pondents' account (without responsibility on the Bank's part but using the same care and discretion as in purchasing for its own. account) any amount of such investments that may be desired. Commercial paper thus acquired is bought on 10 days' option; pertinent information regarding the firm or individual responsible for the obligation may be obtained from this Bank's credit department. Credit Files THE credit files of The National City Bank of New York contain credit information on upwards of 375,000 names, domestic and foreign. Correspondents of The National City Bank of New York have access to this body of credit information; they are finding that every day, by drawing upon the information contained in these credit files, they are able to render most valuable service to their own clients. Telegraphic Facilities THE National City Bank has direct telegraphic wires connecting with the important business centers of the nation, and through this system of direct communication, the Bank is able to effect for its correspondents transfers of funds, etc., with a minimum loss of time. Publications THE Bank publishes a considerable volume of educational literature which is available to all of its correspondent banks. Chief among the Bank's regular publications is its Monthly Bulletin, which is a review and interpretation of current economic, financial and commercial conditions. A plan has been worked out whereby special editions of this publication are available for distribution by The National City Bank's correspondents. These special editions carry the correspondent bank's own advertisement, and are proving a very effective advertising and publicity medium to the correspondent banks that are at present using their own editions. A special folder explaining this service in detail, and giving an estimate of the small cost involved, will be furnished upon request. The Publicity Department is called upon from time to time to advise with correspondent banks regarding their publicity and ad vertising campaigns; to place in New York publications advertisements for correspondents, (such as legal notices required by the National Bank Act) and to advise regarding sources of material for publicity purposes. Library THE Bank's financial library contains upwards of 100,000 volumes, periodicals, corporate reports, etc. It is a pleasure for the Bank's librarian to give suggestions to correspondent banks that wish to build up libraries of their own, to prepare bibliographies and lists of readings on financial topics when requested to do so, and, in a word, to make this large treasure-house of financial literature useful to the Bank's clients. Statistical Information THE Statistical Department of this Bank is often called upon to compile statistical reports for correspondent banks. Such requests are always gladly met and the information of course is furnished with this Bank's compliments. Educational Facilities THE Educational Department is frequently in a position to give counsel to correspondent banks that are interested in educational matters. Foreign Divisions SINCE the establishing of The National City Bank of New York's Foreign Department back in 1897, the Bank has tirelessly striven to develop its facilities for foreign banking, to keep pace with the ever enlarging needs of American business men. With the passage of the Federal Reserve Act, which gave American banks the privilege of establishing branches abroad, The National City Bank at once began serving the interests of American trade by the opening of foreign offices. The Bank's own branches, and those of the International Banking Corporation, (owned by The National City Bank) are located in the principal cities of South America and the Caribbean district, throughout the Far East, and at such important European commercial centers as London, Paris, Antwerp, Brussels, Lyons, Barcelona, Madrid and Genoa. This world-wide network of branches, supplemented by correspondents in all cities where branches do not exist, places The National City Bank of New York in a unique position for being of assistance to business houses and banks throughout the world that are in any way in contact with the mighty current of foreign trade, and makes it possible for the Bank to handle all financial transactions arising from international commerce. Special facilities which the Bank's foreign organization enables it to offer include: 1-Collection of drafts anywhere in the world. 2-Negotiating or advancing against approved foreign bills, documentary or clean, drawn on any foreign point. 3-Caring for all phases of foreign exchange transactions, including the sale of foreign drafts, payable in any foreign country; transfer of funds by mail, telegraph or cable; and purchase and sale of foreign currency. 4—Making available the Bank's foreign draft service, under which correspondents draw their own drafts direct on foreign countries. 5-Acceptance of drafts covering commercial transactions, domestic and foreign, in accordance with the regulations prescribed by the Federal Reserve Board. 6-Issuance or advice of import or export commercial letters of credit, and of travelers' letters of credit, and travelers' checks. 7-Gathering and supplying to the Bank's clients reliable credit information on foreign firms, and forwarding to the Bank's foreign branches correct credit information on American firms. 8-Aiding in securing legal services in foreign countries. 9-Study of, and reporting upon, foreign market conditions and possibilities for the sale of American goods abroad. 10 Through the Bank's Foreign Trade facilities or connections, bringing together the foreign buyer and the American merchandiser, and vice versa. 11-Assisting customers in disposing of rejected merchandise in connection with dishonored foreign bills. 12-Supplying letters of introduction to the Bank's foreign branches and foreign correspondents. 13-Execution of orders in this and foreign countries for the sale or purchase of securities. The advice and counsel of the officers of The National City Bank of New York-those concerned with foreign, as well as those concerned with domestic affairs-is always at the disposal of every one of the Bank's correspondents. These gentlemen consider it a privilege to give their attention and best efforts to the special problems which are every day laid before them by the Bank's correspondents. Our correspondent bankers visiting New York will find the Fortysecond Street branch of particular convenience because of its accessibility to the hotel, shopping and theatre district. The Bank also has a branch at Fifth Avenue at 28th Street, which serves the important business district in that section, while the Bowery branch, located at Bond Street is in the heart of the East Side district. Compound Interest Department THIS is a department where deposits as low as $1 are accepted, and interest compounded monthly at the rate of 3 per cent. per annum is paid on all balances of $5 and upward. It is maintained only at the Forty-second Street branch, and although it was only started at the beginning of 1922, it is already being used as a depository by many thousands who wish to build up bank balances. Safe Deposit Facilities COMPLETE and up-to-date safe deposit vaults are maintained at the Forty-second Street and the Fifth Avenue branches. These vaults afford the last word in protection to valuables of every kind and are operated as an added facility of National City service. I' GROWTH OF THE NATIONAL BANKING SYSTEM N this chapter it is impossible to attempt anything approaching a comprehensive history of national banking in the United States. The subject itself is so broad and so involved with other subjects in the fields of finance closely akin to it, that it can be treated here only in general outline. The sketch following is presented with the idea that it may serve as the background that is essential to a thorough understanding of the national banking system as it operates today. For convenience, and for purposes of comparison, the history of national banking may be divided into four main periods: II-1883-1899 Natural Development. III-1900-1913 Development of Smaller Banks. present date Under Federal Reserve System. I FORMATIVE PERIOD THE fundamental difference between the general course followed by American banking before and since the establishment of the national banking system is this: In the earlier period the tendency of banking was toward the extensive use of bank credit in the form of note issue; this form of credit completely lacked stability and constant value, since it was subjected to no central supervision. During the national banking period, the tendency was toward more extensive use of bank credit in the form of deposits, and relatively less in the form of note issue. Note issue was a privilege conferred only upon those banks under Federal supervision, and was hence subjected to central control, with resultant stability of value. |