Argentine-A Fertile Field for American

Enterprise

There is a wealth of timely and valuable information for American men of capital, for business men, exporters and importers in the latest of the comprehensive series of pamphlets issued by the Guaranty Trust Company of New York dealing with foreign trade and investment opportunities. The last publication deals with the Argentine Republic, which is one of the wealthiest and most progressive of South American countries. Previous editions in the series related to Russia and China where exceptional opportunities invite American enterprise. The suggestions offered are particularly valuable because South American countries and business houses, which had for years enjoyed easy credit and first-class service from abroad, were left in an almost helpless condition when the war broke out in Europe and now naturally turn to the United States for assistance. As evidence of its faith in the future growth of financial and trade relations between this country and the Argentine Republic, the Guaranty Trust Company recently sent two representatives to Buenos Aires where they will make their permanent headquarters and enable the company to offer direct service to its customers who are interested in South American development.

A few salient facts and figures taken from this pamphlet are not amiss at this time. It is perhaps not generally known that the Republic embraces in area 1,153,418 square miles, which is more than one-third the total area of the continental United States. The population has increased from 3,954,911 in 1895 to 7,979,259 in 1915. The total value of live stock in 1915 was estimated at $754,630,000 and the amount of area under cultivation increased from 13,700,000 in 1896 to the present total of 60,000,000, a gain of 350 per cent. As an agricultural nation the Argentine ranks seventh among the nations of the world in the production of wheat. According to the last industrial census the value of annual sales for the principal industries amounted to $527,846,154. Total imports for 1915 reached the sum of $218,951,000 and exports, $538,740,000. The export of commodities from the United States to the Argentine Republic in 1914 amounted to $45,179,000. The banks of Buenos Aires reported last year aggregate deposits of $613,158,000 while the Bank of the Nation, the official government financial institution, reported deposits of $289,243,000. Other facts and statistics refer to railways, investment of foreign capital, etc.

The Georgia Trust Company is being organized at Macon, Ga., with capital of $50,000.

Developing Banking Relations of New York with South and Central America

One of the most important enterprises in developing closer banking and commercial relations with South and Central American countries is the Mercantile Bank of the Americas, which is owned and controlled by interests associated with J. and W. Seligman & Company, Brown Brothers & Company, and the Guaranty Trust Company of New York. This banking institution proposes to establish separate banks in the various South and Central American countries with which financial and business relations are cultivated. The first enterprise of this character is the incorporation of the American Mercantile Bank of Peru, with a capital of $5,000,000 which has already received its charter from the Secretary of Stateat Hartford, Conn. The incorporators are A. Breton, Albert Strauss, James Brown and Jason A. Neilson, all of New York City. The entire capital stock of the American Mercantile Bank of Peru will be owned by the Mercantile Bank of the Americas, and will serve as a medium through which the latter bank will transact its Peruvian business. The Bank of the Americas already does business in Nicaragua through the National Bank of Nicaragua.

The will of the late Mr. James Longley, who was a director of the Boston Safe Deposit & Trust Company since its organization in 1875 and vice-president since 1898, provides for a number of important bequests to organized charity and welfare work. Among these provisions is a large bequest for the Permanent Charity Fund of Boston, which was organized last year through the initiative of interests associated with the Boston Safe Deposit & Trust Company for the purpose of establishing a community trust fund for the careful

JAMES LONGLEY

and continuous management of charitable bequests. The Permanent Charity Fund, of which the Boston Safe Deposit & Trust Company is trustee, follows in its organization and form of trust agreements the provisions of the Cleveland Foundation and other similar "community trusts" or "foundations," which have been established in a number of cities during the past two years. It is probable that the first actual money to be. distributed by the Permanent Charity Fund will be from the Longley bequest.

It is often said that the character and graces

of heart and mind are most faithfully reflected in testamentary dispositions. As a human document the will of the late Mr. Longley, with its well directed contributions to genuine charitable and welfare work, is truly typical of a life of usefulness and those sterling qualities which endeared the testator to his friends and business associates. Although many important and varied business interests claimed his attention Mr. Longley not only responded freely to worthy movements for the uplifting of his fellow-men but also gave up freely his time and energies to their direction. In addition to the large provision for the Permanent Charity Fund the late Mr. Longley made a number of other public bequests including those to the Home for Aged Men and the Home for Aged Women of Boston and the Farm and Trades School, located on Thompson's Island, Boston Harbor. His will also provided for a pension fund of $100,000 for the benefit of the employees of the Boston Safe Deposit & Trust Company and a pension fund of $50,000 for the benefit of the employees of the Union Trust Company of Chicago.

Mr. Longley was a native of Boston, being born in that city on January 13, 1840. He was educated at Chauncy Hall School, Boston, and his early business life was spent in the boot and shoe business, and as a partner in the firm of Robinson & Longley. He was active in the organization of the Boston Safe Deposit & Trust Company in 1875 and was prominent in the management of that company as a director from the time of commencing business and as a vice-president since 1898. He continued to devote attention to his duties as vice-president of the trust company until the time of his death, and its growth was to him a constant source of pride and satisfaction. He was also senior member of the board of trustees of the Franklin Savings Bank of Boston and a director of the Union Trust Company of Chicago and the Boston Storage Warehouse Company. Mr. Longley was extensively interested in mill operations. He was vicethe president of Home for Aged Men of Boston; treasurer of the Paul Pratt Memorial Library of Cohasset, Mass., and member of the Boston Art Club, Algonquin Club, Boston Society and a life member of the Boston Young Men's Christian Union. Mr. Longley is survived by his widow, who was Miss Julia Robinson, daughter of John P. Robinson, his former partner.

Obviously, the most conservative and prudent class of investors are the banks and trust companies. By experience and training they are schooled to consider the questions of safety, stability, marketability and yield in the selection of investment securities, either for their own account or in acting as intermediary for customers. It is therefore of interest to ascertain the character of bonds for which banks and trust companies show a preference. Such information is especially valuable during a period when general economic relations have been so severely tried and subject to such confusion as during the past year when events in Europe cast such a shadow over the future.

N. W. Halsey & Co., the well-known private banking and investment house of New York City, have issued a timely and instructive pamphlet entitled "Bonds Favored by Banks in 1915." The study of the situation made by this firm leaves no doubt that public utility bonds enjoy high favor among such discriminating investors as banks and trust companies. Reasons are assigned for the desirability of this type of investment during a time of general disturbance and uncertainty. In making the comparison six established utility bonds and six standard railroad issues were used, the prices being arrived at by taking the average between the bid and asked prices during the last week of each month in 1915. It is shown that the average yield of the six utility bonds was 5.13 per cent. and the average yield on the railroad bonds 4.40 per cent. The reports made to the Comptroller of the Currency showed that holdings of public utility bonds by banking institutions during the year ending June, 1915, to the extent of .137 per cent. as against an increase of only .017 per cent. increase in holdings of railroad bonds.

Protecting Loans Secured by Cattle Paper

Banks of the Southwest are exercising more conservatism than usual in extending loans on cattle paper because of the. high prices which prevail in the cattle business. Owners of cattle are holding their stocks for high prices with the result that the loans now asked often exceed the total amount of money realized on cattle sales several years ago. Bankers in many instances regard the margin of safety as too small and the risk increased because of the possibility of unusual price fluctuations. There is no discrimination, however, against loans negotiated through cattle loan companies and distribution organizations where the hazard is taken care of by such companies applying for the loan and which are of long standing.

The Potter Title & Trust Company of Pittsburgh has inaugurated the practice of inserting a clause in its mortgage loans, which limits the judgment to the property mortgaged. President John E. Potter has for some time been of the opinion that the entering of general mortgage bonds is a harmful practice to real estate interests and the general public, as it very often unfortunately ties up other property.

Security Trust Company

FORT AND GRISWOLD STREETS

DETROIT, MICH.

Capital and Surplus, One Million Dollars Thoroughly Equipped to Act in All Trust Capacities

Pays 4% on Certificates of Deposit

THE SAFE DEPOSIT AND TRUST COMPANY

of PITTSBURGH Oldest Trust Company In Western Pennsylvania Does No Banking Business

Facilitating Remittances to Oversea
Countries

In connection with the development of foreign trade and the demand for improved international credit and exchange facilities the Irving National Bank of New York, through its foreign department, offers exceptionally valuable facilities to banks of this country which have occasion to make remittances abroad. An extensive new list of foreign correspondents was published recently by the Irving National Bank and distributed among its correspondents in the United States which indicates the very marked extension of facilities which have been provided by that institution in behalf of banks which issue their own drafts when making remittances to oversea countries. The list contains more than 4,000 names and is prepared in convenient form designating how drafts shall be drawn and the names of correspondent banks together with cities and towns in each country covered by such foreign correspondents.

Accompanying the list of foreign correspondents there is a page of general instructions. Some of the requirements to be observed are as follows: Checks must only be drawn by the bank's correspondents for their own account and over their own signature, inasmuch as the Irving National Bank is only the intermediary for transmitting the funds to the drawees. Correspondents are advised to use the requisite blanks, in preference to their own forms, and which the Irving National Bank furnishes. All checks must be advised on the day they are issued and correspondents will make their profit by charging a commission or a higher rate to their customers, inasmuch as the quotations given are net. Foreign checks must not be issued in any other money than that designated at the heading of the country as shown in the list. The laws of most foreign countries do not hold the drawees responsible if they pay checks in good faith to the

wrong party and no responsibility can therefore be assumed under the circumstances. The purchasers are therefore cautioned to send all checks by registered mail.

Instructions are also conveyed in regard to specimen signature of the payee, designations across face of check, which will afford greater security and the issuing of duplicates. Unused drafts which have been covered should be endorsed over to the bank and forwarded to New York for redemption at prevailing market rates. Drafts drawn on the principal foreign cities can be more readily negotiated than those drawn on small towns. Correspondents maintaining foreign accounts are also advised that checks of any amount whatever, which are recognized as being drawn for the purpose of replenishing their balance- or drawn to any order upon countries in which they maintain their own accounts, will be debited at closest market rate upon arrival of advice without regard to rate previously quoted on daily rate sheet and that special rates will be quoted by wire upon request. The revised list of foreign correspondents is included in the latest foreign exchange equipment for banks and will be furnished upon request by the Irving National Bank to any bank in this country which is called upon to make remittances abroad.

National Bank Resources over 14 Billion The analysis recently published by the Comptroller of the Currency of the reports of all National banks of the United States as of May 1, 1916, shows that their total resources on that date were $14,195,000,000, surpassing by $356,000,000 the greatest assets ever shown in the history of these banks. The capital, surplus, and undivided profits of all National banks on May 1, 1916, amounted to $2,109,000,coo, exceeding by approximately a million dollars the maximum amount ever shown in any previous statement.

As compared with the last previous call of March 7, 1916, individual deposits increased $419,000,000; and deposits from other banks declined $78,000,000, making the net increase in deposits $341,000,000, against an increase in loans and discounts for the same period of $116,000,000. As compared with the statement of May 1, 1915, the National banks increased their total deposits $2,243,000,000, while their loans and discounts increased during the year $962,000,000.

Acknowledgment of New Savings Accounts

Experience has shown that a brief and courteous letter acknowledging the opening of a new savings account is not only a means of holding depositors, but also of encouraging connections with other departments. The Mercantile Trust Company of St. Louis has adopted the policy of sending out a neat acknowledgment card, signed by President Festus J. Wade, which is enclosed with each account of less than $100. Where the amount of more than $100 a personal letter is written, signed by one of the vice-presidents of the company. The printed card which is send to those who start with savings accounts under $100, reads as

follows:

"You are welcome as a depositor and we hope your account will grow steadily through systematic saving.

"We have ten departments other than our savings and shall be glad to have you avail yourself of these facilities."

Robert L. Gerry and Parker E. Handy were elected directors of the Farmers Loan and Trust Company of New York at the recent annual meeting.