Fumber of companies 1500. 1475 1450 The heavy line shows interruptions in the increase of the number of companies, in the years 1889, 1892, 1894, 1897 and 1898. For details of this kind, however, it is not safe to trust the chart, owing to the incompleteness of the statistics on which it is based. The dotted line shows that there was no year since 1881 in which no new companies were organized. This line would show no interruptions in the increase of companies, if there were any, because it is based on figures showing only the number of companies organized in each year, taking no account of companies which ceased to exist. Following the general trend of the lines, and averaging their courses, it will be seen that there was no marked change in the number of companies until about 1885, when there began an increase which reached its climax about 1891. From 1891 to the beginning of 1899 the increase went on, but at a less rapid rate. From 1899 to 1907 ínclusive, excepting the years 1903, 1904 and 1906, the in CHART A, showing growth in the number of Trust Companies. 1875 - 1907. As reported by the Comptroller of the Currency. of The United States", crease has been at a very much greater rate than in any of the preceding years. It seems probable that the considerable increases in the heavy line in 1888 and 1893 are due not to an actual increase in the number of companies existing so much as to greater success on the part of the Comptroller in getting reports from companies which had not hitherto reported. The following table shows the number of companies at the dates The striking thing about the table is the remarkable growth in the number of companies since the year 1900. While the number of companies doubled between 1890 and 1900, in the seven years 1900-1907 the number increased 504, or about 174 per cent., according to the Comptroller's figures, and 962, or about 186 per cent., according to the other authority. The figures for 1908 reflect the effects of the panic of 1907, which put an abrupt stop to the organization of new companies, and caused the Liquidation of a number of old ones. Chart B shows the growth of individual deposits of trust companies, and also of Savings banks, State banks and National banks. Following the course of the heavy line, which shows the increase of trust company deposits, we find much the same general features as in the line showing the growth in the number of companies, save that there is a considerable gain from 1880 to 1885. Especially marked is the increase from 1898 to 1902, inclusive. COMPARATIVE GROWTH OF BANKS AND TRUST COMPANIES. An interesting thing is the coincidence in the general features of the lines showing deposits of trust companies and of State banks. It is also to be noted that from 1897 all four classes of financial institutions had increases of deposits much greater than ever before. This does not seem to corroborate the popular impression that the trust companies are making their gains by taking business from the regular banks. It rather indicates that the trust companies are sharing with the others in a general prosperity that is unprecedented. The following table gives the individual deposits of the same four classes of institutions for the years named, as reported by the Comptroller of the Currency: It thus appears that during the ten years from 1890 to 1900, the Trust Companies gained in individual deposits $692,000,000, or about 206 per cent.; the State Banks, $714,000,000, or about 129 per cent.; the Savings Banks, $925,000,000, or about 61 per cent., and the National Banks, $1,008,000,000 or about 63 per cent. The amount of the gain for Trust Companies was less than that for the other classes of institutions, but the percentage of gain was much larger. During the seven years from 1900 to 1907, the gains were, for Trust Companies, $1,033,000,000, or about 100 per cent.; for State Banks, $1,801,000,000, or 142 per cent.; for Savings Banks, $1,045,000,000, or 43 per cent., and for National Banks, $1,878,000,000, or 72 per cent. During these years, therefore, the amount of gain in dollars was less for Trust Companies than for any of the other classes, while the percentage of gain was greater than that of any but the State Banks, which made a remarkable gain. The figures for 1908 show that all the institutions lost in deposits during the panic of 1907, but the trust companies lost most heavily. As regards a comparison of the figures for Trust Companies and for the other financial institutions named, it is important to bear in mind that the reports of the Comptroller give the statistics for all National hanks, and that said reports are fairly complete for State Banks and for Savings Banks; while the statistics for Trust Companies are very far from complete. Thus, the Comptroller's report for 1907 gives the total resources of the Trust Companies of the country as 3,073 millions, whereas the figure given by "Trust Companies of the United States" is 4,285 millions. The Comptroller's report for 1907 contains figures for but one Western State,-Kansas, and for but one Southern State,— Kentucky. It omits a number of important Trust Company States, among which are California and Ohio, the combined resources of whose Trust Companies in 1907 were not less than 324 millions. This incompleteness is not the fault of the Comptroller, but is due to the fact that he has no authority to compel the making of reports of Trust Company statistics by the different States.59 Two 59 As another instance of incompleteness, take the Report for 1897. hundred and fifty-one companies are reported, with total deposits of $566,922.205. But the Comptroller calls attention to an investigation made by the New York Financier of returns nearest to January 1, 1897, showing 458 companies, with deposits of $675,100,000. (See Comptroller's Report 1897, page XXXVIII.) If the reports gave returns from all Trust Companies of the country, the above figures for amount of gain in deposits would, of course, be increased. What the effect would be upon the percentage of gain is uncertain. The growth of deposits of all the financial institutions was checked in 1903, but the chart shows that according to the Comptroller's figures the Trust Companies suffered the most. Their growth also appears to have been checked during the years 1906 and 1907. The chart does not show the effect upon deposits of the panic of the Fall of 1907, as the statistics are based on reports made during the Summer of 1907. BANK AND TRUST COMPANY SUSPENSIONS, 1893-1907. SUSPENDED. BANK AND TRUST COMPANY SUSPENSIONS, 1893-1907. (Figures furnished by Bradstreet's.) INDICATED TOTAL ASSETS. |