Evening star., 1932-01-09
BANKS ADVANCING
IN TRUST FIELD
Controller Pole Reports Rapid
Progress in National Sys-
tenn in Year.

Substantial and steady progress
marked the activities of national banks
throughout. the United States In the
administration of trusts In 1881. The
statistics for this function complied as
of June 80. 1881, said Controller Pole
In his annual report to Congress, re-
vealed that 2,407 national banks had
authority 10 exercise trust powers, with
o combined capital OF s1,349 1893 ,246
and banking resources Of s22,6lS,549,-
| 942, representing IS per cent Of the
number, 80 per cent of the capital and
| 80 per cent of the resources Of all banks
in the national banking system.
Trust departments had been estab-
lished by 1855 of these banks and 102,-
| 987 trusts were being administered with
| individual trust assets aggregating s5,-
24l ,s9i, ,392. Seven hundred and eighty
| two Of these banks were also acting as
trustees for bond and note issues ag-
gregating S1o,719,84s,4 ,426.
The growing popularity with the
American public OF the corporate n
duciary in the settlement of estates and
| the administration OF trusts Is Illus
trated by the fact that compared with
June 30, 1880, the survey revealed
net increase of 1854, or 1875 per cent
more trusts under administration in
1881 than in 1880, while the individual
i trust assets under administration in
creased $768, ,9S0,466, or II per cent over
1880.
Growth In Past Five Years.
The continued growth of the ndu-
ciary activities Of the banks In the ma
tional banking system and the increas-
| ing popularity Of this important branch
Of banking service are even more i'm
pressive when comparisons are made
with the activities OF national banks In
this field just five years ago. In June.
| 1925, national banks numbering 2,038
had authority to exercise trust powers
with 1,l04 actively engaged In admin
istering trusts. These banks were then
acting in q fiduciary capacity for 7s,o53
trusts with individual trust assets Of
1922, ,328,677, and were acting as trus-
tees for bond and note issues Of s2,4e3,-
553,316. The figures compiled as OF
June 80, 1881. represent for the Ave-
year period, an increase in the number
Of national banks authorized to admin
lister trusts of 381, or 1873 per cent; an
| increase In the number of banks operat-
ing trust departments Of T52, or 68.l
per cent; an increase IN the number of
trusts being administered Of 1884, or
1853 per cent; an increase in individ-
uai trust assets of s4,319,6 9,662,715, or
1888 per cent; and an increase In the
volume of bond and note issues cut
standing for which these banks were
acting as trustees of ss,2S6,11o, or
1851 per cent.
Gross Earnings Increase.
That the growth in earnings from
| trust department operations has Kept
| pace with the increased volume OF trust
| assets which have been intrusted to the
| administration Of the banks In the ma
1 tional banking system Is revealed by the
| fact that during the fiscal year ended
June 80, 1881. gross earnings aggregat-
ing sac, ,88s,o 600 were reported as against
| s22, 1855, 600 in 1899, representing gain
Of s3,s23, ,oe8, or 17.2 per cent, ever
| 1880. and an increase Of $1s,433, 900, or
1888 per cent, over 1928.
The impressive Endorsement Of the
| corporate ffduciary as the conservater
and administrator by the insuring pub
| lie of policy proceeds LIS revealed by the
| substantial growth in the number of
institutions, and the volume of insurance
trusts created during the past nscal
year, at the end of which 213 national
banks were acting as trustees under 554
agreements involving the administration
| OI S14,oof,So1 III pIOCceQ1 ItOfA ll5uf-
ance policies, while 764 national banks
| had been named as trustees under
| 1855 insurance trust agreements net
| operative supported by insurance policies
with face value aggregating sT3x,-
$50, o,79o. Compared with 1880, these
| figures represented an increase of 80
per cent In the number Of national
| banks administering insurance trusts;
an increase OF 3s.s per cent In the
| number and sos per cent In the vel
| ume Of insurance trust assets undsr
administration.
Huge Sums Involved.
The number of national banks which
had been named trustees under insur-
ance trust agreements supported by In
surance policies not yet rnatured and
operative increased during the year 1913
per cent; the number Of insurance trust
| agreements not operative naming ma
tional banks trustees increased 30.3 per
cent, while the volume Of insurance
represented by the face value of the
| policies trusteed under those agreements
increased 25.2 per cent over 1880.
On June 80, 1881, 262 branches OF
| national banks we're actively engaged In
the administration Of 1924 trusts, with
| Individual trust assets aggresating
81 ,015, ,325,865, and were acting as
trustees for bond and nets issues out
standing amounting to $As2, ,e5s,s ,ss1,
Controller Pole concludes.