448 WILLIAM BARRET RIDGELY 



It would be a great mistake for the different states to allow the 

 national banking system to be broken down or seriously weak- 

 ened by new organizations which are able to do so because 

 they are less carefully examined and controlled than the na- 

 tional banks. The national system has furnished most ex- 

 cellent banks for the regular commercial banking business. It 

 is not likely to be an improvement to have this replaced by any 

 system of state banks. Much less is this likely to be the case 

 if the inducement to go into the state systems is greater free- 

 dom from control, weaker reserves, and less careful manage- 

 ment. The modern trust company has been called the highest 

 example of modern commercial organization, and of many of 

 the largest and best companies this is doubtless true. The reg- 

 ular trust company business is a very important part of any 

 financial system, and calls for the highest degree of character, 

 honor and ability. » 



I quote from a recent writer on this subject, and agree 

 with all that he has said in regard to the trust companies: 



"Trust companies are formed for the execution of the 

 most sacred duties that can be imposed by man. The care of 

 the property and welfare of the helpless and the dependent, 

 the widow and the orphan, the feeble and ignorant ones, who 

 are such an easy prey for the unscrupulous, is part of their 

 mission ; to carry out the wishes of the dead, who put faith in 

 the company and entrusted their dearest interests to it for 

 years, in the belief that it always would be true and honest; to 

 meet the expectations of the living, who entrust their property 

 to it in full confidence that it always will be faithful and capa- 

 ble ; this demands a conscientiousness and thoroughness, which 

 must always serve as a high ideal and inspiring stimulus to 

 right minded men." 



When, however, the trust companies cease to do this char- 

 acter of business or attempt to add to it not only commercial 

 banking, but in many cases underwriting and promotion of all 

 sorts of new enterprises, the case becomes entirely different. 

 It can hardly be said to be a reasonable or proper regulation 

 of the banking and trust company business to allow the organ- 

 ization, under the same law, of concerns which not only have 

 the power to act as trustees in all of the important capacities 



