- - Registry No. 1707-02 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

. 

FOR 

BANKERS 

AS APPROVED ON OCTOBER 3, 1933 

BY 

PRESIDENT ROOSEVELT 

n - -- u - ,..--- A\\ • 

,oerr°"' 

~-\.~. 0~ . Executive Order 

2. Letter of Transmittal 

3. Text of Code 

4. Schedule A 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON : 1933 

I I 

For sale by lhe Superintendent of Documents, Washintton, D.C. - - - - - - • Price 5 cents 
This publication is for sale by the Superintendent of Documents, Government 

Printing Office, Washington, D.C., and by district offices of the Bureau of 

Foreign and Domestic Commerce. 

DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE 

Atlanta, Ga. : 504 Post Office Building. 

Birmingham, Ala. : 257 Federal Building. 

Boston, Mass. : 1801 Customhouse. 

Buffalo, N.Y.: Chamber of Commerce Building. 

Charleston, S.C.: Chamber of Commerce Building. 

Chicago, Ill.: Suite 1706, 201 North Wells Street. 

Cleveland, Ohio : Chamber of Commerce. Dallas, Tex. : Chamber of Commerce Building. 

Detroit, Uich.: 2213 First National Bank Building. 

Hou ton, Tex. : Chamber of Commerce Building. 

Indianapolis, Ind. : Chamber of Commerce Building. 

Jacksonville, Fla.: Chamber of Commerce Building. 

Kansas City, Mo.: 1028 Baltimore Avenue. 

Los Angeles, Calif.: 1163 South Broadway. 

Louisville, Ky.: Room 405, 421 West Market Street. 

Memphis, Tenn.: 266 South Water Street. 

Minneapolis, Minn. : 213 Federal Building. 

New Orleans, La.: Room 225-A, Customl10use. · New York, N.Y.: 734 Customhouse. 

Norfolk, Va.: 4.06 Ea~t Plume Street. 

Philadelphia, Pa.: Room 812, 20 South Fifteenth Street. 

Pittsburgh, Pa.: Chamber of Commerce Building. 

Portland, Oreg. : 215 New Post Office Building. 

St. Louis, Mo.: 506 Olive Street. 

San Francisco, Calif. : 310 Customhouse. 

Seattle, Wash.: 1406 Vance Building. 

(II) 
EXECUTIVE ORDER 

CODE OF FAIR COMPETITION FOR BANKERS 

An application having been duly made, pursuant to and in full 

compliance with the provisions of Title I of the National Industrial 

Recovery Act, approved June 16, 1933, for my approval of a Bankers' Code of Fair Competition, and hearings having been held thereon and the Administrator having rendered his report containing an 

analysis of the said Code of Fair Competition, together with his 

recommendations and findings with respect thereto, and the Administrator having found that the said Code of Fair Competition complies in all respects with the pertinent provisions of Title I of said 

Act and that the requirements of clauses (1) and (2) of subsection 

(a) of Section 3 of said Act have been met: 

Now, therefore, I, Franklin D. Roosevelt, President of the United 

States, pursuant to the authority vested in me by Title I of the 

National Industrial Recovery Act, approved June 16, 1933, and 

otherwise to adopt and a pp rove the report, recommendations, and 

findings of the Administrator, and do order that the said Code of 

Fair Competition be, and is hereby, approved. 

Approval recommended: 

HUGH s. JOHNSON' 

Administrator. 

THE vVHITE HousE, 

October 3, 1933. 

(ill) 

14904°-138-196-33 

FRANKLIN D. ROOSEVELT, 

President. 
OCTOBER 2, 1933. 

THE PRESIDENT, 

The 1V hite House. 

l\1Y DEAR MR. PRESIDENT: I have the honor to submit and recommend for your approval the Bankers' Code of Fair Competition. 

This Code was proposed by the American Banker ' Association, 

:founded in 1875. The association represents slightly more than 70 

percent of the total number of banks and more than 94 percent of 

the banking resources o:f the country. 1\1embership requirements 

therein impose no undue restrictions. 

The Bankers' Code of Fair Competition has the approval of the 

association, the several Advisory Boards of the National Recovery 

Administration, and the cooperation of officials of the Federal Reserve Bnard, the Treasury Department, and the Comptroller of the 

Currency's office. . 

No objector from nonmembers of the association appeared at the 

hearing, nor did any such nonmember file any objection to the code. 

However, representation on the code committee is provided in the 

code for such nonmember banks. 

A complete report is being transmitted herewith. Important features may be summarized as follows: 

(A) Reemployment a;nd wages.-Unquestionably, there has been a 

decided increase in both number of employees and their wages since 

the signing of the modification of the President's Reemployment 

Agreement, except in small country towns. Bank staffs have been 

held together as far as possible. Labor advisors stated that banks 

pay employees higher wages than are paid by industry generally. 

Nevertheless, with the desire to support the President's Recovery 

Program and to meet reasonably the request of labor, the bankers 

agreed to revisions of the code, principally to reduce the time of 

apprenticeship from 12 to 6 months and to confine this group of 

employees to approximately 5 percent of entire personnel, as against 

the prevailing 10 percent in leading centers. These concessions and 

the shortening of hours, both contained in the code, will bring about 

additional employment and higher wages. 

( B) F a.ir trade practices.-( 1) Uniform maxim um banking hours 

are provided for similar institutions in any given area. (2) Payment 

of interest on deposits by all banks is brought under the Banking Act 

of 1933 and the rules and regulations of the Federal Re erve Board. 

This provision should eliminate competitive bidding for deposits 

and thus enable the banks to invest more conservatively than in the 

past. (3) Service charges: These charges form a highly complicated 

phase of banking. I believe the Code Committee will be empowered 

more fully to handle these problems and to unify the practices thereunder than any other agency heretofore established. ( 4) Trust services: In e:ff ect this provision is designed as an ethical standard for 

trust institutions. 

I find that the code complies with the pertinent provisions of 

clauses (1) and (2), subsection (a) o:f section 3 of the National 

Industrial Recovery Act. 

Respectfully, 

(IV) 

HUGH s. JOHNSON' 

Ad/mini,strator. 
CODE OF FAIR COMPETITION FOR BANKERS 

PREAMBLE 

To effectuate the policy of Title I of the National Industrial Recovery .Act during the period of emergency, the following provisions 

are established as a Code of Fair Competition for Banks: 

ARTICLE I-DEFINITIONS 

The term" bank" as used herein shall include all national banks, 

State banks, savings banks (except mutual savine;s banks), trust com• 

panies, and private bankers accepting deposits, 1n the United States 

proper. 

The terms "employee" or "banking employee" as used herein 

shall mean any person employed by a bank in any capacity in connection with its banking functions and operations. 

The term "United States proper" as used herein shall mean the 

forty-eight ( 48) States of the United States and the District of 

Columbia. 

The term ".Administrator" as used herein shall mean the National Recovery .Administrator. 

Population for the purposes of this code shall be determined by 

l'eference to the 1930 Federal Census. 

ARTICLE II-EFFECTIVE DATE 

The effective date of this Code except as specifically provided for 

hereinafter, shall be the second 1\1onday after its approval hy the 

President of the United States. 

ARTICLE III-GENERAL LABOR PROVISIONS 

Employers shall comply with the following provisions of Section 

7 (a) of Title I of the National Industrial Recovery Act: 

(1) Employees shall have the right to organize and bargain collectively through representatives of their own choosing and shall be 

free from the interference, restraint, or coercion of employers of 

labor, or their agents, in the designation of such representatives or 

in self-organization or in other concerted activities for the purpose 

of collective bargaining or other mutual aid or protection. 

(2) No employee and no one seeking employment shall be required as a condition of employment to join any company union 

or to refrain from joining, organizing, or assisting a labor organization of his own choosing. 

(3) Employers shall comply with the maximum hours of labor, 

minimum rates of pay, and other conditions of employment, approved or prescribed by the President. 

(1) 
2 

ARTICLE IV-CHILD LABOR 

On and after the effective date of this Code no person under 

sixteen (16) years of age shall be emploY.ed by any bank; provided, 

however, that where a State law prescribes a higher minimum age 

no person below the age specified by such State law shall be employed within such State. 

ARTICLE V-HouRs OF El\IPLOTIIENT 

(1) On and after the effective date of this Code no banking employee shall work or be permitted to work more than forty ( 40) 

hours per week averaged o,er a period of thirteen (13) consecutive 

weeks. 

(2) The maximum hours of employment prescribed in the foregoing paragraph shall be subject to the following exceptions: 

(a) In districts or sections of the country where the seasonal 

nature of commerce, agriculture, or industry making necessary the 

moving of some product within a limited period imposes upon 

banking facilities an unusual demand, employees of banks subject 

to such peak demand may work forty-eight (48) hours per week 

for a period not to exceed sixteen (16) consecutive weeks in any 

calendar year. Any such increase in hours of employment shall 

be reported monthly to the Banking Code Committee provided for 

in Article VII hereinafter. 

(b) All banking employees required to perform extra work or 

observe later hours in connection with periodic examination by Federal or State banking authorities, over which the bank has no control 

either as to the time of occurrence or as to the duration, shall be 

exempt during such periods from the limitations upon hours of 

employment prescribed in the foregoing paragraphs. 

( c) Employees in banking institutions employing not more than 

two (2) persons in addition to executive officers, in towns of less 

than 2,500 population, not :part of a larger trade area, and employees 

in a managerial or executive capacity or in any other capacity of 

distinction or sole responsibility (regardless of the location of the 

bank), who receive more than thirty-five (35) dollars per week, shall 

be exempt from the limitations upon hours of employment prescribed in the foregoing paragraphs. 

( d) These provisions for working hours shall not apply to night 

watchmen employed to safeguard the assets of the bank, who cannot with safety be shifted or changed during the night period. 

ARTICLE VI-WAGES 

(1) On and after the effective date of this Code no employee in 

cities of over 500,000 population, or in the immediate trade area of 

such cities, shall be paid less than at the rate of $15 per week; 

no employee in cities between 250 000 and 500 000 population, or in 

the immetiiate trade area of such cities shall be paid less than at the 

rate of $14.50 per week· no emplo} ee in cities between 2 500 and 

250,000 po:pulation, or in the immediate trade area of such cities, 

shall be paid less than at the rate of $14 per week. In towns of less 
3 

than 2,500 population the wages of all classes of empl_oyees shall ~e 

increased by not less than twenty (20) percent, provided that this 

shall not require an increase in wages to more than the rate of $12 

per week. 

(2) It is provided, however, that employees without previous 

banking experience or training employed as apprentices may be paid 

during a continuous period of not more than six ( 6) months at the 

rate of eighty (80) percent of the minimum wages pre,scribed in 

the foregoing paragraph. No bank shall include within the category of apprentices more than one such employee for every twenty, 

(20) employees or fraction thereof. 

(3) Em~loyers shall not reduce the compensatjon for employment now m excess of the minimum wages provided :for herein, notwithstanding )'that the hours worked in such employment may be 

hereby reduced. 

ARTICLE VII-ADMINISTRATION 

( 1) To effectuate further the policies of the National Industrial 

Recovery Act, a Banking Code Committee is hereby set up to act 

as a planning and fair-practice agency and to cooperate with the 

Administrator in the administration and enforcement o:f this Code. 

This Committee shall consist of fifteen representatives of the American Bankers Association, who shall be truly representative of the 

membership of the Association, a representative selected by fiftyone (51) percent (measured by total resources) of the nonmembers 

of the American Bankers Association, and a representative or representatives, without vote, appointed by the President of the United 

States. 

(2) The Banking Code Committee may from time to time present 

to the Administrator recommendations, based upon conditions in 

the banking business, which will tend to effectuate the operation of 

the provisions of this Code and the policy of the National Industrial 

Recovery Act. Such recommendations shall, upon approval of the 

Administrator, after such public notice and hearing as he may prescribe, become operative as part of this Code. 

(3) The Banking Code Committee may, subject to the approval of 

the Administrator, require from all banlrs such reports as are necessary to effectuate the purposes of this Code, and shall upon its own 

initiative or upon complaint of any person affected make investigation as to the functioning and observance of any provision of the Code 

and report the results of such investjgation to the Administrator. 

( 4) The Banking Code Committee shall, subject to the approval 

of the Administrator, supervise the setting up of Regional Committees according to the following plans : 

(a) Where banks are now organized through State banking associations, city clearing-house associations, county groups, or otherwise, such organizations shall, with the approval of the Banking 

Code Committee, appoint a committee for the pur~ose of assisting 

the Administrator and the Banking Code Committee in the administration and enforcement of this Code within such local region. 

(b) Banks in regions or districts not now organized shall, within 

thirty (30) days after the effectiYe date of this Code, send duly 

! 
4 

qualified representatives to a joint meeting called for the :2urpose of 

organizing under the supervision of the Banking Code Committee 

a Regional Clearing House Association or such other committee 

along the lines of procedure set forth in the Manual of Organization and M:anagement of Regional Clearing House Associations compiled by the American Bankers Association. 

( c) Where such action hereinbef ore stipulated shall not have 

been taken within thirty (30) days after the effective date of this 

Code, the Banking Code Committee may set up through the State 

banking association or associations a Regional Committee or 

Committees. 

( 5) The Committees provided for in the preceding paragraphs 

shall assist the Administrator and the Banking Code Committee in 

the administration and enforcement of this Code within local areas 

and shall, subject to the approval of the Administrator and of the 

Banking Code Committee, adopt local rules and regulations governing competitive practices within local areas. 

( 6) The Administrator may from time to tin1e, after consultation 

with the Banking Code Committee, issue such administrative interpretations of the various provisions of this Code as are necessary to 

effectuate its purpose within the provisions of the National Industrial Recovery Act of 1933, and such interpretations shall become 

operative as a part of this Code. 

ARTICLE VIII-FAIR Th.ADE PRACTICES 

To effectuate the purposes of the National Industrial Recovery 

Act all banks shall comply with the following rul"es go-,erning fair 

competition in banking practices, which shall become effective sixty 

(60) days after the approval of this Code by the President of the 

United States : 

(1) Hours of brcn.kvng.-Within cities, trade areas, counties, or 

such other area as is covered by the regional clearing house, or other 

organized group, banking institutions of the same kind or character 

shall, subject to the approval of the Administrator, establish uniform 

maximum hours of banking operations, but any bank in such a group 

may observe shorter hours than the maximum established. (Banks 

having both commercial and savings accounts are to be construed 

as of the same character.) By hours of banking operations is meant 

the period during which the doors of the banking institution are 

open for the purpose of serving the public. It is not intended or 

required that all banks within a given area shall maintain uniform 

banking hours, but it is the express intention of this provision that 

all banking institutions of like kind and character shall maintain 

uniform maximum hours each with the other. The uniform hours 

so adopted shall not be less than those in effect in the majority of 

the banks within any given district prior to June 1, 1933, and if the 

hours of any bank are so reduced to conform with the majority, 

or if any bank observes shorter hours than the majority, then no 

such bank shall by reason of this fact reduce the number of its employees below the number employed at the time such reduction in 

hours is made. 
5 

(2) Interest.-Subject to the rules and regulations of the Federal 

Reserve Board with respect to maximum rates of interest to be 

paid on time and savings deposits and the method of calculation 

thereof, as prescribed in the Banking Act of 1933, all banks within 

grou_ps or districts hereinbefore referred to ( except investment 

bankin~ houses accepting deposits, which houses are subject to the 

Code or Fair Competition for Investment Bankers) shall maintain 

the same maximum rates of interest and the same method of calculation thereof upon deposits of like character, but this shall not be 

construed to require any bank to pay such maximum rates if it does 

not so desire. The Banking Act of 1933 (Section 11-B) provides 

that no bank which is a member of the Federal Reserve System 

may pay interest on demand deposits; the rules and regulations 

provided by clearing-house associations or other groups shall contain 

a stipulation that no interest is to be paid by any bank ( except investment banking houses accepting deposits, which houses are subject to the Code of Fair Competition for Investment Bankers) 

within such group, whether member or nonmember of the Federal 

Reserve System, on demand deposits, provided that nothing in 

these rules and regulations shall be in contravention of the permissive provisions of Section 11-B of the Banking Act of 1933. 

(3) Service charges.-Each clearing house, county association 

county group, or State bank association shall, subject to the approval 

of the Administrator, adopt rules fixing uniform service charges 

to be charged by banks within such district or group in accordance 

with the practice now in effect whereby services rendered by banks 

shall be compensated for either by adequate balances carried or by 

a scale of charges. The Federal Reserve Act prohibits member 

banks from making any exchange charge for remitting to the Federal Reserve Bank of their district for cash items, and since the 

Federal Reserve System provides a par clearance plan, exchange 

charges as such shall be left to the determination of each individual 

bank. 

( 4) Trust service.-Trust departments shall be operated in accordance with the provisions of the Statement of Principles of Trust 

Institutions, adopted by the Trust Division of, and approved by, the 

Executive Council of the American Bankers Association on April 6, 

1933. A statement of the~e principles is appended as Schedule A 

and made a part of this Code. 

ARTICLE IX-GENERAL PROVI8IONS 

(1) Membership in the American Bankers Association shall be 

open to all banks included within the provisions of this Code and 

said Association shall impose no inequitable restrictions upon admission to membership therein. 

(2) It is expressly provided that no provision of this Code shall 

be interpreted ?r applied o as to conflict in any way with any Federal 

or State banking law or any rule or order which has been or may 

be issued by the Federal Reserve Board, the Comptroller of the 

Currency, or by any State banking authority. . 

(3) This Code and all the provisions thereof are expressly made 

subject to the right of the President, in accordance with the pro-
6 

visions of Section 10 (b) of Title I of the National Industrial Recovery Act, from time to time to cancel or modify any order, approval, license, rule, or regulation issued under Title I of said Act, 

and specificall[ to the right of the President to cancel or modify 

his approval o this Code or any conditions imposed by him upon his 

approval thereof. · ( 4) Such other provisions of this Code as are not required to be 

included therein by the National Industrial Recovery Act may, with 

the approval of the President, be modified or eliminated as changes 

in the circumstances or experience may indicate. 

( 5) The provisions of this Code shall expire on the expiration date 

of Title I of the Act or on the earliest date prior thereto on which 

the President shall by proclamation, or the Congress shall by joint 

resolution, declare that the emergency recognized by Section I of 

the National Industrial Recovery Act has ended. 
SCHEDULE A 

A STATEMENT OF PRINCIPLES OF TRUST INSTITUTIONS · 

TRUST DIVISION AMERICAN BANKERS ASSOCIATION, 19SS 

FOREWORD 

This statement of principles has been formulated in order that 

the fundamental principles of institutions engaged in trust business 

may be restated and thereby become better understood and recognized by the public as well as by trust institutions themselves, and 

in order that it may serve as a guide for trust institutions. 

In the conduct of their business trusts institutions are governed 

by the cardinal principle that is common to all fiduciary relationships-namely, fidelity. Policies predicated upon this principle have 

for their objective its expression in terms of safety, good management, and personal service. Practices developed under these policies 

are designed to promote efficiency in administration and operation. 

The fact that the services performed by trust institutions have 

become an integral part of the social and economic structure of the 

United States makes the principles of such institutions a matter of 

public interest. 

R. M. SIMS, 

President Trust Division, 

A rnerican B anke1·s' Association. 

ARTICLE I. Defirdtion of Terms 

SEarroN 1. Trust institutions.-Trust institutions are corporations 

engaged in trust business under authority of law. They embrace not 

only trust companies that are engaged in trust business exclusively 

but also trust departments of other corporations. 

SEc. 2. Trust business.-Trust business is the business of settling 

estates, administering trusts, and performing agencies in all appropriate cases for individuals; partnerships; associations; business corporations; public, educational, social, recreational, and charitable 

institutions; and units of government. It is advisable that a trust 

jnsti.tution should limit the functions of its ~rust department to such 

serv1ces. · 

ARTICLE II. Acceptamce of Trust Business 

A trust institution is under no obligation, either moral or legal, to 

accept all business that is offered. 

SECTION 1. Personal trust business.-With respect to the acceptance of personal trust business, the two determining factors are 

(7) 
,,, 

8 

these: Is trust service needed, and can the service be rendered properly 1 In personal trusts and agencies the relationship is private and 

the trust institution is responsible to those only who have or may 

have a financial interest in the account. 

SEC. 2. Corporate trust business.-ln considering the acceptance 

of a corporate trust or agency the trust institution should be satisfied that the company concerned is in good standing and that the 

enterprise is of a proper nature. 

ARTICLE III.-Adminwtration of Trust Business 

SEOTION 1. Personal trusts.-In the administration of its personal 

trust business a trust institution should strive at all times to render 

unexceptionable business and financial service, but it should also be 

careful to render equally good personal service to beneficiaries. The 

.first duty of a trust institution is to carry out the wishes of the creator of a trust as expressed in the trust instrument. Sympathetic, 

tactful, personal relationships with immediate beneficiaries are essential to the performance of this duty, keeping in mind also the interests of ultimate beneficiaries. It should be the, policy of trust institutions that all personal trusts should be under the direct supervision 

of, and that beneficiaries should be brought into direct contact with, 

the administrative or senior officers of the trust department. 

SEc. 2. Confidential relationships.-Personal trust ser--vice is of a 

confidential nature and the confidences reposed in a trust department 

by a customer should never be revealed except when required by law. 

SEo. 3. Fundamental duties of trustees.-It is the duty of a trustee to administer a trust solely in the interest of the beneficiaries 

without permitting the intrusion of interests of the trustee or third 

parties that may in any way conflict with the interests of the trust; 

to keep and render accurate accounts with respect to the administration of the trust; to acquaint the beneficiaries with all material facts 

in connection with the trust; and, in administering the trust, to 

exercise the care a prudent man familiar with such matters would 

exercise as trustee of the property of others, adhering to the rule 

that the trustee is primarily a conserver. 

· SEo. 4. Corporate trust business.-In the administration of corporate trusts and agencies the trust institution should render the 

same fine quality of service as it renders in the administration of 

personal trusts and agencies. Promptness, accuracy, and protection 

are fundamental requirements of efficient corporate trust service. 

The terms of the trust instrument should be carried out with scrupulous care and with particular attention to the duties imposed therein 

upon the trustee for the protection of the security holder. 

ARTICLE IV. Operation of trust departments 

SEorroN 1. Separation of trust properties.-The properties of each 

trust should be kept separate from those of all other trusts and 

separate also from the properties of the trusts institution itself. 

SEc. 2. Investment of trust funds.-The investment function of a 

trustee is care and management of property, not mere safekeeping at 

one extreme or speculation at the other. A trust institution should 
9 

devote to its trust investments all the care and skill that it has or 

can reasonably acquire. The responsibility for the investment o-f 

trust funds should not be reposed in an individual officer or employee 

of a trust department. All investments should be made, retained, or 

sold only upon the authority of an investment committee composed 

of capable and experienced officers or directors of the institution. 

When the trust instrument definitely states the investment powers 

of the trustee, the terms of the instrument must be followed faithfully. If it should become unlawful or impossible or against public 

policy to follow literally the terms of the trust instrument, the 

trustee should promptly eek the guidance of the court about varying or interpreting the terms of the instrument and should not act on 

its own responsibility in this respect except in the face of an emergency, when the guidance of the court beforehand could not be 

obtained. If the trust instrument is silent about trust investments 

or if it expressly leaves the selection and retention of trust investments to the judgment and discretion of the trustee, the latter should 

be governed by considerations of the safety of principal and dependability of incorn.e and not by hope or expectation of unusual 

gain through speculation. However, a trustee should not be content with safety of principal alone to the disregard of the reasonable income requirements of the beneficiaries. 

It is a fundamental principle that a trustee should not have any 

personal financial interest, direct or indirect, in the trust investments, 

bought for or sold to the trusts of which it is trustee, and that it 

should not purchase for itself any securities or other property from 

any of its trusts. Accordingly, it follows that a trust institution 

should not buy for or sell to its estates or trusts any securities or 

other property in which it, or its affiliate, has any personal financial 

interest, and should not purchase for itself, or its affiliate, any securities or other property from its estates or trusts. 

ARTICLE V. Oompensaiion for Trust S ervice 

SECTION 1. A trust institution is entitled to reasonable compensation for its services. Compensation should be determ.ined on the 

basis of the cost of the service rendered and the responsibilities assumed. }.finimum fees in any community for trust services should be 

uniform and applied uniformly and impartially to all customers 

alike. 

ARTICLE VI. Pr01notional Eff'ort 

SECTION 1. Advertising.-A trust institution has the same right as 

any other business enterprise to advertise it: tru t services in appropriate way . Its advertis ments should be dignified and not 

oven,tate or overempha ize the qualifications of the trust institution . 'I here hould be no implication that legal services will be 

rendered. There houlcl be no reflection, expres eel or implied, upon 

other tru ·t institutions or indiviclual , and the acherti ements of all 

trust institution ·hould be mutually helpful. 

SEC. 2. Pe1·sonal rep'resentation.-The propriety of having personal 

representatives of trust departments is based upon the same principle 
10 

as that of advertising. Trust business is so individual and distinctive that the customer cannot always obtain from printed matter all 

he wishes to know about the protection and management the trust 

institution will give his estate and the services it will render his 

beneficiaries. 

SEC. 3. New trust department.-A corporation should not enter 

the trust field except with a :full appreciation of the responsibilities 

involved. A new trust department should be established only if 

there is enough potential trust business within the trade area of the 

institution to justify the proper personnel and equipment. 

SEc. 4. Entering corporate trust field.-Since the need :for trust 

and agency services to corporations, outside of the centers of population, is much more limited than is that o:f trust and agency services 

to individuals, a trust institution should hesitate to enter the corporate trust or agency field unless an actual demand for such services 

is e~dent, and the institution is specially equipped to render such 

service. 

ARTICLE VII. Relationships 

SECTION 1. With public.-Although a trust department is a distinctly private institution in its relations with its customers, it is 

affected with a public interest in its relations with the community. 

In its relations with the public a trust institution should be ready 

and willing to give :full in:fonnation about its own financial responsibility, its staff and equipment, and the safeguards thrown around 

trust business. 

SEC. 2. With bar.---Attorneys at law constitute a professional 

group that perform essential functions in relation to trust business, 

and have a community of interest with trust institutions in the common end o:f service to the public. The m.aintenance of harmonious 

relations between trust institutions and members of the bar is in 

the best interests of both, and of the public as well. It is a :fundamental principle of this relationship that trust institutions should 

not engage in the practice of law. 

SEc. 3. With life underwriters.-Life underwriters also constitute 

a group having a community of interest with trust institutions in 

the common purpose of public service. Cooperation between trust 

institutions and life underwriters is productive of the best mutual 

service to the public. It is a J?rinciple of this cooperation that trust 

institutions should not engage 1n the business of selling life insurance. 

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