Company Title When the newspapers of this and other cities recently carried the sensational headlines "Trust Company Head Accused of Murder" in connection with the arrest of J. Ellswirth Griffin, president of the "Insurance Trust Company" on the charge of killing his partner, it again emphasized the need of protective legislation in Illinois which shall prevent misleading employment of the title of "trust company." The so-called "Insurance Trust Company" named in connection with the recent sensational episode, has nothing in common with regularly chartered trust companies and is not authorized to conduct trust or banking business. It is similar to a number of similar finance, insurance and speculative concerns which use the "trust company" title to cloak their operations and which are organized under the general incorporation laws.

Trust companies in Chicago and Illinois have made too fine a record to have their standing impaired in the public eye even inferentially by associating alleged trust companies and the misdoings of their promoters with the bona fide article. Most States now have laws which prohibit the use of the title "trust company" only by regularly chartered trust companies and subject to trust company laws and supervision. Illinois should correct this situation at the earliest possible

moment.

American Trade Marks Abroad

The Continental and Commercial Banks of Chicago are distributing a booklet entitled "American Trade Marks Abroad." The booklet should be of particular value to manufacturers who sell their products in foreign countries. It is for the information of those engaged in and contemplating foreign trade that the booklet was issued. Copies may be had by addressing the New Business and Service Department, Continental and Commercial Banks, Chicago.

Chicago Brevities

Owing to the change in normal difference of time between New York and Chicago because of the adoption of daylight saving by New York, the local banks have moved forIward their banking hours one hour. On week days banks are open to customers from 9 a.m. to 2 p.m. and on Saturdays from 9 a.m. to 12 m. This obviates the loss of interest for one day which would otherwise result from Chicago checks arriving in New York too late to be put through the Clearing House on day of arrival.

The Union Trust Company of Chicago has adopted a profit-sharing plan under which an employee who saves $2,400 in 20 years at the rate of $10 a month is enabled to draw at the end of that period $9,075. The company sets aside each year 5 per cent. of its net income.

has opened for bu. ss in Chicago with Craig B. Hazlewood, vice-president of the Union Trust Company as president and President F. H. Rawson of the Union, as chairman of the board. Capital is $300,000.

A special meeting of the stockholders of the State Bank of Chicago has been called to approve an increase in capital stock from $1,500,000 to $2,500,000 and to distribute the increase as a stock dividend to stockholders of record June 15th. The sum of $500,000 has been transferred to surplus account, making the latter $4,500,000.

Louis K. Boysen, formerly a member of the Board of Governors of the Farm Mortgage Bankers Association of America, has been appointed manager of the Real Estate and Mortgage Department of the First Trust & Savings Bank of Chicago.

The directors of the Chicago Trust Company announce that J. Preston Burlingham has been appointed an assistant manager of the bond department. They also announce that Loring G. Calkins, formerly with Halsey, Stuart & Company, has become associated with the bond department sales organization.