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Where the Investment
Demand is Focusing

Under the pressure of Investment demand, centered at present on
Municipal Bonds, the price range of different classes of bonds has
diverged more than their relative merits deserve.

Investment Opportunities

exist in Railroad and Public Utility Bonds,

List of attractive issues will be furnished upon request for pamphlet Q-83, entitled
"Trend of the Bond Markel."

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William C. Poillon Admitted to Partnership in Banking Firm

Tucker, Anthony & Company, members of the New York and Boston stock exchanges, have announced that Mr. William C. Poillon has been admitted as a general partner in that firm. Mr. Poillon, who recently resigned as vice-president of the Bankers Trust Company of New York, is widely known in trust company circles. He was honored with the office of president of the Trust Company Section of the American Bankers' Association in 1912 and zealously furthered the work of that organization.

Mr. Poillon has been identified with trust company affairs during the past twenty-five years. He entered the employ of the Mercantile Trust Company of New York in 1889. By gradual stages he attained the position of president of that company which was merged with the Bankers Trust Company in 1911, becoming vice-president of the latter at that time, a position which he held until his recent retirement. The cordial wishes of the trust company fraternity accompany Mr. Poillon in his new field for which he is especially qualified by experience and an intimate knowledge of financial affairs.

WILLIAM C. POILLON

WHO HAS BECOME A GENERAL PARTNER IN THE BANKING FIRM
OF TUCKER, ANTHONY & CO. OF NEW YORK AND BOSTON

GROWTH OF LOS ANGELES BANKS AND TRUST
COMPANIES REFLECT REAL PROSPERITY

WHY STATE INSTITUTIONS DO NOT JOIN FEDERAL SYSTEM
E. G. McWILLIAM

Manager Department of Publicity and New Basiness of the Security
Trust & Savings Bank, Los Angeles, Cal.

The authorized statement of the condition of Los Angeles banks and trust companies, January 1st, tells more graphically than words what has taken place in banking circles of this city during the past year. The most notable item of this statement is the amount of deposits which show a gain of approximately $30,000,000 over the total deposits January 1, 1915, and marks a new high record for bank deposits in this city. One consolidation has taken place during the year, namely that of the Traders Bank with the California Savings and Commercial Bank, which was consummated during the month of December.

None of the State banks of Los Angeles have as yet entered the Federal Reserve system. While some of the National banks of the city have made use of the facilities of the Federal Reserve Bank at San Francisco and are enthusiastic in praise of its methods of transacting business, evidently the savings banks and trust companies, among which are to be found some of the largest institutions west of Chicago, have as yet been unable to make up their minds to become members.

State Institutions and Federal Reserve System Looking at it from a purely selfish standpoint, if from no other, there are at least two good reasons why State institutions should desire membership in Federal Reserve banks, provided same may be brought about without the sacrifice of other overshadowing privileges now enjoyed. First-because the Federal Reserve banks provide a medium for obtaining currency whenever it is needed, either for paying depositors or for commercial demands, and second-because sooner or later as the public becomes more and more familiar with the general term "Federal Reserve bank" without seeking further information upon the subject, there will be a growing tendency upon the part of the public to discriminate in favor of those banks known to be members of the system. This is borne out by the fact that many people now believe that in some way the Government

is responsible for their deposits in National banks because of the use of the work "National."

However, there still seems to exist a number of conditions which apparently State banks generally cannot see their way clear to accept and one at least which overshadows all the rest and which, unless disposed of definitely, will forever tend to keep State banks out of the sys

tem.

Space will not permit of a discussion of all of the conditions of membership to which State banks object and in fact it is possible that said banks would not be entirely unanimous in all of their objections. However, the one main obstacle to membership which confronts all State banks, is the fact that they are invited to join the Federal Reserve system under regulations which are constantly subject to change and addition, coupled with the possibility, remote though it be, of politics controlling the Federal Reserve Board through the fact that each new President has it in his power to appoint a majority of that board.

National banks, while compelled to join, did so with a definite knowledge of the conditions under which they joined and which were set forth in the Act and could only be amended by Congress. It is true that it was left to the Reserve Board to construe certain sections, but there was no doubt as to the main conditions of membership.

Collection and Rediscounting Facilities No

Inducement

For a very great many State institutions the collection features of the Act, the rediscounting privileges and the privilege of selling certain commercial paper to the Reserve bank hold little inducement, as little of the business of these institutions is commercial, therefore the only reasons. for membership which would appeal to such institutions are those mentionednamely, being able to get money when it is needed and the possible prestige of being known as a "member bank," besides the pa

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triotic desire to help make the system a success. However, to accomplish even these most desirable objects, no important State bank can afford to submit its business to the uncertain exercise of such broad and indefinite power which the Federal Reserve Act has placed in the hands of a constantly changing and politically controlled body.

The spirit of patriotism permeates the State banks of our country in fully as large measure as any other class of banks, business or profession, and State banks earnestly desire to become part of a unified banking system. However, these banks have played a most important part in the development of their respective communities; and in affiliating with the new system they would be false to their trust if they relinquished any of the functions which the commercial and real estate interests of their communities have been educated to expect these banks to perform.

Prosperous Year for Spokane & Eastern Trust Company

The Spokane & Eastern Trust Company, which completed twenty-five years of service recently, experienced exceptional growth in all departments during 1915. A comparative statement under date of January 5, 1916, shows total deposits of $10,002,458, the highest figure in the history of the company, including individual deposits of $3.430,189; bank deposits $3,061,095 and savings deposits of $2,588,496. Total cash on hand and in banks is $3,565,461 and loans aggregate $5,137,952 with combined resources over $15,000,000. These figures show substantial gains over those of a year ago.

An Army of Fifty-six Thousand Depositors The condensed January 1st statement of the German-American Trust and Savings Bank of Los Angeles, Cal., shows aggregate resources of $22,460.355, with deposits of $20,133,493, representing separate deposit accounts of 56,000. The capital is $1,000,000, surplus $1,000,000 and undivided profits $308,973.

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A Suggestion

A bank、 using National Safety Paper may properly call its customers' attention to the service it is rendering, and impress upon them the fact

that checks are money.

Ask your lithographer, printer or stationer for checks on National Safety Paper, the logical check-paper. Or write us for samples.

George La Monte & Son

Founded 1871

35 Nassau St New York

REMARKABLE EXPANSION OF BANKING POWER IN
NEW YORK CITY

BANK AND TRUST COMPANY SHARES REFLECT INCREASED
EARNING CAPACITY

JOHN H. MacMURDY

Manager Bank and Trust Company Stock Department of Mann, Bill & Company,
Members New York Stock Exchange

The year just passed has been in many respects the most remarkable in the history of the banks and trust companies of the United States, and especially of those institutions located in the city of New York.

When the war broke out, and secuties of every description became practically unsalable at anything approaching fair prices, the financial institutions all over the country were confronted with big losses in their bond holdings, and were forced to write down these securities on their books to low valuations. England had practically established an embargo against foreign commerce, and all business of an international character came to an abrupt standstill, while domestic business was still in the doldrums. Money rates were high, but with the paralysis of business the banking institutions were not making money. The outlook for holders of bank and trust company stocks was anything but encouraging.

Extraordinary Gains in Bank and Trust
Company Deposits

Later, however, after the "panicky" conditions brought about by the war had subsided, the situation began to assume a different aspect. The New York Stock Exchange was again opened for business, money rates declined, security values soon began to rise, and the inventory losses since July 30, 1914, were practically wiped out. Today the situation is entirely changed. Financial operations on gigantic scale, which had hitherto been undertaken abroad, mainly in London, were negotiated in New York.

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With the Federal Reserve Act in full operation, and the banks in possession of steadily increasing deposits, this country was in a position to finance and furnish to Europe vast quantities of war munitions, food stuffs and manufactured articles of every description, until, at the end of the year 1915 an unprecedented growth of $685,000,000 in deposits was shown by the trust companies of New York City alone,

the greatest increase in history in any one year. When we add to this a gain in deposits in the National banks of New York City, from October 31, 1914, to November 10, 1915, of over one billion of dollars we can form some idea of the strength of our financial position today. The gains shown by the National banks, to a large extent, included the transfer of deposits by interior banks to New York, and reflected the very unusual credit operations in connection with the export movement.

Good Earnings by Banks and Trust Companies

Substantial increases in earnings and surplus have been made by the banks and trust companies in spite of the low level of interest rates for money which have throughout the entire year prevailed. The average earnings for the year of the New York City banks and trust companies based on capital, were:

Trust Companies National Banks State Banks 17.46% 19.1%

30.4%

Average earnings based on capital and surplus were: Trust Companies. National Banks State Banks 7.35% 6.3% 4.6% An increase in surplus was shown by 14 trust companies, 22 National banks and 16 State banks. Dividends on trust company stocks averaged 20 per cent.; on National banks 11.7 per cent. The cash reserve position has gained $46,000,000 in spite of the large increase in deposit liabilities, due in a large measure gold imports amounting to $450,000,000.

Bank and Trust Company Stock Values
Enhanced

to

The prosperity enjoyed by our financial institutions has naturally found reflection in an increased value for their stocks, and in many instances in extra cash or stock dividends. The following table shows that the stocks of 21 trust companies, used for comparison, had increased up to December 15, 1915, an average of about $50 per share:

THE SUPERIOR SAVINGS
AND TRUST COMPANY

ROCKEFELLER BUILDING
CLEVELAND, OHIO

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sion in New York City in bank clearings, showing increases of 32.9 per cent. over 1914, due in a great measure to the extension in ordinary business, but attributable also to the very great activity in the financial markets, sales on the Stock Exchange alone being about $10,000,000,000 in excess of the previous year, with bond sales showing an increase of some $450,000,000. With this remarkable condition prevailing and likely to continue, the outlook for the year is decidedly brilliant, and the end of 1916 should show an even greater record of earnings for both trust companies and banks and a corresponding increase in the values of the stocks of both classes of institutions, particularly of the trust companies.

Excellent Statement by Hibernia Bank &
Trust Co., New Orleans

Aggregate resources of $22,998,561 are shown in the December 31, 1915 statement of the Hibernia Bank and Trust Company of New Orleans, including loans and discounts of $12,349,376; cash on hand and in banks, $5,483,114; bonds and stocks $3,641,024; banking house and other real estate, $1,525,046. The deposits amount to $19,292,878 with capital and surplus of $3,500,000 and undivided profits of $123,182.

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