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One man came in when his baby was a year old and said he wanted to put in a dollar for each year of the baby's age as it grew up, $2 when it was two years old, $3 when it was three years old, $4 when it was four, and so on. He .could scarcely believe it when he was told that his deposits alone, not counting any interest, would amount to $231 wben the boy was twenty-one, and that this money would be earning money all the time.

Miscellaneous By-products The foregoing represent only the tangible results in new business to the bank, in the form of accounts that are the best type of accounts to have, because they stay, and are not drawn out to be used in more alluring investments; nor are they of the type and size that are likely to be withdrawn in time of panic when people may become fearful of the safety of larger deposits.

In conclusion I want to point out only a very few of what might be called the intangible results, but which are none the less real or less valuable. Think what it means to have every child in the place with an interest and a confidence in your banking institution. Think of the change in sentiment toward property and capital when even the child of the very poorest laborer—and therefore its parents-has a personal and a financial interest in a so-called “capitalistic" institution.

Nothing that I can think of will do more than such accounts, and the friendships they engender, to bring about the time when an artificially fostered hatred will die away from those institutions that

seeking chances to serve.

Do you suppose that the right start will not inculcate habits of thrift, and responsibility, and loyalty, and belief in the rights of others—because the individual has property rights of his own, from his very birth. It ought to raise the level of good citizenship in every community in which it is tried.

More remote, perhaps, but not beyond the realms of possibility, if bankers get interested in the recording and registering of births from a business standpoint, is the likelihood that this increased interest on the part of influential men of every State and community, may put on the statute books, and lead to their enforcement, laws requiring birth registrations everywhere.

But, as I say, these are remote, though not without great value. However, I am willing, if you would have it so, to rest the case of the baby pass-book, with its dollar deposit, on the dollar-and-cents advantage as an advertising business getter which is, as I said in the beginning, one of the best and cheapest methods of bringing new depositors to a bank.

(Copyright applied for 1922.)


This is one of a series of attractive window displays used by the Union Trust Company of Cleveland at its First Trust Office, featuring the topic "When a Bank Account Looks Good.”

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Vice-President, Los Angeles Trust and Savings Bank

(EDITOR'S NOTE: The notable pioneer work accomplished by the trust companies of California in connection with the standardization of fees for trust service, standardization of trust forms, and in providing models of administrative organization, has attracted the attention of trust company people generally. In the following report by Judge Hervey, as chairman of the Trust Company Section, California Bankers' Association, he reviews the work accomplished, and also discusses the situation arising from the enactment of the Lawyer's Bill" by the Legislature, which is now the subject of a referendum. I

T the very beginning of our official for if the statute sought to be nullified beyear we were confronted with the comes effective, it will seriously affect their

serious problem and greatest business and their usefulness. Moreover, the menace the trust companies in this State proponents of the law have directed their have ever faced, and it was the opinion of attacks mainly toward the trust companies your officers that for the year just ending and during the whole of the campaign before the attention of the members of the Section the people the trust companies will be the should be temporarily diverted from the targets for innumerable shafts of criticism, usual concerns of the trust business and con misrepresentation and abuse. Already some centrated on the defeat of newly enacted of the less temperate members of the legal legislation designed to place unnecessary profession have undertaken to undermine and unwarranted restrictions on the banks the contidence of the people in the integrity and bankers of California. With this thought and responsibility of trust companies and appermost in our minds we consented to a have resorted to personalities and abuse halt in our constructive plans and turned which must be shocking to the better ele. from the pleasing task of perfecting our or ment of that honorable profession. It is to ganizations and service to the unpleasant be expected that no personalities of any but necessary struggle to preserve our rights kind will be used as weapons by the memand privileges under the law. A referendum bers of this association, and that no effort on the Sample Bill engaged our early and will be made by any one at any time to disearnest attention and the same was com credit the members of the legal profession or pleted and the force of the objectionable to destroy to any degree the confidence of statute was suspended until the issue can the publir in that profession and the respect be determined by the great jury of Cali in which its members are now held by the fornia electors in November next. While our people. The question between the bankers contention is meritorious and our efforts are and the lawyers involves an inportant prin. being made in the interest of the public and ciple and our constant aim shall be to estabour success will redound to the good of the lish the principle in which we believe, and people of this State, yet a State-wide cam not to tear down nor destroy those whose paign in behalf of any measure is difficult interests or beliefs differ from our own. and expensive, and in this instance we have It is a fact that the people of California arrayed against us the power and influence will suffer the greater injury from the obof the associations of an important and jectionable legislation and that all we do in great professional class.

sustaining the referendum will be done, not

alone for ourselves, but for the public good Uawarranted Attack on Trust Companies

and welfare. The trust companies are particularly in At the time of our last session the Govterested in the outcome of the referendum,

ernor of California had not signed the Sam

ple Bill (Senate Bill No. 21) and resolutions were adopted condemning the bill and urging the Governor to withhold executive approval thereof. In pursuance of the resolution adopted at the last session of the California Bankers' Association, the president of the association appointed a committee of nineteen members to take active charge of the work of sustaining before the voters the referendum that had been perfected, and this committee is now acting and is entitled to and will have the whole-hearted support of the Trust Section. Our attention has been engrossed with this matter during the entire year, and the subject will constitute a considerable part of the deliberations of our present meeting, and further reference thereto in this report is unnecessary. General Survey of Trust Company Business

A general survey of the business of California trust companies demonstrates that the business is steadily growing and the companies are making substantial progress. The volume of transactions indicates a wider appreciation on the part of the business community of the value of the services performed by the companies and a better knowledge of the operations, capacity, responsibility and permanency of corporate fiduciaries. The trust companies must realize that as the public comes to have a better understanding of their important work they will have a constantly growing volume of tasks and responsibilities, and that they should be fully equipped and prepared to function properly and to perform adequate and skillfully the services they are authorized by law to undertake. We are now entering upon an era of a great growth and expansion of the trust business and our facilities must be provided in advance, else the success for which we have waited will be retarded. The records of the office of the Superintendent of Banks show that at the end of March, 1922, fiftyseven banks were authorized to do trust business. Of these twelve are National banks and thirty-eight are members of this Section. Two of these banks, however, are in process of liquidation and others will probably be merged or consolidated in the near future. No accurate statistics are available as to the amount of court and private trust business transacted by these banks. It is hoped that hereafter it will be made possible to secure and compile information which will clearly indicate the progress which is being made as well as the trend of our work throughout the State. Four trust companies maintain with the State

Treasurer the maximum deposit required to do a trust business and the total of all such deposits amounts to $9,862,875.

Fee Schedule The standard fee schedule heretofore adopted was the subject of discussion at the session of this Section in 1921, and by resolution it was ordered revised and when approved by the Executive Committee to be printed and distributed. This schedule is now approved and adopted, and has been or will soon be distributed in printed form to the members. In this important work this Section first pioneered the field and was followed by the excellent and exhaustive work of the American Bankers' Association. The larger number of the changes made in our schedule we effected to make it more nearly conform to that prepared by the committee of the Trust Company Section of the American Bankers' Association.

Standard Trust Forms The standardized trust forms prepared in 1919 by a committee of this Section met with a flattering reception and proved helpful and suggestive to trust officers and lawyer alike. Many commendations were received from institutions, journals and trust men who were qualified to judge the quality of the work done. The demand for the standard form booklets continues, but the edition was long since exhausted. In consideration of the requests already received for these books and those that will come in the future from new or expanding institutions, it is now desirable that a reprint be made or a new edition prepared. Some of the forms in the book should be altered and others should be added to make the work more complete. I, therefore, recommend that a committee be appointed to revise the book of standard forms, and that when revised an edition be printed and distributed.

Code of Ethics At the last session of the Section a committee, consisting of Messrs. Starbuck, Lathrop and Veenhuysen, was appointed for the purpose of “To gather expressions of opinion throughout the country for a basis of drawing up a code of ethics for the trust companies of California.” The committee is not ready at this time to report, but because of the importance of the subject and the bene. fit that would accrue to the members of the Section from such a code, I recommend that the committee be continued and that it be urged to prosecute its labors, so that we may have a complete report at our next sessiou.

Convenience 19 Offices in Buffalo

Safety Capital and Surplus $17,000,000.00 Service Courteous regard for the wants of

each customer

You will be welcome at any of the branches of the



panies and the scope of the lawyer's exclusive field of activity. A cursory examina. tion by the lawyers of the methods and operations of the trust companies would suffice to clear away misapprehensions and prevent misrepresentations and unwarranted attacks against the trust companies by the profession.

Relations with the Bar Ever since the organization of the Trust Section it has assiduously endeavored to cul. tirate friendly and co-operative relations with the members of the Bar. Our spirit in this matter and our good will toward the attorneys should suffer po diminution because of the unfortunate and truly deplorable contest that has been forced upon us by the so-called “Lawyers Bill." No class of business men are in better position to know and understand the lawyer and his professional work than are trust men. We are sensible of the ideals and ethics of the profession and we honor and respect the reputable members of the Bar. We transact much business together, and find our relationships to be mutually advantageous and helpful. We are desirous of developing and extending our friendships and maintaining harmonious relations with all members of the profession. If an insuperable barrier interposed between the lawyer and the trust company it would be unfortunate indeed, but I am sure that the differences between us are due largely to a lack of a clear understanding of the functions and practices of the trust com


Notable gains are shown in the June 30th financial report of the Merchants Loan & Trust Company of Chicago. Since Jay 5th the resources show an increase from $141.179,000 to $151,075,000, with gain in cash resources during that period from $26,968,000 to $33,700,000. Among the resources a re loans and discounts of $61,032,000; U. S. bonds and certificates, $5,669,000; other bonds and mortgages, $26,776,000; acceptances, $12,-. 760,000; letters of credit, $2.331,000 and other banks' liability on bills bought, $7,257,000. Deposits aggregate $107.883,000. The capital is $35,000,000 and surplus $10,000,000. Undivided profits shows an increase since May 5th from $1,816,000 to $2,192.000.

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