The New York herald., 1921-06-28
The Federal Reserve System-Our Financial SfetyVa

Banking in the United States today far sounder
and thoroughly economic foundation than any pre-
vious time in the country history the part which the Amer
can people will assuredy play in the important financing
operations of the world henceforth will find the counys
banking system thoroughly able adequately do its share
Facilities of The Trust Department
ANOTHER development ofAmerican banking bywhich
national banks have been able round out their facil-
es their clients has been the amendment to the Reserve
Act permitting national banks exercise powers Dur
years there has been marked inclination look
to banks for the performance of powers rather than
place dependence individuals and the rapidly growing
desire extend the benefits of thrift and savings beyond the
lhetes of their makes this added provision of
tonal banking service of the greatest value.
Itis clear that bank with its existing facilities for the
safe and economical conservation of funds offers ideal equip
ment for the exercise of powers that desiring
any Of the facilities conferred by law
have been quick avail themselves Of the oppor-
tunity offered under the Federal Reserve System
One of the strongest incentives toward using national
banks for this purpose has been the knowledge that all
administered by them would be under Federal super
ona banks in the administration have been drawn
Federal Reserve Board they that all the duties
undertaken by the banks in their departments will
ceve experienced and competent and will be at
all times under the direct wachfuness and examination of
the United States Government These regulations include:
Provision that the work of the Trust Department. be
performed entirely separately from that of the banks
other work
2-Provson that securities and held in trust
be kept segregated from the securities owned BY the
bank, and be in the joint custody of more of
the banks officers specially designated by the Board
of Directors
3-Provision calculated to thoroughly guard the invest
of funds held in
4-Provsion that examiners designated either by the
Comptroller of the Currency or the Federal Reserve
Board make periodic audits of the Trust Depart
ments cash, securities, accounts and investments.
The right establish Trust Department means that
national bank able extend its clients service
that goes beyond the span of single life may
tee under the will of Client and thus extend his
and his heirs the business judgment financial re-
Sponsibity which the client accustomed to rely
during life.
Besides the services which the Trust Departments of
national banks may perform for individuals there are many
services peculiar to corporations which be performed
These services because of the compexty of mod
ern business, are practically indispensable.
The many vicudes surrounding the life of the ndi-
vidua trustee practically when bank becomes
the trustee AS executor trustee other per-
mitted by law available every business day of
every year Its financial responsibility stands final safe
guard for the property entrusted its Thus with the
rapidly growing of trusts banks peculiar fitness to
serve has come to be generally recognized and accepted Its
integrity and ability in financial matters and its constant
experience financial manager have all combined give
bank unusual equipment for making easily
safely and economically available.