TRUST COMPANY STOCKS Extraordinary gains have recently been quoted in the bidding for local bank and trust company stocks as evidence of their high favor from an investment rather than a speculative viewpoint. Shares of leading and especially of the senior banks and trust companies are closely held and in some cases shares of a particular trust company or bank appear, but rarely and then only at auction sales.

Increases in bid quotations have been very notable during the past year. Some of the more pronounced increases are shown in the following list giving last sale price as compared with Sept. 5, 1922, although gains are quite general throughout the entire trust company list:

Germantown National
Girard National
Market Street National
National Security

...

2514

604

....

Penn National Bank ... 410
Second National
Third National
Tradesmen's National

THE FALL BUSINESS OUTLOOK "Trade Trends" published by the Franklin National Bank of Philadelphia, voices confidence regarding the immediate future in business and industry as follows:

"Returning confidence in the immediate prospect for business has been the most significant development in the domestic economic situation during the past month. This has been chiefly reflected in the revival of buyers' interest in a number of important lines and in the improved tone of the security markets. In addition, some basic raw materials have shown greater firmness.

"These evidences of the normal approach of a healthy Autumn trade have had an unmistakably cheering effect upon general sentiment. Moreover, there is now wide appreciation of the fact that the lull of July seemed serious only by contrast with the tremendous speed of industry in the early months of the year. The recent slowing down largely represented the doubts and fears of merchants and manufacturers who stopped forward buying."

The Trust Company of Media, Pa., is preparing to occupy its new banking home erected at a cost of $125,000. V. Gilpin Robinson is president.

Louis M. McCloskey, formerly assistant title and trust officer of the Kensington Trust Co., Philadelphia, for a number of years, has been appointed title and trust officer of the Oxford Bank & Trust Co.

The National banks of Philadelphia show an increase of $29,502,000 in security holdings during the past two years with the total on June 30th last amounting to $13,507,000. The larger part of this increase is represented by investment in Government securities including certificates of indebtedness and short term notes. Franklin National had $11,426,474 Government obligations among its investments last month, whereas on June 30, 1921, the amount was, but $656,765. Increase in all security holdings of this bank was $15,636,042. Increase in case of the Fourth Street was $6,417,800, Central, $5,387,091, Girard $4,689,949, First $3,303,724 ⚫ and Philadelphia $1.231,009.

a year.

As a result, industrial corporations, outside of comparatively few lines, are now in not only healthy, but actually strong financial position. They are borrowing little, while their inventories are safely in hand and they are rich in cash and quick assets. Where business is borrowing it is not do ing so in extended way, but within safe lines, so that the banks are in liquid shape."

IMPORTANT GAINS BY PHILADELPHIA TRUST COMPANY

Within the relatively brief period of three months from April 3 to June 30, 1923, the Philadelphia Trust Company reports very substantial gains in deposits and trust fund holdings. Between these two calls the deposits increased from $19,148,842 to $423,643,894, and combined resources from $25,863,859 to $30,352,184. Trust funds increased approximately five millions of dollars to a total of $190,213,615 with corporate trusts amounting to $190,774,000. The capital of the company is $1,000,000; surplus, $5,000,000 and undivided profits, $708,289. Among resources are cash on hand and in banks, amounting to $6,339,993; loans upon collateral, $15,244,000.

Boston

Special Correspondence

TRUST COMPANIES IN NAME AND FACT

The wave of bank and trust company consolidation in this city has fairly run its course although more or less fugitive rumors of further important combinations are still current. The net result so far has been a considerable reduction in the number of both National banks and trust companies. In the main, these mergers, especially of larger institutions like the International Trust Company with the First National Bank and of the Commonwealth Trust Company with the Fourth Atlantic National Bank, have been governed by considerations of creating more resourceful units to serve financial and business interests in a bigger way and likewise to effect greater economy and enhance efficiency of administration. The fact that National banks now exercise trust and savings as well as practically all other functions formerly reserved to trust companies and savings banks, has helped this movement of consolidation along very considerably.

Another phase of the consolidation movements had to do with the absorption of some of the "weak sisters" among the smaller and more newly organized banks and trust companies that were perhaps directly or indirectly affected by the collapse of political banking two years ago. What the Banking Commissioner and enforcement of statutes could not gather up has been swept clean by the somewhat paternal taking over of these institutions which experienced hard sledding when the gullible portion of the public finally were taught that excessive rates of inter est for deposit, free services and political favoritism in banking could not survive the acid test.

Boston's banking and trust company situation is now incalculably stronger than it has ever been with genuine co-operation through the Clearing House and observance of the requirements that govern membership in the Federal Reserve Bank. But there is one aspect that relates particularly to trust companies which must not be lost sight of. Although National banks in this city have been fairly successful in developing their trust functions the fact remains that there are old line and conservative trust companies in Boston which have built up their great prestige and public confidence by many years of faithful and efficient administration of estates and trusts. Experi

ence in other cities as well as here has dem onstrated, despite the influence of the Fedral Reserve system, that it still pays to make trust business the cardinal instead of a branch function. The most valuable asset of the conservative old trust companies is the sense of responsibility, of experienced service and of human attributes which they have acquired through generations of strictly fiduciary operations.

The business of administering the estates and trusts of deceased as well as applying trust principles to the affairs of the living, is a very solemn one. Other things being equal most men of business discernment will continue to hold in high regard the institutions that center their attention and care on management of estates and the carrying out of trust obligations. It remains for these "old line" trust companies in Boston to carry on and hold aloft these traditions and high standards. While the granting of trust powers to National banks has stimulated trust companies in cultivating commercial banking business, the field for trust companies which devote their attention chiefly to fiduciary service, is bound to grow in scope and importance.

RESOURCES

Trust Department $14,000,000

NEW ENGLAND'S INDUSTRIAL AND TRANSPORTATION PROBLEMS

The hearing scheduled by the Interstate Commerce Commission to be held in Boston to consider the various plans as to consolidation of New England railroads in accordance with the policy outlined under the Transportation Act of 1920 has a vital bearing upon the industrial future of this section of the United States. There have been alarmist utterances as to the drift of cotton textile and woolen fabric manufacturing from New England to the South. and the West near the sources of raw material. Many of these statements are expressive of rival hopes. It is undeniable, however, that New England industrial and financial interests must bestir themselves in order to maintain their position in their various fields. This is particularly true in regard to rendering New England railroad systems more efficient and economical in operation.

Dominant sentiment in industrial, commercial and financial interests here is opposed to further control of New England railroads by trunk lines leading to the westward and prefer a consolidation plan that will preserve the independence of New England systems without impairing the competitive factors. New England industrial interests are naturally unwilling to have their fate placed in the hands of the large trunk lines. The Boston Chamber of Commerce recently conducted a mail referendum which resulted in a vote of more than three to one in favor of consolidation of New England railroads except the Boston and Albany and the New England lines of the Grand Trunk into a New England system. The same plan in effect is urged by the Joint New England Railroad Committee made in a report to the governors of the several New England States, which suggested the consolidation of the New York, New Haven & Hartford, with the Bos

ton & Maine, Maine Central and Bangor & Aroostook railroads.

The First National Bank of Boston, in commenting upon the report of the committee, in its recent "New England Letter" says:

"Adequate transportation and port facilities, the committee says, are vital to New England, the present provisions are totally inadequate and New England brains, energy and capital can and should vitalize its own transportation agencies. In this policy we cordially agree. Every effort should be made to formulate and put into effect a feasible plan for New England control of New England railroads. Prompt action is necessary. If we fail in this New England will lose its grasp on its own future and a progressive decline 'seems almost inevitable. Banking and business interests are urged to study this report.

CREDIT AND BANKING SITUATION

The soundness of the present credit and banking situation, says the Federal Reserve Bank of Boston, can be best measured by the fact that banks have been able to handle their requirements, themselves, without seeking additional accommodation at the Federal Reserve Bank. Since the first of the year, loans of the Federal Reserve Bank of Boston to its member banks have, averaged approximately $50,000,000. At the end of August, however, this item rose abruptly, as is usually the case in this season of the year. The heavy demands or funds from the agricultural sections of the Middle West, which are usually felt in the late summer months are thus again being noticed. Those Boston banks which carry large western balances are borrowing a greater percentage of their reserve deposits at the Federal Reserve Bank in order to supply their western correspondents with funds.