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Member of the Federal Reserve System

Statement at the Close of Business

JUNE 30th, 1922

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Trust Funds Invested $151,851,805.89 Trustee Mortgages. $388,663,200.00 Trust Funds Uninvested 2,924,983.26 Securities Held Thereunder 66,536,423.81

Transfer Agent Due Sundry Estates . $154,776,789.15

or Registrar 655,225,020.41

(Par Value) Officers

H. C. McELDOWNEY, President
RICHARD B. MELLON, Vice-President J. M. SCHOONMAKER, Vice-President
Scott HAYES, Vice-President

JOHN A. IRWIN, Vice-President & Secy.
RALPH S. EULER, Vice-President

S. S. LIGGETT, Vice-President
J. HARVEY EVANS, Treasurer

HOWARD E. REED, Vice-President
EDWARD CREDE, Asst. Treasurer

JAMES S. CARR, Asst. Secretary
WILLIAM L. CHURCH, Asst. Treasurer WM. WYLIE SMITH, 2nd Asst. Secy.
WM. I. BERRYMAN, Trust Officer

Wm. A. ROBINSON, 3rd Asst. Secy.
CARROLL P. Davis, Trust Officer

FLORENCE J. HILL, 4th Asst. Secy.
W. W. GRINSTEAD, Trust Officer





We Welcome the Opportunity of Serving You



Vice-President, Bank of Italy, San Francisco, and President of the Financial Advertisers' Association


mittee. This committee, as its name implies,
passes upon all matters pertaining to the
smooth operation of the various departments
of the bank. And when any criticism arises
the chairman has a medium of approach to
the situation.

Stimulating Interest of Employees
So much for the mechanics of organiza-
tion. But no mere mechanics or official de.
vices, however skilfully adapted to the pur-
pose, can of themselves inject the only thing
that will produce real results.. a ger uine
spirit of cordial interest among the em-

HE further a bank or trust company reaches out in the effort to extend its

range of business, the more necessary it will be to rely upon interdependence among its selling forces. Perhaps I may illustrate the point by the Bank of Italy's campaigns among the sailors of the Pacific Fleet. The campaign is started by a series of homely direct advertisements in navy publications showing results of continuous saving on a small scale. Then, by permission of the commanding officer, the new business man addresses gatherings of marines and sailors in the Navy Yards and on the vessels of the fleet. Enlarging on the themes already developed in the advertisements, he points out to the men how they can prepare now for the business or trade which they wish to follow after leaving the service. Similar campaigns worked up in the så me way are carried on in the department stores and industrial plants. For out of these young people working in humble and subordinate capacities will come not a few of the stable citizens and business men and women of the future if they are trained now in the habit of thrift and wise saving.

But it will be readily seen that programs like these cannot be carried out by an advertising department or a new business department acting independently. They must be developed by a department embracing all of the selling forces of the bank acting together as a department of business extension. It must be further evident that there should be one person who can act as a clearing house; who is, first, in a position to control the advertising and see that it is expressing the real personality and purposes of the bank; and, second, in a position to influence effectively the working organization and see that the promises of the publicity department are carried out.

Our own solution for this is simple. The head of the business extension department is ex-officio chairman of an Efficiency Com

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ployees themselves. That, as I have said be We also regularly, but quite informally, visit fore, is the crux of the problem. That is the heads of departments and ask their adoften the weak link in an otherwise well vice about specific pieces of advertising copy. forged chain.

Often we get some constructive criticism. Undoubtedly the numerous and generous More often, perhaps, we do not. But in any efforts of modern banks to help their em case we get the men to focus on the adverployees have arisen largely out of the reali tisements. zation of the advertising man that he was My final suggestion has to do with the repowerless without a loyal and enthusiastic lationship of advertising copy to the “tie-up" corps of workers. The chatty house organ, problem. If the advertising man wants the the ball teams, the monthly dinners, the pen bank clerk and the bank's solicitor to "tiesion plans to provide for the clerk's old age, up" to his publicity, he must give them copy the group insurance to take care of his fam they can tie up to. ily, the bonus systems and purchasing clubs, have probably all had their first inspiration

The "Tie-Up" Problem in the advertiser's demand for a force in

Except perhaps in the small country bank, spired to back up his efforts. They are all the man in charge of the advertising is raregood ideas in themselves, too, and every

ly the creator of his bank's policy. He canprogressive bank is already adopting a cer

not fashion according to his desires a 100 tain number of them as part of its internal

per cent. institution, and then introduce his policy. But considered as an aid to adver

model to the public. He must take his bank tising, they do not have magic results.

as he finds it. And a bank at best has none No amount of loyalty in the abstract, for

of the immediately tempting and inviting instance, seems to make a bank teller read qualities of a department store, let us say, his bank's advertisements. You may pub

or an automobile establishment. Its tradilish an ad that will bring in a tidal wave of

tions of stability and sound financial judgfavorable and interested comment from the ment, which should be its best selling argupublic; you may publish another that will ments, appeal only to a financially educated bring down a storm of criticism on your

minority. And the advertiser must make his head-also from the public. And in both

appeal also to a financially “illiterate" macases your entire bank force may present a

jority, who, at the present time, are largely front of serene unconsciousness that either spenders and not savers. ad has been published.

Many of the recent booklets on trust sery

ice and the thrift idea have met this situaWeekly Business Extension Meetings

tion amazingly well by dramatic human inThe result of this has been that ingenious terest appeals. But a large part of the advertising managers all over the country newspaper and magazine copy still does not. have laid awake nights to devise methods of Instead, it makes lavish and superlative awakening the force in spite of itself to the promises of a general nature that no set of jourposes of the bank's publicity. They have human beings this side of the millennium set up bulletin boards, inaugurated morning could tie up to. lectures, evening lectures, afternoon get Our own effort has been increasing in together meetings, and employees' contests. two directions. In the first place we make And these are also excellent devices. But definite promises of certain practical services don't try them all at one time.

to which we know our force can be trained; In reading some of the enthusiastic ac and second, we are specializing in what I counts of this work in financial journals, I might call character advertising—which sometimes wonder where the bank teller is aims to delineate those qualities of the bank going to find time to balance his cash or that are particularly true of our institution eat lis dinner. Our own method at the and inake the Bank of Italy stand out as a present time and I regard all methods as distinct personality in the public mind. temporary and subject to change the mo The whole problem of "tieing up" the ment they cease to get results is both more imaginative conceptions of the advertiser to informal and more direct. We regularly in the actual working operation of the bank, vite not more than three or four men from is, after all, one of the most inspiring probother departments to our weekly business lems in the publicity game. Many extension meetings. We talk over the latest bank seeing itself through its advertiser's plans of our work and point out the way in eyes, as it could be and should be, has found which we give credit on the central file for new conception of its own possibilities fvery new account brought into the bank. and of its duty to itself and to the public.





Vice-President, Central Trust Company of Illinois and former Assistant Director

of the National Budget


(EDITOR'S NOTE: A few days before Mr. Abbott submitted to an operation for appendicitis in Washington, D. O., from the effects of which he died recently, he prepared for TRUST COMPANIES Magazine a transcript of his address on the National-Budget before the Chamber of Commerce of the United States, parts of which are given herewith. When President Harding appointed General Charles G. Dawes as Director of the Budget the latter selected Mr. Abbott as his first assistant to aid in establishing the new budget system. His splendid work in that connection later prompted the Treasury Department to enlist the services of Mr. Abbott as a member of the Tar Simplification Board to the duties of which Mr. Abboti devoted himself until shortly before his death.) THERE is no magic in the word ing the financial status of the Government; "Budget." That the mere passage of

its expenditures and receipts for the current the Budget and Accounting Act should, year, the preceding year and the next ensuin a night overthrow systems of Govern ing fiscal year for which appropriations are ment appropriations and expenditures, elim- asked, and (b) the recommendations of the inate waste and extravagance, both inten President for new taxes, loans on other aptional and inadvertent, make an appropria- propriate action to meet any apparent defition the maximum instead of the minimum

ciency between the estimated receipts and basis of expenditures in a given year, and

the estimated expenditures. It is in short, return money forthwith to the pockets of the the financial program of the Executive for taxpayer, is the iridescent dream of an aban

the fiscal year. doned idealist. The satisfactory working of

2. Consideration of the Executive recoma budget system must come through a pro

mendations, appropriations of money by Concess of evolution, not revolution; it involves gress to meet the expenses of the several denot only the creation of the budget machin

partments; this is a necessary step under ery, but the establishing of an effective work

our form of Government, since the power ing and completely harmonious relation be of Congress as respects appropriations is detween the spending departments on the one

fined in the Constitution itself. Time and a hand, and the Appropriation Committees of more complete co-operation between the Congress on the other.

Budget Bureau and Congress will gradually

reduce any gaps between the budget estiAuthority of the Budget Bureau

mates and appropriations actually made purThe law creating the Budget Bureau is suant thereto. very short as short and simple as the Annals 3. Supervision by the Executive, through of the Poon, consisting of seventeen short some chosen agency, of the expenditure of paragraphs comprised in less than four funds by the spending departments after the pages of the printed law. It is, and must appropriations have been made by Congress. be, only an outline of the various activities. A budget system in its entirety consists of

Economies in Initial Budget three steps:

The savings, or if you please, the econo1. The preparation and presentation to mies, which have been shown tc result in the Congress by the executive of the budget, as expenditures of 1922, should be considered made up by the director and approved by in a threefold aspect. First, those tracethe president. The law is specific in its able directly to the fact that the President statement of what this budget shall contain, has for the first time assumed his proper namely (a) Information to Congress regard place and duties as the head of the business

organization, and as such, by continuous Ex aim to reduce the Government transportaecutive pressure for economy, has compelled tion bill, estimated at approximately 200 the departnient heads to produce results. millions a year; "the savings to be effected Second, those economies which have re

through proper handling of the Government's sulted from better business methods and the

tratfic, including reclassification, the proper establishment of co-operation between the de

routing of its business, and a reduction in

number of the various rate groups and departments through the various co-ordinating

partmental traffic departments, is difficult agencies, and

to compute, but should be very large." Third, those savings which are the result

- A Federal Board of Hospitalization is inof that natural competitive zeal, under tended to co-ordinate and thereby make more which the department heads have, them effective a half-dozen instrumentalities selves, by greater forethought, more skillful whose 1921 appropriations called for about advice and judgment, the finding of more 746 millions. These bureaus now engage favorable markets and securing better prices, 47,512 persons, with a salary cost of about and you may add, if you insist, some meas 8542 millions, and control properties repreure of good-luck, put themselves in accord senting hundreds of millions; it is necessary with the principle that "extravagance has that co-ordination and method be introduced, become dangerous and economy fashion to save overlapping of service, over-employable."

ment, needless rentals, and many other items

of waste. A Federal Specifications Board Reforms Effected in Government Business is to "coznpile and adopt standard specificaControl

tions for materials and service and to bring The remedy sought through the Budget specifications into harmony with the best Bureau was found in a system of co-ordi comr.ercial practice." Finally, an Internated control for which the director cheer departmental Board of Contracts and Adfully acknowledges his debt to his experi justments whose duties are to standardize ence in France. There were established in the forms and methods of contract letting to turn by Executive order, through the budget the end that a uniform policy may control director, as his agent, the following:

the making of such contracts. A purchasing board, for a unified pur The savings thus accomplished and tracechasing policy, with a complementary liqui able to the causes I have given, out of the dation board for disposing of the large sur appropriations for the fiscal year 1922, are plus material stocks now in possession of the summarized in the Report of May 8th as Government; enormous losses have been in follows: curred by the actions of department officers The estimated expenditures for 1922, as who unintentionally bid against each other thus revised, show a total, including interest in buying and by uncorrelated disposals of and principal of public debt, and investment surplus. goods left on hand when the war of trust funds, of $3,922,372,030, as against ended. An organization of "corps area co a total actual expenditure in 1921 of $5,538,ordinators” has been created; the territory 040,689.30, or a reduction of $1,615,668,659.30, of the l'nited States is divided into nine a decrease of 30 per cent. But these figures areas, corresponding to those of the nine mean little unless the ordinary expenditures army corps, the purpose being to locate and for the operation of the routine business of report surplus accumulated stocks, and to the Government, generally subject to Execudetermine the field needs of the separate de tive control, are segregated and considered partments and establishments.

entirely apart from the others, as respects A surveyor-general of real estate is to de- which, (a) those fixed by Congress and not termine the occupying of premises outside subject to modification by Executive control, the District of Columbia by Federal em (b) reduction in principal of the public debt, ployees, thereby cutting off waste through and (c) the investment of trust funds, no leasing of private premises when the Govern reduction could be made by Executive aument has in its own buildings space that thority alone. Deducting all these, and also might be used. There is also a motor trans what are really operations in capital funds port agent, to stop the waste arising by ab through the medium of war corporations, solutely fixed assignments of motor vehicles then for the ordinary expenses of the routo executive departments and independent tine business of the Government we have Government establishments. The traffic busi in March estimates $1,785,875,672 as against ness of the Government has involved heavy actual expenditures in 1921 of $2,673,435,079, overlapping of service and duplicating of or a total reduction of $907,559,407.77, a effort; therefore a Federal Traffic Board will decrease of over 36 per cent.

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