Evening star., 1932-10-03
TRUST FUNDS SAFE
DURING DEPRESSION
Official Bank Records Show
Customers Assets Were
Well Protected.
BY EDWARD C. STONE.

trust funds in the hands of banks and
trust companies during the depression
even in cases of suspensions, Francis H.
Sisson, vice president Guaranty Trust
Co. New York City, showed in an
address before the tenth regional trust
conference Of the Pacific Coast and
Rocky Mountain States held under the
auspices of the trust division, American
Bankers Association. in Los Angeles.
Perhaps one of the most important
lessons in the practice of the trust busi-
ness which the depression has tested
and proved is that which relates to the
factor Of safety in the handling Of
trust funds" Mr.. Sisson said. Safety
is the greatest OF the cardinal virtues
of the services rendered the public by
trust companies and the trust depart
ments of banks Every trust man
stoutly affirmS this, but it took the un-
fortunate conditions from which we
are recovering to bring this fact home
to the public. Public appreciation of
and confidence in the trust institutions
of this country has grown and become
intensified in the face of uninformed and
unjust attacks which have bsen made
on all sides.
Whenever a bank has closed there
have been critics to point the finger
of doubt at the safety of trust funds.
The truly satisfying record of trust
companies and trust departments of
banks during tie dark days Of the
depression cannot be described or un-
derstood without resort to figures Take
the year 1881. one, OF an unusually
large number of bank suspensions, dur
ing which 2,298 banks and trust COM
panies were closed. What of the trust
assets of the banks suspended? The
records of the controller of the cur
rency and State banking commissioners
show that, of those banks suspended,
only one in seven was trust institu-
ton. Trust funds held by the sus-
pended institutions were, with few ex-
ceptions, comparatively small and the
trust assets involved were fully pro-
tected, so no loss resulted to the bene-
ficiaries.
Perhaps the most widely publicised
bank closing was that of the Bank Of
the United States of New York Decem-
ber, 1880. 1t had in its trust depart
ment S25,G00000 in collateral S29 ,00O,-
600 in corporate bonds outstanding and
100000 in cash. Shortly after suspen-
sion the bank examiner stated: We
have segregated all the trust assets and
are performing all trust functions under
the various trust appointments as evi-
cenced by lndentureS, wills. agreements
and other documents. The net result
Is that the closing of the bank did not
AFFECT in any manner the administra-
ton, execution or safety of the trusts
of its clients
There is the record. The safety Of
trust funds has been tested in the cru
chile Of depression. Strong and unbend-
ing it has withstood the test Such is
the lesson of adversely. Now firm on
its foundations of security the American
institution of trust service faces the
future. confident in its ability to serve
ana preserve"
Women at A. B. A. Convention.
The Association of Bank Women, in
which Washington bank women are
deeply interested, is meeting in Los An
vention, which got under way there
today. The association is represented
in every State in the Union and In
practically every important city.
The purpose Of the Association of
Bank Women is to bring together
women executives engaged in the pro-
fession of banking for mutual exchange
of IDEAS and experiences in order that
practical benefits may be derived there
from: to promote the interests of its
members and to forward the interests
of all women in the banking profession:
to uphold the dignity and integrity of
women associated with or employed by
banks.
The membership Of the association
includes women holding executive posi-
tions in national, State and savings
banks and trust companies. Their work
is diversified and their responsibilities
vary from junior officers to presidents
of banks.
president of the association during the
past year, visited Washington shortly
after her election year ago, and was
paid special honors by the women con-
nected with local banks.
Exports Turn Trade Balance.
Increased exports to 13 countries en-
abled the United States to strike a
favorable foreign trade balance for
S91,110,475 for imports, the Commerce
Department announced today.
Exports. in the way of comparison.
for August, 1881, were valued at s164,-
80e.H40 and imports were valued at
s166, 6,678,728.
Countries in which increases occurred
in exports for August over July were
Czechoslovakia, Denmark, France, Ger
many, Greece. Irish Free State, Italy.
Norway, Mexico, Brazil British India
and New Zealand.
ton Gas Light 6s, series A, opened the
weeks business on the local stock eX-
change both bonds selling at 9934.
Capital Traction SIS appeared on the
board in two $1,000 transfers, both
made ct 81. the same as other recent
sales in this issue.
Georgetown Gas IS figured in $500
sale ct 101l l2, quotations on this issue
also being practically unchanged from
the last sale.
Only one stock appeared on the board
today, 10 shares of Potomac Electric
Power 512 per cent preferred stock
moving at 10A34.
Riggs National and American Security
& Trust have been added to the list,
CT securities now being quoted with
cut the dividends which were recently
voted by both banks. Several local
banks paid their regular dividends on
October !.
Cleaned in Financial District.
Secretary Mills will addesss the Amer
lean Bankers Association tomorrow
night at Los Angeles at special session.
He is expected to discuss the recon-
struction program and the bankers
relation to it.
David Lawrence, editor of the United
States Daily, will address the New York
bUIu SluD aI It's iiloIlIliiy uleetuiB 10
morrow noon at the Bankers Club. He
will speak on bonds and the general
financial outlook.
H. H. Mckee, president of the Ma
tional Capital Bank; Joshua Evans, jr.
head of the District National; Eliot H
Thomson, publicity manager of the
Washington Loan & Trust Co.. and
Charles E. Howe, treasurer of the Amer
lean Security 8, Trust Co, were among
the special guests at the annual BAN
quet of the Morris Plan Bankers As
sociation, Saturday night at the Shore.
ham.
Local brokers express cautious opti-
mism over the outlook for the stock
market in the near future. They con-