New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-09-29
Guaranty Trust
To Join Federal
Reserve System
Other Large State Banks
Here Expected to Fol-
low Suit

The Guaranty Trust Company has
applied for admission to the Federal
Reserve system. In making this an
nouncement yesterday Charles II.
Sabin. president of the bank, said that
this step had been taken in recognition
of the importance of concentrating the
financial strength of the country and
the desirability of. the closest possible
cooperation among all banking institu-
tons at this time.
A material contribution will be made
toward the mobilization Of national
credit for war purposes by the entrance
of this trust company into the reserve
system. as Il is the largest institution
of it's kind in the world, with resources
of more than 100000 900 and deposits
in excess Of $500 100000. The directors
have considered the advisability Of join
inc the reserve system ever since tho
amendment to the Federal reserve act
was adopted about three months ago,
permitting state banking institutions
and trust companies to. become mem
bers of the system without rellnqulsh-
ing the rights granted to them under
their respective charters. All OF tne
trust companies, under this amend
ment, cen continue their business along
existing lines after joining the reserve
system.
A Patriotic Move
Tho action Of the directors, II was
said was fastened by the feeling that
anv aid the company could render In
modifying the nations resources In
the present war crisis was considered
in the light OF patriotic duty.
W. P. G. Harding, governor OF the
Federal Reserve Board, in his address
before the American Bankers Assocla-
ton at Atlantic City on wednesday
told the representatives of state banks
and trust companies that Congress and
the Federal Reserve Board had taken
every possible step 70 make attractive
the terms and conditions OF admission
into the system, and that now there
was no sound reason why eligible insti-
tutions should refuse to JOIN.
He called attention to the fact that
this country is passing through one OF
the most critical periods Of its exist
ence, that the financing OF the wal
was requiring 18,000.00O,0OO for the
first year, or at the rate Of S5O,OOO,OoC
a day. and that in the circumstances II
was highly desirable the banking ma.
chinery of the nation be unified and
strengthened by the inclusion of the
state banks and trust companies in the
reserve system.
Mr.. Harding asserted that besides
the 1900 national banks, thus far only
eighty-four institutions had joined out
of q total of 10000 banks operating
under state laws, of which total about
1000 to 5000 were eligible. These
banks and trust companies he said had
combined resources of billion and @
quarter dollars and predicted that BY
the middle of November enough state
institutions would have Joined the sys'
TEN to bring the total resources up tc
two and one-half billion dollars.
Others Expected to Join
Other large state banks in this city
are expected TO follow the lead of the
Guaranty Trust Company. Among the
more important banks here Of thi:
class, besides the Guaranty, are the
Bankers Trust Company, the United
States Trust Company, the Contra
Trust Company, the New York Trust
Company, the Metropolitan Trust Com
pany, the Union Trust Company, the
Columbia Trust Company and the Aston
Trust Company.
The Broadway Trust Company Joined
the system in June, 1914. 1t was among
the first to enter The Corn Exchange
Bank, with deposits of more than $780,,
100000 and thirty-six branches, an,
nounced its decision to join about q
Near later.