The Director claims out of this total reduction that the economies and savings incident to the new imposition of Executive control, the constant Executive pressure for economy, the institution of co-ordinating agencies, and the constant check kept upon such expenses amount to $250,134,835.03. The difference between this amount and 907 million plus is pone the less a saving because it cannot be traced to any one source. Suppose it is all the result of worthy emulation. Then everybody who participated is entitled to his share of the credit.

Budget for 1923

The budget for 1923 as presented to Congress indicated total estimated receipts of $3,338,182,750, and total expenditures, including reduction of the public debt, of $3,505.754,727. This shows a reduction in the estimate of ordinary expenditures for 1922 of substantially a billion and a half, as compared with the same expenditures for 1921, and as respects the estimated expenditures for 1923, a further reduction of substantially $450,000,000 under 1922.

In the preparation of the 1923 budget the same limitations were imposed upon the activities of the Bureau as in the reduction of the 1922 expenditures. Of the total estimated expenditures for 1923 of $3,505,000,000, over $2,000,000,000 is outside of any control of the Budget Bureau, being either expenditures fixed by Congress not subject to modification by Executive control, investment of trust funds, or interest and reduction in principal of the public debt, and other expenses growing out of the war which must necessarily be paid.

The reduction accomplished is all from the ordinary expenditures for operation of the routine business of the Government generally subject to Executive control. The proper basis of any percentage comparison, therefore, is not against the total estimated expenses of 1922 of over $3,900,000,000, but the reduction is really from the ordinary expenses of the routine business of Government which for 1922, as revised in March, was $1,765,000,000, a percentage of reduction, therefore, of substantially 27 per cent. instead of the apparent reduction of only about 12 per cent.

Within a few months the business of Government (not the Government) has been completely reorganized. Without legislation, without the transfer of a bureau from one department to another, without the elimination of regrouping of any activities, but simply through the co-ordination of the efforts

of the administrative vice-presidents, the interpretation and imposition of a uniform and unified executive policy, the business organization has emerged from its primeval chaos into a smoothly running harmonious machine, functioning in the same manner and as effectively as any well managed private corporation. Dividends are in sight; no company rewards its stockholders the first year after its reorganization.

WILLIAM ROCKEFELLER'S WILL PROVIDES FOR TRUST COMPANY ADMINISTRATION

The provision in the will of the late William Rockefeller, who died June 24th at his home in Tarrytown, N. Y., authorizes the trustees of the estate to employ a trust company to act as custodian of the property of the decedent and also to appoint a trust company to act as associate in the handling of the estate which is variously valued at from $150,000,000 to $250,000,000. The will which was filed for probate in the Surrogate's Court, leaves the bulk of the estate to the four children of the deceased. The executors are William G. and Percy A. Rockefeller and John A. Garver.

The will was executed on September 5, 1919, only a short time before the death of Mrs. Rockefeller, which occurred in January, 1920. When the document was drawn by Mr. Rockefeller he established for her benefit an $8,000,000 trust fund and also bequeathed to her various properties. The residuary estate was left in equal parts to the four children of Mr. Rockefeller.

To his son, William G. Rockefeller, and to his daughters, Mrs. McAlpin and Mrs. Dodge, Mr. Rockefeller left their shares of the estate in trust. To Percy A. Rockefeller, his father left absolutely three-fourths of the latter's share of the estate, directing that the remaining one-fourth be held in trust under the same stipulations governing the trusts established for the other three children.

The trust funds established for each of the children are such that the income from their shares is to be paid to the legatees during their lifetime, and at their death the principal is to pass to their issue. Another provision of the will is that the executors and trustees shall receive as compensation for their services $100,000 each in lieu of the commission allowed to them under the law.

The late Mr. Rockefeller was director in a number of corporations and financial institutions, including the United States Trust Company of New York.

E

XPERIENCE showed us that two things were essential in properly introducing our Insured Savings Plan. One was that the distribution of the account be handled by a responsible person with a competent sales staff under him and that ordinary life insurance or some form of insurance which paid a greater commission to the individual distributing the account was necessary.

We began a thorough study of the plan. From our experience we developed a plan which is now n use, and which is gaining accounts for us at the rate of about one hundred a mouth. We find that the greatest benefit from the plan comes by reason of the fact that we are able to employ a staff of six capable salesmen as representatives of the bank to present the special savings plan in our city. This is a permanent organization thoroughly schooled in the details, not only of the plan but of the other services of our bank. Careful attention is given to each one of the salesmen in an effort to thoroughly instruct him in the functions, the aims and the ideals of our institution. Primarily he goes out to sell savings accounts; actually he is constantly selling our bank to all classes of people. We derive a substantial benefit from this representation because these salesmen talk to from fifty to one hundred persons every day. The word of mouth publicity gained in this way brings substantial returns.

Requires an Experienced Sales Staff

No cost of solicitation is borne by this institution. The salesmen do not draw salaries or commissions from the bank but from a representative of the insurance company. This representative has a contract with the bank.

It has been our experience that the account cannot be presented properly, and with good results by advertising alone. There must be a personal contact with salesmen, and we are sure that wherever an attempt has been made to sell the account by advertising and without an experienced sales staff the cost to the bank has been exorbitant. When we refer to an experienced sales staff we mean a staff of men who have had at least three or four months' experience with the account.

Description of Plan

Our plan has as its unit a monthly deposit of $10. Immediately after the account is opened a life insurance policy for $1,200 is issued by a reputable company. The regular physical examination is required. Premiums are deducted from the account at six months' intervals. Interest is added at our regular interest paying periods and dividends are credited to the account when authorized by the insurance company.

The plan works out in such a way that at age thirty a depositor, after ten years in the plan, will receive approximately $98 more than he has paid into his account if he wishes to close it and his insurance premiums over the full period will have been paid. This computation takes into account the cash and loan value of the insurance policy. By deducting this amount from the cash value of the account at the end of the tenth year the insurance may be kept in force and carried on indefinitely.

At any age under our plan a depositor pays to his account a total of $1,200 in ten years at the rate of $10 a month. Beginning at age 20 his insurance premium for ten years would total $218.40 or $21.84 annually. At semi-annual periods half of the

annual premium is deducted from the account. To the balance remaining the bank adds interest in May and November. At age twenty this totals approximately $220, depending, of course, on the regularity with which deposits are made.

The insurance company issues a participating ordinary life policy. The dividends payable are added to the account. The policy has a cash value of $80 at the end of ten years, at age twenty, in the event the plan is completely discontinued at that time. This is a cash asset which has been built up, and it is treated as such.

Example of How the Plan Works

We thus have a simple problem in addition and subtraction:

Total period-ten years

ONLY GIRL GRADUATE IN BANKING
INSTITUTE COURSE

Among the conventions upset by the Great War was the general impression that the business of banking was peculiarly "man's work" and that the feminine mind possessed no aptitude for the intricacies of the science of banking. During and since the war women have been steadily gaining wider recognition, not only in routine duties but also in more responsible and even executive positions. The same holds true in regard to the number of women and girls who are availing themselves of the special or standard courses in banking provided by the American Institute of Banking.

Total cash value of account....$1,323.18

The policy issued has all extended insurance features. Any type of insurance, in any amount, may be written with our plan. The cancellation or lapsation rate is rather heavy -about 25 per cent.-depending on the proper handling of the account and the customer..

We make the savings account the beneficiary under the policy. Then we make the account payable to any individual or firm selected by the depositor. This enables us to hold the policy in our vaults-potential assets of our depositors or their estates amounting, as you will readily see, to millions of dollars in the case of a large number of accounts.

There is considerable detail incidental to handling the account. We believe one girl could very well take care of the accounts obtained by a staff of ten salesmen. The window detail is not great. Our plan seems to be very flexible. The monthly deposit of $10 is used merely as a unit, and there is a $1,200 unit for insurance. We have depositors who are carrying accounts which range in monthly deposits up to $100.

Ralph W. Bell, executive secretary of Western Reserve University, has become a member of the new business department of the Cleveland Trust Company.

MISS GIULIETTA TALAMINI

The only girl in a class of forty-seven to graduate this year in the standard course of the New York Chapter, A. I. B.

To Miss Giulietta Talamini, who combines personal charm with serious study, belongs the distinction of being the only girl to graduate in a class of forty-seven graduates in the 1922 standard course on banking given by the New York Chapter of the American Institute of Banking in co-operation with Columbia University.

Miss Talamini was formerly employed as translator at the Guaranty Trust Company and the National City Bank of New York. At present she is employed in the banking department of Grayson M. P. Murphy.

VALUABLE PUBLICATION ON CORPO

RATE TRUST FACILITIES

There are still too many business men and executives to whom the fiduciary and fiscal services rendered by trust companies to corporations, seem like a closed book, wrapped in technicalities and cryptic in language. Very often corporations have to grope their way through difficulties, losses and even reverses that might have been avoided before they come to recognize the essential character of corporate trust service. Moreover, the trust companies themselves, because of the seemingly complex and technical character of such services, have not found corporate trusts as susceptible to publicity propaganda as they have personal trusts.

The most complete work on Corporate Trust Service, presenting the facts in compact form as well as adapted to ready comprehension of the layman, is a book of 125 pages just published by the Fidelity Trust Company of Buffalo bearing the title "In Witness Whereof." The author is H. F. Drollinger, manager of the new business department of that company. The book not only bears evidence of painstaken effort but interprets the various branches of trust, fiscal and protective facilities provided for corporations by trust companies, in language that is most interesting. Instead of the author assuming that the reader is familiar with technical terms he writes of each type of service in a way that commands attention and creates clear impressions.

"In Witness Whereof" starts with a romance entitled "Brenton & Company." It is a chapter of actual experience encountered by practically every corporation that has forced its way through many adversities until finally established on a sound business and financial basis. The corporation encounters many obstacles, and as they arise the need and value of trust company service is developed through practical illustration. First, there is the practical aid given by experienced trust company counsel in connection with the organization of corporations. Then comes the realization of the value of having a trust company take over the responsibilities of transfer agent of stock and of registrar requiring knowledge of conflicting laws and varying requirements. Then arose the advisability of appointing the trust company as dividend disbursing agent, as trustee under a voting trust, as trustee under a mortgage for the issue of bonds, as financial agent for the care of collateral and

securities in which reserves were invested, as depository for exchange of securities, and finally as receiver in connection with another corporation, the business of which was taken over by the Brenton organization.

The book which is one of the most important contributions to trust company literature, discusses in a practical yet interesting style the scope and character of services rendered by a trust company with separate chapters devoted to the following subjects: Transfer Agent, Registrar, Fiscal Agent under Municipal Bond Issue, Trustee under Corporate Bond Issue, Safekeeping Agent, Depositary under Reorganization Plan, Disbursing Agent, Voting Trustee, Escrow Agent, Receiver and Assignee.

The Dupont National Bank of Washington, D. C., has been absorbed by the Merchants Bank and Trust Company; the First National Bank of Harrisburg, Pa., has been taken over by the Commonwealth Trust Company of that city and the Haymarket National Bank of Boston has been absorbed by the Massachusetts Trust Company.