Joseph Boardman Martindale

The banking fraternity of New York has lost one of its ablest and most distinguished members in the recent death of Mr. Joseph Boardman Martindale, president of the Chemical National Bank. He succumbed to an attack of heart disease in his fifty-fifth year and leaves a widow and two daughters.

Mr. Martindale devoted nearly his whole life to the Chemical National Bank, with which he became associated soon after finishing his education at a private academy at Medina, N. Y. He was born in Brooklyn, July 10, 1862, and from boyhood showed a special aptitude and desire to engage in the banking business. By faithful application to his duties Mr. Martindale was promoted through various clerkships until he became cashier. After holding this position for several years he was made a vicepresident and when the former president, William H. Porter, resigned to become a partner in the banking firm of J. P. Morgan & Company, Mr. Martindale was elected his successor president. He performed most valuable services as receiver of the large wholesale drygoods house of H. B. Claflin & Company, sharing his work as receiver with Mr. Frederic A. Juilliard.

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Mr. Martindale was a director of the Bankers Trust Company of New York, and the United States Life Insurance Company. He was also a member of the New York Clearing House Committee.

It will be recalled that the Chemical National Bank recently announced its departure from the policy of non-payment of interest on deposits and bank balances to which it had adhered for nearly one hundred years. It was the last National bank in New York to yield to the practice of paying interest and its recent course was actuated largely by the necessity of paying interest on Government deposits.

A synopsis of the changes made in the Federal Reserve Act by the amendments which were approved by the President, June 21st, is given in a booklet just issued by the Guaranty Trust Company of New York.

With the June issue the Mettco Meteor, the publication issued by the Metropolitan Trust Company of New York enters its second year. It began with four pages and a circulation of 150 and has grown to twelve and sixteen pages with a circulation of 10,000 copies. Since this publication was started it has recorded many important events in connection with the activities of the Metropolitan Trust Company, including the rapid growth of the main office and the Fifth Avenue branch; the erection and opening of the fine club house for employees at Howard Beach Estates; the removal of the main office to elegant new quarters at 60 Wall Street.

James N. Wallace, president of the Central Trust Company, has been elected a director of the Rock Island Railroad and chairman of the finance committee.

John A. Hopper and George C. Hoffman have been elected assistant treasurers of the United States Mortgage and Trust Company.

The Citizens Commercial Trust Company of Buffalo and the Bank of Buffalo have taken over the entire issue of new 41⁄2 per cent. city of Buffalo bonds aggregating $510,000.

The Citizens Commercial Trust Company of Buffalo has added another link to its chain of branch banks in the opening this week of the west side branch at 74 Grant street.

Of Reports of the Trust Companies of New York City at the close of business on the 20th day of June, 1917, as shown by their official statements to the Superintendent of Banks.

Due from Trust Cos., Banks and Bankers.

Legal

Tender

by

BOR OF MANHATTAN.

Public

Private

and Mortgages

Estate

Other

Purchased, Not

Fixtures. Owned.

Secured.

Broadway Trust Co

2,747,000 1,242,800

107,300

1,093,800

362,600 5,606,200

12,680,800

3,479,000

1,459,700

2,457,800

Central Trust Co.

11,011,500

20,519,300

1,403,500

111,600

184,900

61,405,600

54,135,400

34,397,100

8,856,400

12,872,900

153,100

Columbia Trust Co

3,371,400

7,704,800

5,476,100

Commercial Trust Co.

643,200

131,000

515,700

3,137,300 88,000

1,201,200

37,802,800

22,406,700

7,786,200

1,879 800

5,789,800

471,000

1,188,800

2,073,500

245,700

74,500

271,600

12,000

729,800 439,200 e 2,375.900

3,448,000 d 7,577,400 49,600

487,600 1,290,700

46,700

$200,067,800 $281,178,300 $39,298,400 $64,287,100 $9,680,000 $946,047,800 $360,044,100 $179,195,400 $66,254,500 $143,428,600 $12,738,600 $57,171,500 $224,097,300 160,502,900 299,762,700 39,406,500 59,325,400 8,759,900 875,691,300 328,370,600 249,698,600 66,254,500 159,460,400 11,616,500 53,686,400 231,649,000 Increase. Decrease. Decrease. Increase. Increase. Increase. Increase. Decrease. $39,564,900 $18,584,400 $108,100 $4,961,700 $920,100 $70,356,500 $31,673,500 $70,503,200

Customers' liability on acceptances: e. $1,200,000; f, $1,018,600; 2. $872,300.

NOTES PERTAINING TO RESOURCES

a. $22,425,700; c, $40,229,000; d, $2,792,700; e, $1.125.000; f. $20,859,600; 2. 87,478,700; h, $876,500, Foreign exchange: c. 882,419,700; d, $4,529,600; f, $20-858.500 Accounts macalıkl

Decrease. Increase. Increase. Decrease. $16,031,800 $1,122,100 $3,485,100 $7,551,700

Accrued interest: a, $2,060,600; b. $1,010,500;

1,731,200 1,496,800 114,600 1,816,800 10,123,300 1,707,200 2,052,900 93,800 2,023,000 5,223,300 1,994,400 8,093,000 2,669,500 1,899,000 112,600

1,199,300

1,686,000

616,500

1,145,600 h

1,081,300

86,000

690,700

99,800

37,600

88,900

1,576,700

331,300

106,900

202,000

812,400

120,000

325,100

117,500

1,966,700

232,800 1,332,000

330,500

Mortgage trust bonds: b, $7,977,500. Accrued interest: a, $2,276,200; c, $3,585,400; e, $2,171,000; f, $2,222,900. Accrued dividends: c, $1,066,700. Bills payable: d, $3,000,000. Annuities: g, $2,407,600.

Increase. $17 430,900

2,148,807,400 Increase. $32,184,900

102,240,100 Decrease. $7,755,300

29,309,600

2,544,184,700

Increase.

$39,304,700

Philadelphia

Special Correspondence

Demonstration of Financial Resourcefulness in Philadelphia

Fiscal experiences, in connection with the Liberty Loan operation during the past month, have revealed as perhaps never before, the inherent strength and basic soundness of the banking position in Philadelphia. Indeed, the test has inspired the responsible executives with a greater feeling of confidence as to their ability to safely meet any strain that the war may impose in the future. There is no disposition to underestimate the problems and the severe task which especially confronts bankers in view of further large war loans. The machinery, however, has been provided for such future issues and meanwhile the work of educating the people to take up Government bonds is steadily going on.

Naturally there have been some definite surface indications of the strain placed upon banks and trust companies. Some readjustment of the money market and of credits was to be expected with Liberty Loan subscriptions amounting in this district to $232,000,000 as against the original Treasury allotment of $140,000,000. Time and call money rates advanced to the highest levels since 1914 under the combined influence of Liberty Loan subscription payments, half-yearly corporate dividend and interest disbursements. Philadelphia banks were also called upon to trim their sails in con-nection with the transfer of final legal reserves of member banks to the Federal Reserve bank in accordance with recent amendments. These changes in reserve requirements are not expected to materially reduce the volume of funds maintained by country banks with their city correspondents, particularly in view of the valuable services for interior banks provided by Philadelphia national banks. It is also of interest to note that despite the temporary scarcity of loanable funds there has been no heavy calling of loans and those activities, associated with the production of war materials, have not been denied accommodation.

Philadelphia Bank Earnings and Deposits With higher rates for commercial paper and call loans the National banks of Philadelphia look forward to a period of more remunerative employment of funds. It is significant, in view of the expected drain upon the banks, that their deposits continue in many instances to show gains. The June 20th official statements likewise reveal most satisfactory earnings for the past year. Red Cross dividends do not figure

in the official statements which were compiled subsequent to their declaration. As compared with the nearest corresponding date last year the Philadelphia National led the list, in respect to earnings, with $682,686; the Girard National second with $647,007; the Fourth Street National third with $620,434. Other individual statements showed the Franklin National with earnings of $439,063; First National $381,084; Farmers & Mechanics National with $187,770. Compared with the corresponding twelve months, 1915-1916, the National bank earnings were in most cases nearly three times over that period. From the standpoint of deposits the latest official returns also revealed some marked gains.

Trust Company Officers to leave for France

Directors of the Commercial Trust Company have granted a leave of absence to Samuel A. Crozer, secretary, and Henry C. Gibson, assistant secretary, both of whom will shortly leave for France, having enlisted in the field service of the American Ambulance Corps. The board elected Mark Willcox assistant secretary, in addition to his office of assistant treasurer, and also elected Charles P. Stokes assistant secretary and assistant treasurer.

DEPOSITS $17,700,000.00

Important Legislation Affecting Pennsylvania Trust Companies

Important legislation has been passed by the Pennsylvania legislature broadening the powers of the trust companies of that State. The bill empowering trust companies and State banks to accept drafts and issue letters of credit has been passed by both houses and approved by the Governor. The Legislature has also passed the bill amending the present law covering trust company reserves which also authorizes trust companies to deposit their gold with Federal Reserve banks, receiving in exchange Federal Reserve notes. Another important bill passed is that which provides for the appointment of a commission to codify and revise the State laws relating to banks, trust companies and private bankers. On July 17th Governor Brumbaugh approved the Sproul bill providing that State banks and trust companies shall have the power to subscribe to capital stock and become members of the Federal Reserve bank.

There is considerable disappointment because of the failure of the two joint resolutions proposing amendments to the Constitution. The first of these resolutions which failed to pass was intended to ultimately widen the scope of trust company investments which are now so restricted as to create unnecessary hardships and curtail income from trust holdings. The other proposed constitutional amendment was designed to permit trust companies to directly discount paper although many of them now purchase paper. It is believed, however, that through the appointment of a commission specific authority will be obtained to purchase commercial paper. The opinion also prevails that with the authority to accept drafts the position of the trust companies is strengthened in regard to paper so that they can proceed to purchase paper without opposition from the Banking Department. It is not thought likely that the Department could reconcile opposition to purchase of paper by trust companies in view of the express authority to accept drafts. The bill to permit National banks to act as trustees, etc., failed to pass.

ORGANIZED 1807

Generous Red Cross Contributions by Philadelphia Banks and Trust Companies Philadelphia National banks and trust companies responded most liberally to the appeal for funds for the American Red Cross. These contributions were largely in the form of special Red Cross dividends from earnings with recommendation to stockholders that the checks be used for that purpose. Among the larger contributors were: Girard Trust Company dividend of 2 per cent.; Pennsylvania Company for Insurances on Lives and Granting Annuities 1 per cent.; Commercial Trust Company, 1 per cent.; Fidelity Trust Company, 14 per cent. (equal to $50,000); Philadelphia National Bank, 11⁄2 per cent. ($22,500); Girard National Bank, 1 per cent. ($20,000); Land Title & Trust Company, $40,000; Fourth Street National, $15,000; Franklin National Bank dividend of 2 per cent. ($20,000); Real Estate Title & Trust Company, $5,000.

The above is only a partial list of bank and trust company contributions, practically all of the local institutions being represented in the list. Large sums were also provided by members of the Philadelphia Stock Exchange. The directors of the Provident Life and Trust Company, in addition to declaring a special 2 per cent. Red Cross dividend on the capital of $1,000,000, made arrangements by which members of the Society of Friends and others in sympathy with their objections to war may contribute to the Red Cross funds through the American Friends' Service Committee, to be applied to the Red Cross units being established by Friends for reconstructive work in France as an organic part of Red Cross work.

The Logan Trust Company has adopted the system of having its tellers receive and make payments at the same windows.

At a special meeting of the stockholders of the Pennsylvania Sugar Company the plan to increase the capital of the company from $2,600,-'000 to $5,000,000 was approved.