Bank advertising has at least one element in common with what might be termed "general commercial advertising." In order to be effective it must be persistent and "copy" must be prepared with a distinct purpose in view. One of the foremost and successful exponents of this kind of bank advertising is the Irving National Bank of New York City. By constant reiteration in its advertisements and trademark it has become widely known throughout the length and breadth of the land as "the bill of lading bank." At the same time this distinctive title has not obscured, but has emphasized the quality of this one feature of its services both to individual depositors and out-of-town bank and trust company correspondents.

The publicity department of the Irving National Bank is not unduly restrained by the trite forms of expression, which have been for so many years the straight-jacket of bank advertising, and yet there is no lowering of its standard in the telling of its story to the public. A series of illustrated advertisements which the Irving National Bank has recently used in financial publications of the country has attracted considerable attention. The series is striking from the fact that both text and illustrations sound something of a new note in bank advertising.

The Irving's "bill of lading" service is the subject the series. and each advertisement carried a picture of some farm scene or instance of shipping activity.

PLOWING AND HARROWING

FRUIT GROWING-APPLE ORCHARD

BOAT LOAD OF COTTON

The first of these advertisements appeared about two months ago. As the publications in which the series appeared were issued from a dozen or more widely separated cities such as New York, Chicago, San Francisco and Atlanta, illustrations were selected that were typical of the different geographical sections. For instance, the advertisements that have appeared in Pacific Coast publications were illustrated with pictures of one of the industries of California, namely, that of fruit growing. The South was appealed to through illustrations of cotton growing. Corn growing and stock raising were the subjects used in the Middle West. There were special pictures of railroad terminals for advertisements in the Eastern publications.

The idea was to show bankers and shippers generally that the Irving National Bank was particularly interested in the work of the agricultural committees of the various State bankers' associations. For a number of years the Irving has been known as a specialist in handling bill of ding drafts. Anyone conversant with crop-moving operations appreciates that the bill of lading is probably the most important instrument connected with the movement of the country's crops.

The first advertisement prepared by the advertising department of the Irving Bank follows closely this line of argument, for the advertisement reads:

"The bill of lading is the most important instrument connected with the movement of the country's crops.

"This bank, as a specialist in handling bill of lading drafts, has developed its own system which facilitates shipments and expedites collections."

The campaign in its first stages was limited to this particular appeal. However, it was soon recognized that all classes of shippers

were interested in bill of lading business, and so the copy was changed accordingly. One of the last advertisements of the series illustrate this change. It reads:

"The bill of lading, which provides for the free movement and financing of farm products, may well be called an essential factor in the present movement for greater agricultural develop

ment.

"The object of this bank in developing its own system of handling bill of lading drafts has always been to be helpful to both shipper and banker." The Irving National Bank states that no little trouble was encountered in finding pictures exactly suited to the various sections of the country. The files of half a dozen of the big news and photo

Reports of New York National Banks Lower rates for money will prevail, judging from the official statements of National banks of New York City, as of Jan. 13, 1914, unless the flow of interior funds to central reserve centers is interrupted. The weekly statement of the New York Clearing House at the close of the week Jan. 17 showed the largest surplus at this period in nineteen years. Surplus reserve was increased by $16,448,000, despite a deposit increase of $45,000,000 and loan expansion of $20,000,000. The cash increase in two weeks amounted to $51,000,000.

The individual reports rendered by the National banks to the comptroller emphasize that they are in a strong position to negotiate immediate requirements in connection with the estabishment of the new monetary system. The National Park Bank reports total resources of $135,042,390, including $23,374,393 lawful money reserve. Deposits aggregate $112,184,000, with capital of $5,000,000, surplus and undivided profits of $14,419,000. The Seaboard National reports resources of $38,013,000 resources and $144,216,000 deposits. The Mechanics and Metals National Bank resources are $87,911,000 with deposits of $70,087,000. Market and Fulton National has resources of $14,352,000 and deposits of $11,331,000.

The American Exchange National Bank, New York

An excellent statement has been rendered by The American Exchange National Bank of New York City in response to the latest

graphic agencies were examined before suitable specimens were secured. The approved photographs were then reproduced in half-tone engravings in sizes suited to the several publications used and sent out to them simultaneously with the copy.

Sometimes a special "bill-lading border" was sent along with the cuts, so that when the advertisement was printed it appeared within a border or frame that further emphasized the connection of the Irving National Bank with the bill of lading business. This border consisted of a reproduction in miniature of the wellknown diamond trademark of the bank, which always appears on its stationery and in its advertisements.

official call of the Comptroller of Currency. It shows aggregate resources of $72,849,041, including $23,860,039 cash resources and balances due from National, State banks and trust companies. Deposits total $57,199,440, with capital stock of $5,000,000, surplus fund of $3,000,000 and undivided profits of $1,661,815.

The board of directors have adopted a resolution that this bank shall accept the terms and provisions of the Federal Reserve Act. The. American Exchange National is one of the few banks which is not subject to double liability of stockholders under the National Bank Act. By entering the Federal Reserve system its stockholders assume double liability.

Earnings of Irving National Bank, N. Y.

The annual report submitted by President Rollin P. Grant to the stockholders of the Irving National Bank of New York City, covering progress during the past year shows that after the usual dividend of 8 per tent. on capital of $4,000,000, amounting to $320,000, and charging off for depreciation on securities as well as meeting expenses of moving into the new Woolworth building, the amount of $255.537 was added to undivided profit account, making the total $427,369. The surplus and undivided profits now total $3,447,932. Assets immediately available are $23,867,373, available within thirty days $12,478,681, available within four months $14,429,555 and available after four months $4,664,806. Total assets are $56,507,633. The directors have decided to recommend acceptance of the provisions of the Federal Reserve Act.

As a natural consequence of the many factors of political and legislative uncertainty, the market for New York bank and trust company stocks for the past year has been a declining one in common with railroad and other security values. The general extent of this decline may, perhaps, be more readily appreciated if shown by a comparison of average prices rather than by a table showing the comparative bid and asked prices of the individual stocks.

There are in New York eight banks and eight trust companies with deposits as shown by last available statements of over fifty million dollars each. Of these sixteen institutions only one, the Union Trust Company has made any change in capitalization within the year. If we adjust the bid price of this one stock at the beginning of the year to its equivalent in new stock issued under the increased capitalization, we may arrive at a fair basis of comparison by adding together the bid prices of the stocks of these sixteen institutions and dividing the result by the number of companies to obtain an average.

Using this method, we find that the average bid price for the sixteen companies as of December 31, 1912, was 631 per cent. and that this average price had declined to 541 per cent. as of December 31, 1913. The average decline then in these stocks has been 90 points which equals 14.2 per cent. of their former market value.

Another basis of comparison might be used by ascertaining the total market value of the stocks of all these companies at the hid price at the beginning and at the end of the period. Using this method we find that the aggregate market value of the stocks of the sixteen companies as of December 31, 1912, was $575,390,000 and that the market value of the same stocks as of December 31, 1913, was $486,950,000.

Now if we compare the total capital and surplus of these institutions as shown by statements nearest to these dates, we find that these totals have increased from $335,464,100 at the end of 1912 to $341,431,000 at the end of 1913, an increase of $5,966,900.

Again by comparing total capital and surplus with aggregate market value we find that the aggregate market value December 31, 1912, $575,390,000 equals 171 per cent. of the total capital and surplus, $335,474,100 as of corresponding date, while the aggregate market value as of December 31, 1913, $486,950,000 is 142 per cent. of total capital and surplus $341,431,000 as of same date. In other words, the market premium in excess of book value for these institutions has shrunk within the year from an average of 71 per cent. to an average of 42 per cent.

It may be of interest to note that while the average decline in sixteen bank and trust company stocks for the year has amounted to 14.2 per cent. of former value as shown above, the average decline in twenty railroads as reported by the Wall Street Journal, has amounted to 11.2 per cent. of former value, and the corresponding decline in twelve representative industrials has been 10.3 per cent.

It appears then that the shrinkage in these securities has been only a little greater than that in other stocks, notwithstanding the fact that their market has had to sustain within the year the pressure of the Pujo investigation and the uncertainty as to the effect of the new banking and currency law.

The volume of transactions in these stocks has been very much smaller than usual and the decline has been characterized not so much by large amounts of stocks pressing for sale, as by the apparent utter disinclination of investors to take any interest in the purchase of such lots as did come into the market.

The final passage of the new law has at least ended the uncertainty as to what provisions it was to contain, and although these provisions call for very material changes in present methods and give such large powers to the Federal Reserve Board that much will depend upon the character and capacity of the men who are appointed to that Board, the general consensus of opinion seems to be that its effect upon the country at large will be beneficial.

New York

The most important question, however, as regards the future market for these stocks is not the effect of the new law upon the country at large but its effect upon the earning capacity of these particular institutions.

While it is probable that the first effect will be a considerable transfer to the new Federal reserve banks, when organized, of reserve balances now kept here by outof-town banks, it should be borne in mind that these balances have been kept in New York, not only because they could be counted here as a part of the required reserve of these banks, but also because the money could be used here to better advantage than elsewhere.

The flow of money to the commercial and financial centers is as sure as the flow of rivers to the sea, and while it may be possible to throw a dam across the Mississippi at Keokuk, which will develop a large amount of power that has formerly gone to waste, it is pretty safe to say that no such dam will materially reduce the amount of water that flows past New Orleans.

It is just as safe to say that so long as New York City continues to be the commercial and financial metropolis of the country, no artificial barriers wil! hold back

for any length of time the surplus funds which come here for employment.

It will follow then as a matter of course that if the new banking law is beneficial to the country at large, its ultimate effect will be beneficial to the banking business of New York.

Another very important consideration is the reduction of reserve requirements for banks in central reserve cities.

This can hardly fail to result in increased loaning capacity for the New York banks and trust companies, and as these new loans create new deposits, the added business should more than offset any losses through withdrawal of reserve balances.

The interest on these additional loans will provide a new source of revenue, and it seems probable that a profitable business in re-discounts through the Federal reserve bank will also be developed.

The general outlook for these stocks during the coming year would thus appear to be extremely favorable and the dangers to be guarded against will probably lie in the direction of a possibly too great extension of business which may bye and bye react disadvantageously rather than in any contraction through the operation of. the new law.