Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1920-12-21
S70,0O0,0OOPROF|T
IS MADE IN 1920 BY
BANKS OF WALL ST.
Owing to Hard Times.
However, Bonuses Will
Suffer.
NATIONAL PARK MAKES
OVER HALF ON CAPITAL
Chase Institution Will Give To.
tai of 80 Per Cent in
Gratuities.
WILL AVERAGE 10 PER GENT
National City to Award No Specific
Honorarium, % Per Cent Being
Part of Remuneration.
WILL AVERAGE 10 PER GENT
National City to Award No Specific
Honorarium, 20 Per Cent Being
Part of Remuneration.
nY ROBERT J. nENpEn.

Ne" 1ORk, Dec. 20.-This will ba
almost a S7o,OoO,OO0 profit year for
New York City's national banks. but
whiie the Christmas season finds these
great institutions boasting unprecc-
hented net earnings, it does not
bring commensurate hopes for en-
ployes' bonuses.
AS matter of fact, with increased
capitaliZations. Uncertainty over the
inturc. and substitutes for the bonus
idea among the banks, and the gem
eral lean times that have struck tho
brokerage houses. with the market
decline. Wall Street in general this
year iS back to an average to 10 per
cent Christmas bonus basis.
The lavish prodigality visited upon
the thousands OF employees along tho
street" at Christmas last year ia
being succeeded this year by n sharp
truSality. Whereas the great money
mart year ago had just completed
one OF the most remarkable bull
movements in generation and
money was as plentiful as dirt, the
same market this year has Just
weathered one of the severest strains
In years and money is scarce | Last
year was understood to have been n
slo,O00,oo0 bonus year for employees
In banks and brokerage houses. This
year probably will not be ablo to
boast, q million.
Average brought Down. ..s
But the average Is brought down
by the brokerage hou<,s and those
banking institutions which have sup
planted the bonus with some profit
sharing system. rather than by sny
falling off in bank earnings generally.
striking example OF the changed
brokerage situation is found In tho
case OF Decoppct & Doremus. big
brokers firm, that led the Donation
list by giving its employees n l35 per
cent bonus at Christmas last ye;.r.
but is paying around per cent ibis
year Morgan & Co, WAS accredited
with 100 per cent bonus TO it's en,-
ployes a year ago, but is not expected
to give so much by wide margin
this year. Other houses show as
great or greater reductions.
On the other hand. the banks.
trus; companies and other ins,itu-
tions not SO heavily affected by the
decline in the market will mete out
Christmas cheer in sizable checks.
The Guaranty Trust Company may
even Increase its profit sharing bo-
nus. about II per cent last year. in
addition to which the bank pays a
20 per cent high-cost- of living bonus.
The Bankers Trust will maintain
It's usna! bonus OF 5 per cent OF the
annual salary to each enploye. Tho
Chase National Bank will give its
usua; Christmas bonus of 10 per cent
OF the yearly salaries, in addition
to hiGh-cost- -of-livinS bonus of %
per cent. The National CITY Bank
Will give no specific Christmas bonus.
as the customary % per cent YEARLY
bonus was made permanent part OF
employees salaries the first of this
year.
Substitute Pront-Shnrinc.
Many or the big financial institu-
tions-both banks and trust compa-
nies--have eliminated the Christmas
bonus this year, substituting for tho
custom system of OF profit sharing.
y year ago the reason why Wall
street was able TO give such generous
bonuses to it's employees on Christmas
was easily shown in computation Of
the huge profits made by some OF
the leading banks OF New York for
the year 1919. as follows:
Chase National ST stn ooo
Bank of Commerce SsS SSS
Ea,;onai .aiI'i4mai E;i ............. 7,l7s.000
SSa,ionai CITY ............., 5,39G,OOO
National Park ..... I'77i ma
Mechanics and Metals .. 2'as5'006
Irving National 7Si GSo
Liberty National 1880 oo0
American Exchange National I.a39' C)00
AS TO what these profits meant to
the banks, the National Park Bank.
fer example. earned 95 per cent On
its capital during 1919.
Profits OF 1920.
This year the profits OF these same
banks show gains in some cases and
falling off in others. The earnings
OF the National Park Bank. for ex-
ample. fell to G9.l per cent on it's
capital during 1920.
The same institutions listed above
show the following 1920 prcilts, ac-
cordins TO the latest available fg-
ures:
Ennse i;n,,S. :, Nat,omai t :...........s 100000
First National .. Ss97 G06
National City .. l30Oo. .f,00
National Park .... 37gS O60
Mechanics and Metals ..... ssiiS.SoS ssiS..SSS
Irving National .... 1921 OOO
Liberty National ... l437.000
American Exchange Natl. $4,000
The National City Bank showed tho
largest earnings. but its capltaliza-
,ion OF $io.o00.oo0 is $4,000, 900 great
er than that OF any other institution.
and its percentag cot earnings over
capital invested. thtrcfore. Is only
4?.5 per cent. which is Rot 50 great
'as q number of institutions. Tho First
capitalization and nearly tE.900, ,0o8
',r"t cPrntnes. led All the Ns,yS pnrts