Insurance, totalled ' approximately $1,247,000 for 1939, an increase of $130,000 over 1938. As of January 1, 1940, the Bank and its employees have become subject to the Federal Social Security Act. It is estimated that the Bank will pay a tax in 1940 of about $90,000 and the employees will pay a similar amount. In addition the State of New York now has authority to impose the Unemployment Insurance Tax on national banks, and if this is done the tax on our Bank in 1940 for this pur-Dose is estimated at $300,000. Under these two social security laws the tax rates will rise by stages in subsequent years.
Our foreign exchange department has been more active than at any time since the last war. Because of the breadth of the markets with which our worldwide operations bring us in touch, we were able during the critical days of the summer and autumn to give our customers facilities to meet their exchange needs at a tithe when practically no general market existed. Many American companies have consulted us regarding their exchange and export problems.
Our Chinese branches have continued to operate safely ard profit ably through another year of war conditions and disturbed trade. There has been a gradual and moderate im-{provement in the volume of exports in recent months.
Text read from the printed page and cleaned; old type leaves the occasional error.