The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-03-16
CAUSE new ERA IN
BANKING METHODS
Growth of Trust Companies
Without Parallel in History
of American Banking.
GREAT GAINS IN DEPOSITS
Latest Reports Show Resources
of Five and Half Billion
Dollars.

Valuable statistics. bearing upon the
banking and economical development
OF the country. which have been re-
Gently compiled, show that the trust
companies have acquired banking re-
sources amounting TO s5,49o.5i0. 900.
and exceeded only by the national and
State banks combined. Twenty-Five
years ago the trust compa mics OF tho
United states numbered only 49,, sand
their combined banking resources
amounted TO $44l.coo,ooC. They have
increased. both in number and in the
volume OF their business. At greater
pace than any other type OF banking
or financial organization. In fact.
there has been no deVelopn ent in the
history Of American banking which
offers any parallel TO the growth OF
trust companies. Nor is the reason far
10 seek. II has been truly stated that
the modern trust company" meets all
the banking and rduciary requirements
in communities, large or small. more
readily than any other class OF finan-
oial institution state laws govern
ing trust companies have made due al
lowance for local conditions The re-
suit has been TO make trust companies
most influential in helping TO develop
ness enterprise and in legitimate fnan-
Sial operations.
IN some sections OF the country and
especially In smaller communities the
trust rnpanies devote most attention
10 Offering banking facilities Relia-
hle statistics have also been obtained
10 show that the enormous gains in
banking deposits reported by trust
companies have not been secured bv
sncroae ming upon the, operations OF
national or State banks OF discount
National and state banks have con-
tinued and increased their relative ex-
pansion since trust companies came
into the field. and the latter are rec
oEnized as necessary in aTordinc ac-
comnodations which other types of
banking institutions do not extend.
The banking facilities offered by
trust companies differ in many respects
from those offered by either national
or State banks of discount \ large
part OF the funds OF corporations and
individuals or business houses. where
no commercial loans are required come
to the trust companies. Among the
larger and older trust companies and
IN certain States no effort is made to
make loans based on numerical paper
or 10 grant discounts. In Il number of
States. however. the laws permit trust
companies TO either negotiate CONNER
cfal loans or purchase commercial ma
per. The tendency is becoming more
pronounced. however TO leave such
business To the national and State
hanks of discount
The great increase in banking re
sources of trust companies is also due
IN large measure TO the many other
services which they render 10 clients
and is an outgrowth Of such business
IL corporation executes a mortgage
10 issue new bonds. II almost always
names trust company as trustee \
ar
eff Civilizations as they mature. and
balances must be maintained TO meet
coupon and dividend payments.
Such FUNDS are best carried by the
trust companies and the corporation
does not lose any interest premiums
for idle funds. There are numerous
instances where banking facilities are
called for In connection with the ap-
polntment of trust companies as exc
cutor. trustee under will. as admins
TRAITOR OF estates, guardian. or as trus-
tee under corporation mortgages and
RECOMMENDATIONS /, stands TO reason
that facilities can best be offered by
one institution Than in keeping separ-
ate accounts in different banks
Another reason why trust companies
have become so successful as bank
Ing institutions is the spirit OF cour-
tesy and accommodation which pre-
walls IN al! successful coinpa MES Tho
up-to-date trust Company manage
ment makes depositorS. whether they
have large OF SINAI! accounts. feel that
tneN are entitled 10 every courtesy and
confederation. The officers are not
buried in back rooms. but have their
desks so as 70 he accessible to all
patrons In fact, trust companies have
made banking popular ana offer facili.
ties which truly eutitle them 10 the
resignation AS tine most modern me-
chahism of banking and finance"