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son, and who rendered invaluable work at the economic conference in Paris following the signing of the Armistice. Under Mr. Davis' administration the Trust Company of Cuba gained steadily in volume of business and prestige, serving to cultivate also closer financial relations between Cuba and the United States. Following Mr. Davis' retirement to accept appointment at Washington, Mr. 0. A. Hornsby was elected president, who was also one of the original organizers of the company.

The Trust Company of Cuba occupies one of the most attractive and substantial banking homes in Havana. The design is of the Greek Ionic style and the construction fireproof throughout. A feature of the company's home building is the vault equipment which is one of the best and most complete in Cuba.

In assuming his new duties as president, Mr. Muirhead has the best wishes of the trust company fraternity.

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New capital issues in England during the first five months of this year, exclusive of British Government loans for national purposes, aggregated £146,157,136 as compared with £90,301,727 for the same period last year, according to statistics compiled by the London Joint City and Midland Bank, Limited.





A new and more-complete-than-ever new business program for trust companies. It comprises Eighteen Monthly Folders, prepared to meet the requirements of a carefully devised schedule, A masterly Master Booklet, an indispensable feature in any trust campaign, A series of Illustrated Newspaper Advertisements, their texts “tying up” with the Folders and the Master Booklet.

Clients introducing this plan will be reminded of our slogan “After we sell we serve,” through the faithful attendance upon their wants by our efficient Service Department; and also through the monthly visits of our Service Bulletin, available to clients only. Our district sales representatives will have this service for demonstration after August first. Appointment may be made through our Executive and Sales offices in St. Paul.


Business Building for
Banks and Trust Companies

Executive and General Sales Offices

District Offices


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Cashier, Ithaca Trust Company, Ithaca, New York


to make this paper brief, I start with the short, bald statement that the idea

herein presented is, I think, one of the best and cheapest methods yet devised for getting new depositors for a trust company.

This statement is not based on mere the. ory, but upon proved practice during three Fears in the city of Ithaca. Ithaca has 17,000 inhabitants. Yet the development of the plan there proves that it is workable in any city of whatever size-larger or smaller.

The plan, in brief, is the issuance of a baby pass-book, and no novelty is claimed for this idea. The new part of it is the issuance of the pass-book, with a one dollar deposit, within a few days, at most, of the birth of every baby in the town. Note that every baby is included regardless of race, creed, sex, color or nationality. The mother, in the hospital or at home, receives along with the flowers and congratulations from intimate friends, congratulatory letter from the Ithaca Trust Company, enclosing a special pass-book bearing the baby's name in which is shown a deposit dated the day of the baby's birth, and in the amount of one dollar. So it can be fairly said that while many babies in Ithaca may be born without the proverbial silver spoon, not one can enter the world penniless.


little more than three years ago; so it has had time to prove itself. Since then you might suppose that at least one hundred accounts a year would accrue from the plan. Ithaca's birthrate is not especially high, and the place has been described as a city of old folks. But without going deeply into the question of local birth rate, it must be said that the average Ithaca family seems to average one baby every four years. The bank has opened 880 of these baby accounts since that February day three years ago when the plan was started.

The total cost of opening these accounts, including the initial dollar furnished by the trust company has been $1,057.20, of which the deposits made $880; pass-books, $70,40 ; postage, $52.80; stationery, $10.00, and clerk hire, $44.00. The average cost of each account including the original dollar, has been $1.20. Of course, some accounts have been closed because of deaths or removals of the families from Ithaca ; these have amounted to 44, or only five per cent. In other words, 836 of these accounts, or 95 per cent., are still growing.

Growth of Accounts That these accounts have grown is indicated by the fact that the deposits are more than ten times as large as they were originally or, put in another way, the original dollar has become, on the average, $11.76, and all accounts aggregate $9,831.36. The largest account is $275 and nine accounts have gone to more than $100 in the three years.

Several questions have uccurred to most of you as I have given these figures. One is : Against what does the trust company charge the original dollar deposit? The answer is: Against advertising. And it is the cheapest advertising that the bank obtains, with the additional advantage that there is an absolute and undeniable return. Newspaper and magazine advertising for banks may have

The Financial Side As men used to dealing in facts and figures, you are primarily interested in the financial aspects of the plàn; and also, because money affairs touch life in its most personal phases, you will be fascinated with the human interests involved. A few of these will be presented after you have had the dry statistics.

The plan was started in the Ithaca Trust Company on the first of February, 1919, or a

(Address delivered June 19, 1922. before Trust Company Section, New York State Bankers Association)

a dubious value; there is no sure way to hospital where the pass-book came, remarked check the returns, nor to tell how much-if that any bank that was as thoughtful and any-new business is brought in by such up-and-coming as the one that sent the book advertising, nor how much such announce and the letter of congratulations to the ments cost for each new account. Letters mother, could get her savings. And it got to adults, whose banking habits are formed, them, and they amounted to a tidy little sum. do not produce much in tangible results. We In another case a mother changed her acknow in Ithaca that we have been asked to count to the trust company because she was pay solicitors three dollars for each new ac making periodic deposits for the baby, and count brought in, and some of these accounts it was more convenient to do ali her banking are of doubtful worth and of undependable in one place. duration.

The Human Interest Element But with the baby accounts the growth

One day a small Miss, about five years of of new deposits is sure. If the average

age, came into the bank with a complaint. of 260 or more accounts a year keeps up,

Her eyes were below the level of the teller's there will be 2,600 at the end of the first

window, but she lisped out her grievance to ten years after the plan started, and 5,200

the effect that her little brother Wallie, who in twenty years. The limitations of growth

was only six months old, had a bank account, are largely the limitations of the growth of

and she couldn't see why she, who was ever the city. Of course, it would be a fallacy

so much older, shouldn't have one also. It to assume that the rate of increase would

was only a matter of a few moments to send keep up, because on an average of 20 years

her away happy with a pass-book, showing the original account would be likely to be

a dollar deposit, a special letter to her closed out. This is because the account in

mother, and a card for the mother to sign the name of the child, controllable in the

and return. name of the mother, is urged as a heritage

These and others represent specific cases account to be available when the child is of

that could be multiplied at length. The idea age--18 years in the case of a girl, and 21

makes talk wherever it is mentioned, because years for boys, with the idea that the savings this personal publicity reaches out in ever may then appropriately be used for a college widening circles; and even crusty old bachcourse, or for starting in business, or for a

elors are interested in babies. marriage portion.

Some other personal episodes are interestAdditional Advertising Value

ing. One mother said that the baby passAn additional advertising value is quite as

book had proved to her and her husband that sure, though not as readily checked, in the

they could save money, though they had prenew accounts that come to the bank as the

viously thought that they could not, on his result of the baby accounts; and on a

small salary. In another instance the baby careful, conservative estimate, one-third, or

pass-book had not been long issued when the 33 per cent. of the baby accounts bring new

proud grandfather of the newly arrived inaccounts to the bank as the result of the

fant came to the bank with $100 in gold that publicity that accrues to the baby pass-book

had been contributed to the account by him idea.

and other equally proud relatives. What can be said as to novelties, blotters,

How Accounts Grow fountain pens, calendars, bill-folds, and the Many persons lack the initiative to start like as to effectiveness in getting returns such accounts. Some, indeed, are literally afraid as these? Our experience seems to indicate to go into a bank. Its polished marble and that the cheaper advertising novelties are shining brass are overwhelming to those who worthless, and represent money thrown are used to more humble surroundings. But away, and that the more expensive one, these persons have enough curiosity about while somewhat more effective, are too cost the first dollar to want to come in and find ly.

out what it really means. Met with a kindYou may ask : How do the baby' accounts ly, tactful, sympathetic courtesy, they go bring new ones? No, there is no claim that out with a new air, and a feeling of confiany given family is going to plan on a new dence and friendship where they had before baby for the sake of getting a financial start had only timidity and distrest. They begin in life for it from the trust company. But to come in to make deposits because they like a discussion of this topic does bring us close the sensation; and this feeling is a real stimto some human interest stories. In one in ulus to the growth of deposits and to habits stance the trained nurse at the bedside in the of thrift.

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