Chicago

Special Correspondence

The Farmer and the Banker

One of the greatest drawbacks to agricultural development is the disparity in discount and loan rates. The excessive rates of interest which the farmer is called upon to pay for accommodation, especially in

more remote communities, not only works as a handicap, but is one of the principal causes for the marked movement of Americans to the farm lands of Canada. Last year 222,000 American citizens left this country to settle and till the soil in Canada. The average amount of money carried to western Canada by these Americans was $5.500 per capita. The movement is not a spasmodic one but seems to be due to economic conditions and to the attractive inducements offered by the enterprising railroad companies which traverse western Canadian, provinces. It is estimated that at least 2,000 farmers sell out in this country every year and migrate to Canada. As against this exodus of former citizens, it is estimated that 2,000,000 immigrants have settled and engaged in agricultural pursuits in the northwestern States during the past ten years. These new settlers have opened up 114,000 farms and increased the acreage in the northwestern States alone by 23,000,000 acres. According to the census the rural population of this country, outside of incorporated towns with inhabitants of 2,500 or more, increased only 11.4 per cent. from 1900 to 19IO. But during this same period the total value of farm land more than doubled. According to the same authority, there are now over 6,000,000 farms with an acreage of nearly 900,000,000 which is equal tc 46 per cent. of the total land area of the country. The total value of farm property amounts to $40,000,000,000.

Although these figures give ample basis for optimism, it cannot be doubted that the time has arrived in the agricultural development of this country when the relation of the farmer to the banker and the application of scientific methods to agricultural processes should receive proper consideration. The state bankers associations of the agricultural sections are keenly alive to this condition as shown by the appointment of special committees to facilitate relations with farmers and the introduction of legislative bills providing for government establishment of schools teaching scientific meth

ods and the adoption of special agricultural courses in the public schools. The banking interests have already accomplished wonderful results in this direction. The Execu

tive Council of the American Bankers' Association at the recent Briarcliff meeting adopted suitable resolutions, calling upon all bankers associations to adopt the plans which have been so ably developed in such states as Minnesota and Illinois. In addition to this, the American Bankers' Association has assigned to two members of the Council a commission to visit continental European countries and report on the systems of mortgage banks and other institutions which furnish accommodation on most approved lines to agricultural interests.

But it is obvious that there can be no genuine or lasting improvement until the National monetary laws are reformed; until proper channels of discount and uniform rates are established. If for no other reason than that of supplying relief to farming interests, the issue of National currency and banking reform should be urged as the most important problem confronting the American people.

Crop and Business Conditions More
Reassuring

Beyond doubt the most important factor in the general business situation of the country will be the crop results. It is the unanimous sentiment that if the yield is up to expectations the negative effects of a presidential campaign will be largely discounted. According to the government report, the. Spring wheat acreage is 19,201,000 compared with 20,757,000 acres last year; condition 95.8 per cent. normal compared with 94.6 per cent. last year with indicated yield per acre 13.8 bushels compared with 9.4 bushels last year, and 13.4 the five year average. The winter wheat acreage is 25.744,000 compared with 29,162,000 acres last year; condition 74.3 of a normal compared with 80.4 per cent. last year and 80.9 per cent. the ten year average. With continued propitious weather conditions, the prospects are for excellent acreage yields.

Judging from the bank clearings, the business of the country is steadily improving. The clearings for May, for example, reached the highest total ever recorded in the history of this city, amounting to $1,322,635.932, compared with $1,314.212,040 in March, 1910, the next highest monthly aggregate. The total clearings for the first five months of the year amounted to $6,340,350,306, an in

crease of $617,426,138, compared with the clearings for the same period last year. During the five months of this year Chicago banks shipped nearly $62,000,000 currency and received $42,600,000.

Standard Trust & Savings Bank

Excellent growth has attended the Standard Trust & Savings Bank of this city which commenced business September 6, 1910. Deposits amounted to $1,411,604 in November, 1910, to $4,293, 660 in June, 1911. and $4,437,210 in February, 1912. The latest official report shows total deposits of $5,033,093, total resources of $6,378,275, capital $1,000,000, surplus and undivided profits $345,000. Charles S. Castle is president, William F. Van Buskirk, vice-president, James M. Miles, cashier and Henry C. Stevens, assistant cashier.

Bank and Trust Company Stockholders

J. Ogden Armour is the largest individual bank and trust company stockholder in the city. His holdings include 9,350 shares of the Continental and Commercial National Bank, 1,286 shares Central Trust Company of Illinois, 625 Illinois Trust & Savings

Bank and 150 Northern Trust Company. The Illinois Life Insurance Company owns 2,000 shares of Continental and Commercial National Bank stock and 2,633 shares of Central Trust Company of Illinois.

Chicago Brevities

The Harris Trust & Savings Bank has purchased from the town of Council Bluffs, Iowa, school district bonds in the sum of $82,000. These bonds are tax exempt in Iowa and are to be used for refunding purposes.

The board of directors of the Sheridan Trust & Savings Bank have declared a dividend of 6 per cent per annum on the capital stock.

The State Bank of Chicago has leased the banking floor of the new Otis building at La Salle and Madison streets which will provide commodious quarters. The State Bank was organized thirty years ago and has total deposits of $26,025,300. L. A. Goddard is president and H. A. Haughan, vicepresident.

The Mercantile Trust & Savings Bank has cpened for business. F. H. Rawson of the Union Trust Company is president and H. A. Wheeler, vice-president.

St. Louis

Special Correspondence

Diversified Trust Company Services

The oft-repeated statement that the trust company adapts itself most readily to the fiscal and fiduciary requirements of a community is corroborated by the varied services performed by the trust companies of this city. The influence and activities of St. Louis trust companies are not confined to local jurisdiction, but cover the entire Southwest. In the trust departments there are appointments which come from patrons who reside in distant or adjacent States Large corporations transact their business. requiring trust relations with local institutions. Extensive investment business is conducted through the bond and real estate loan departments.

It

Whereas the somewhat misleading term is sometimes applied that the modern trust company is virtually a "department store of finance" the fact is that the many facilities extended by the companies of St. Louis are logically and properly evolved from fiduciary service. Such expansion of functions is therefore both legitimate and safe. also signifies that the instrumentality of the trust company is essential in all important financial and corporate undertakings. Whenever a St. Louis trust company of the type and standing of the Mississippi Valiey Trust Company, Mercantile Trust Company or St. Louis Union Trust Company allows its name to be used in connection with trust services rendered corporations and investment propositions, such designation is an assurance to investors and the public which is both a warrant of safety and of correct methods.

The trust companies of this city have attained, moreover, an enviable record in the discharge of corporate fiduciary obligations. They rigidly exclude all enterprises which are purely speculative in character or do not offer the proper sureties. This policy governs all the departments of the trust companies, and it is therefore a foregone conclusion that St. Louis trust companies are destined to command an ever increasing sphere of usefulness.

Local bank clearings show a steady gain. Banks and trust companies are adhering to a loan policy which will place them in a strong position to meet fall crop moving requirements.

First Mortgage Real Estate Notes

The success which has attended the conservative and at the same time distinctive policy of the Mercantile Trust Company of St. Louis in the sale of securities based on real estate has commanded general attention among investors and financial institutions. The plan is, moreover, being emulated by an ever increasing number of trust companies, especially in the Southwest, which act as trustee of the mortgage when the loan is made. Formerly, the participation in such gilt-edged securities was confined to estates, corporations and large in

\estors.

The plan first inaugurated by the Mercantile Trust Company, through its real estate loan department, is so devised as to enable small investors to purchase participating notes. The manner in which the Mercantile Trust Company issues these first mortgage real estate notes is described as follows: For example, a loan of $100,000 is applied for, and the security offered is a prominent downtown corner worth, on a conservative basis, $200,000. This loan we secure by First Mortgage on the property, and instead of making one note for $100,000 due in ten years we make 200 notes of $500 cach. These notes may, therefore, be sold to the individual who desires to invest $50,000, or to the person who desires to invest only $500 or $1,000. Before these loans are made the property is carefully appraised by the officers of the Mercantile Trust Company, who have had long experience in this business. The loan is then submitted to the Executive Committee of the Mercantile Trust Company, consisting of nine men of wide experience, and is in turn approved by the entire Board of Directors of twentyfour men before the loan is offered our clients. When these loans are made the Mercantile Trust Company becomes Trustee under the Mortgage, and all insurance policies are made payable to the Company. All papers pertaining to the loan are examined and approved by The Mercantile Trust Company's Legal Department. As a rule, these notes are in the form of a serial loan; that is to say, a specific number of these notes are made payable each year, so that the security becomes greater each year because of the annual payments on the principal. Each of these notes is accompanied by semi-annual interest coupons, which may be collected through any Bank, or may be collected at the Mercantile Trust Company without expense to the investor.

Frank O. Watts of Nashville Elected Vice

President of Third National Bank

Mr. Frank O. Watts, president of the First National Bank of Nashville, Tennessee, has accepted the invitation to become vice-president of the Third National Bank of St. Louis. Mr. Watts has a National reputation as a conservative banker. His removal to this city is looked upon as an important addition to the financial strength of St. Louis.

The Third National Bank of St. Louis has paid its regular quarterly dividend of four per cent. Following the payment of this dividend, the bank has prepared a circular announcing that because of temporary dullness in business, it is for the best interests of the bank to reduce the next dividend to 3 per cent. The prospects of the bank were never better, and this reduc-. tion is merely for the purpose of greater advancement.

Trust Company Wins

On June 13, 1912, the Camden Safe Deposit & Trust Company of New Jersey made a return showing capital stock, accumulated. surplus and undivided profits of $1,172.470. It claimed a total deduction of $1,057.248. The State board of assessors fixed the assessment at $505,750 and this assessment was sustained by the county board. The State board of equalization of taxes has decided the appeal in favor of the trust company. Undoubtedly the case will be taken to the Supreme Court on certiorari proceedings.

Miscellaneous

The Hoboken Trust Company of Hoboken, New Jersey, recently observed its tenth anniversary. It began business July 1, 1902, with total assets of $163,683, and according to its last published statement now has $1,931,266.

It is understood that Governor Aram J.

tions

A permit to do business in Texas has been granted to the Mortgage Trust Company of St. Louis, of which Mr. Tom W. Bennett is president. This large and active company will carry on business in Dallas, Fort

Worth, Waco, San Antonio, Houston and El Paso.

The Fletcher Savings & Trust Company has been organized in Indianapolis, Indiana, and absorbs the business of the Marion and German-American Trust Companies. The capital of the new company is $1,500,000.

office in connection with his election as president of the Union Trust Company of Providence, R. I.

The Central Bank & Trust Company of Atlanta, Georgia, has moved its offices into handsome quarters in the Candler Building. One of the features in the equipment of the new building is an electric dumb waiter by which $500.000 can be sent from the vaults to the cashier's window in ten seconds by the pressing of an electric button.

The Hibernia Bank & Trust Company paid 8 per cent. dividend on $1,000,000 capital.

Baltimore

Special Correspondence

Control of Seaboard Air Line Transferred

Through the acquisition of blocks of co.000 shares of preferred and 120,000 shares of common stock, the control and management of the Seaboard Air Line has been transferred from Ryan-Coolidge interests to a syndicate headed by S. Davies Warfield, president of the Continental Trust Company of this city. What is of particular interest here is that after October 1st the meetings of the board of directors will be held in Baltimore instead of New York, signifying that the general management of the extensive railway property will be centered in this city. The stock which represents the controlling interest will be trusteed for a period of five years and Mr. Warfield will act as chairman of the managers. With Mr. Warfield in the government of the affairs of the road are associated: Albert H. Wiggin. president of the Chase National Bank of New York; Benjamin Strong, Jr., vicepresident of the Bankers' Trust Company of New York; Charles S. Sabin, vice-president of the Guaranty Trust Company of New York; Robert Walker, former chairman of the board of the Rock Island Company; Samuel L. Fuller of the banking firm of Kissel. Kinnicutt & Company, and Frank A. Vanderlip, president of the National City Bank of New York City.

It is practically certain that the new controlling interests will inaugurate a vigorous policy of improvements and extensions in the Seaboard System. It will mean the practical elimination of Thomas F. Ryan from the management.

Trust Company Growth in the South

Trust companies are springing up so rapidly in the South that it is almost impossible to keep track of their number. The Guarantee Trust Company, with a capital of $2,000,000 is being organized in Fort Worth, Texas, with Allan R. Sheffer as the leading spirit. A half million dollar trust company has been organized in Corpus Christi, Texas, and will be known as the Nueces Trust Company. In Chattanooga the Tennessee Trust Company has filed for probate an application for a charter of incorporation with a capital stock of $10.000. We predict for these companies a prosperous future for the South is rapidly awakening to all of its possibilities and the trust company is in the vanguard of progress.

Death of General John Gill

General John Gill, former president of the Mercantile Trust & Deposit Company and chairman of its executive committee, died July 2, 1912. General Gill retired more than two years ago from active participation in the affairs of the trust company and went abroad to regain his health.

His death removes one of the most conspicuous figures in Baltimore's financial life. He had been identified with the welfare of this city since the close of the Civil War and was interested in every movement for the advancement of the South.

Baltimore Brevities

The Chatham Land & Hotel Company of Savannah, Georgia, has executed a deed to the Baltimore Trust Company on suburban real estate holdings to secure an issue of $500,000 six per cent. bonds maturing June J, 1932.

The governing committee of the Baltimore Stock Exchange contemplates a change in its by-laws providing that charges for buying and selling bonds and stocks shall be maintained on a basis of one-fourth of one per cent.

The Title Guarantee & Trust Company announces plans for a new seven-story combined bank and office building.

Mr. George C. Morrison has been elected president of the Title Guarantee & Trust Company, to succeed Mr. Edgar G. Miller who has left for an extended trip abroad

At a recent meeting of the directors of the Fidelity Trust Company, Mr. Howard Bruce, vice-president and general manager of the Bartlett Hayward Company, was elected a director. Mr. Bruce has long been connected with the leading financial institutions in Baltimore and is primarily interested in the activities of public service corporations.

The Baltimore Trust Company has declared a quarterly dividend of 5 per cent. At a recent meeting of the directors, Mr. H. Gale Tirpin was elected assistant treasurer to succeed W. D. Focke.

The Mercantile Trust & Deposit Company declared a regular semi-annual dividend of 6 per cent.. payable July 29. The annual report submitted by President A. H. S. Post indicates that the company is maintaining its high standard of efficiency.