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If the interest rate is 4 per cent, how much interest should be due January 1? Some banks would pay $5.67. How can that amount be obtained? Is the practice fair?

15. Why should a bank be limited to 20 per cent in investing in acceptances?

16. Why should the law limit the amount that an individual may deposit in a savings bank?

17. Why is the bank granted the right to refuse deposits? 18. What would be the objection to paying trustees a moderate fee for each meeting attended?

19. Can efficient men be obtained to serve as trustees of savings banks when there is no remuneration? Is the analogy to the directors of a big corporation fair?

20. Compare the average size of the stock and the mutual savings banks.

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Of the stock and the mutual savings banks, which have the higher percentage of real estate loans? What is the reason? In which type of bank does the depositor have the greater amount of protection?

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23. How do you explain the distribution of postal savings deposits among the different States?

24. Compare the total deposits in the postal savings system with those in the stock and mutual banks.

25. How can you justify the two-per-cent rate paid by the Government on postal savings?

26. Should the postal savings banks compete in rates with the other savings banks? Explain.

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reorganizing.

The regulation of trust companies is often less strict than for other banks-in making loans and in the amount and the character of reserves (some can count bonds as reserves).

Taxation of trust companies is often less than that of other banks.

5. Trust companies attract deposits by paying interest on

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Function of Trust Companies.

Execution of corporate trusts: trustee for corporate mortgage, fiscal agent, registrar of stock, transfer agent, manager of underwriting syndicate. They also help reorganizations, and act as depositories for stock.

Execution of individual trusts: executor, administrator, trustee under will or contract, guardian, curator, assignee, receiver, custodian for property in dispute.

Care of securities and valuables. d. Banking.

Special.

a. Life, title, and fidelity insurance; all except title insurance have become specialized.

Disadvantages of Trust Companies.

I. They fail from improper management.

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The lack of personal management results in only a min

imum return.

Individual trustees are often able men.

Advantage of the Trust Company as Given by Kirkbride

and Sterrett.

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It does not leave the country.

It does not imperil the trust by failure or dishonesty.
It has better experience and judgment in trust matters.
It does not neglect the work or turn it over to untrust-
worthy people.

It does not refuse to act from caprice or on the ground
of inexperience.

It can be consulted at all times.

It has no sympathies, antipathies or politics.

It will not resign.

It gets first chance at good securities and gets a good rate by buying in large quantities.

Summary of Reports of Condition of 1,474 Loan and Trust Companies in the United States at the Close of Business,

June 30, 1921.

From the Report of the Comptroller of the Currency for 1921, p. 140.

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Lawful reserve with Federal Reserve Bank or other reserve agents..

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$4, 274, 581, 000 2,541,.000

1,942, 676, 000 188, 873, 000 26, 163, 000 322,292,000 457, 922, 000 47, 148, 000 183, 617, 000

172, 717,000 562, 562, 000

8. 181,092,000

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Bills payable (including certificates of deposit representing money borrowed)..

Other liabilities..

Total liabilities.....

100, 951,000 132, 778, 000

173, 186, 000 534,992, 000

8, 181,092, 000

Materials on Chapter XI.

Advantages of the Trust Company.

A trust company is a corporation empowered to accept and execute all trusts recognized and permitted by law. It can be your guardian when you are under age; your agent or trustee when grown; your assignee or receiver; your faithful friend and adviser while you live, and your executor, administrator or testamentary trustee when you die. It can receive your securities or other property and give you a receipt therefor, collecting and forwarding you the interest thereon. It can be your general fiscal agent, to manage your property both real and personal; making leases, attending to repairs, etc.; and collecting interest and rents for you. It can invest the property which you may have accumulated for your family in the safest and most profitable manner, and when appointed executor it can store your will without cost to you in its fire- and burglar-proof vaults.

Some of the advantages of having a trust company act as executor are: Ample security.—A trust company generally has a capital and surplus which forms a guarantee fund for the faithful custody and management of property intrusted to it. It is under the jurisdiction of the State Banking Department and a bank examiner is required by law to examine into its condition, conduct and affairs generally, under the direction of the State Banking Department. All information concerning estates which is gained by such examination is known only to the examiner. Thus the examinations afford additional security without publicity.

Its management is the combined wisdom of a number of able financiers and it has a reputation for skill and fidelity which it guards as jealously as it does its capital. That this is a safeguard is certain. You have but to watch the press reports to note the many instances where a trusted adviser, executor or trustee has been led into some speculation, neglect, or mistake of judgment, resulting in loss and leaving destitute and helpless a family accustomed probably to every luxury. This is one of the most serious dangers of having an individual manage an estate. Ever present. A trust company is always to be found when wanted and is always present to transact any business that may come up. It is never out of town; never sick.

It cannot abscond and never takes a vacation.

Its life is perpetual; it cannot die.

Economy. The trust company receives the same compensation or commission as an individual, but is usually able to handle an estate more

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