dividing the sum by thirteen. This, like all the other schemes, was an attempt to have a sworn valuation which pretended to be at the market but was not. The State superintendents who agreed upon this pseudo-market valuation do not yet see that the whole trouble arises from making market value in any way the standard; this it is utterly unfitted to be a standard of solvency for these companies. Again we say that these gentlemen, being "statesmen" and not mathematicians, should have consulted their actuaries.

The savings banks occupy a position somewhat similar to that of the life companies. They are more subject to sudden liquidation, but this, by the law of averages, never extends beyond a small percentage of their total deposits; hence to scale their assets down to auction prices is entirely unjust. The savings banks of this State, however, had taken up the subject earlier, and beginning about 1904 the books have been gradually transformed by most of them to an amortization basis. Mr. Kilburn, the former superintendent of banks, announced that after a reasonable time for preparation he should insist on the amortized values being given and the surplus being stated on that basis. Mr. Clark Williams, the present superintendent, while approving the principle, did not think the time opportune for a change.

In his annual report, however, Mr. Williams has presented a most strikingly clear and lucid argument in favor of the scientific plan of valuation, and recommends "that statutory provision be made for the valuation of the assets of savings banks and the capital investments of trust companies by amortization, and that profits and losses thereon be calculated on the same basis."

Mr. Williams further proposes to provide a precautionary reserve against possible loss in liquidation. He thus recognizes the distinction between the savings bank and the commercial bank on the one hand, and between the savings bank and the life insurance company on the other. The savings bank and the life company are both investment-machines to provide for future needs: the former is required to pay at more irregular times, and hence may, under peculiar circumstances, require an extra reserve besides its normal surplus.

This method of providing against possible losses, not by reducing all assets to a lower figure, but by a proper reserve, is good accountancy; and it is precisely in line with the quotation given by

Mr. Tatlock from Mr. Leon O. Fisher, of the Equitable: "Special provision should always be made for any anticipated losses of principal (through the insolvency of the debtor), but such provision should be made by creating special reserves from surplus, rather than by writing down the amortized cost value." This dictum is strictly applicable to the accountancy of savings banks if we omit the words in brackets or write after them “or through sales compelled by unusual demands from depositors."

It may be remarked that the market-value surplus rests solely upon tradition and that it is nowhere prescribed by law. Mr.. Williams, we think, might very properly have enforced the investment-value basis at this juncture. The only provision of the law governing his department (§124) which could be construed as a guide for this, would point to par as the standard and has always been treated as inapplicable.

The agitation for reform in the basis of valuation of termsecurities originated among the certified public accountants of New York State and our late colleagues, Charles Waldo Haskins and Joseph Hardcastle, were among its zealous advocates. THE JOURNAL has consistently advocated the scientific method and used its influence against the popular fallacies on the subject; holding:

That the coupon is not necessarily the interest;

That the amount paid at maturity is not necessarily the principal invested;

That profits and losses cannot be made by marking property up and down;

up;

That a surplus for going on differs from a surplus for winding

And that, in Mr. Tatlock's language," the theory of valuation of bonds at market values is wholly at variance with the principles which underlie the proper conduct of the business of life insurance, and does not at any time represent the actual facts of a given financial situation."

Thomas P. Ryan.

Public accountants throughout the United States have learned with profound sorrow that Thomas P. Ryan died Tuesday even

ing, December 24, 1907. He was 47 years of age, having been born on October 18, 1860, in New York City. The interment was in Woodlawn Cemetery on Saturday, December 28. A service was held at his late home by the Elks, of which organization he was a member, and the remains were then brought to St. Mary's Roman Catholic Church where a solemn high Requiem Mass was sung. Mr. Ryan's life-long friend, the Rev. William Livingston, paid a tribute to the life and character of the deceased. Father Livingston was assisted by Rev. John J. Fullam and Rev. Henry A. Curtin, deacon and subdeacon, respectively, and Edward A. Loehr, of St. Joseph's Seminary, was Master of Ceremonies. There were present in the chancel: Rev. C. R. Corley, pastor of St. Mary's; Rev. John J. Wynne, S. J., editor of the Catholic Encyclopedia, with which Mr. Ryan was closely identified; Rev. Father Neely of Rome; Rev. J. J. McNamee of Mt. St. Vincent; Rev. M. J. Murray; and Rev. J. F. Kelahan. A number of the members of Mr. Ryan's profession were present. The pallbearers were: Elijah W. Sells, Franklin Allen, T. Cullen Roberts, and Adam A. Ross, Jr., members of the Executive Committee of The American Association of Public Accountants, and J. R. Loomis and William F. Weiss of the New York State Society of Certified Public Accountants.

Mr. Ryan was a member-at-large of The American Association of Public Accountants, and a member of its Board of Trustees, its Executive Committee, and its Committee on Review of Appropriations-Budget, and Chairman of its Committee on ByLaws. At the last annual meeting of the Association, held at St. Paul in October, 1907, he presented numerous recommendations for important amendments to the By-Laws, and they were unanimously adopted. Mr. Ryan was also a member of the New York State Society of Certified Public Accountants, having been one of the charter members, 1897. He was elected a director during that year and was a director at the time of his death. On May 14, 1906, he was elected Vice-President. He was the first chairman of the Committee on Complaint and always remained a member of that Committee, and served as a member or as Chairman on nearly all the important committees of the Society. Ever since the Society became a member of The American Association he has been a delegate, and was one of the conference committee appointed for the purpose of uniting the various accounting

societies. It was Mr. Ryan who was instrumental in bringing to the attention of the New York Bankers' Association the desirability of inserting in the form of statement which the Association recommended, the query whether or not the accounts had been audited by a certified public accountant. Mr. Ryan was also a member of the Transportation Club, the Catholic Club, and the Fabian Union in New York City, and the City Club.

He enjoyed to an extraordinary degree the confidence of his clients, not only in his integrity, but in his sagacity and sound business judgment. He held certificate No. 16 issued by the Regents of the University of the State of New York on April 9, 1897, for the degree of certified public accountant.

Mr. Ryan was active in the promotion of all matters in the interest of the development of the profession of public accountancy. He was a contributor to its literature. At the last annual meeting of The American Association he read a paper on "The Accountant in the World of Affairs," which appeared in this Journal in December. Mr. Ryan's broad-minded attitude and his unselfish devotion of hours and days of labor to the interests of his profession won the esteem and hearty admiration of his associates. His death is a severe loss to the American Association.

Mr. Ryan was married to Miss Mary Jennings on October 3, 1889, who with their four children, Cecil, aged 16, Alice, aged 13, Thomas, aged 11, and Ruth, aged 8, survives him.

At a meeting of the Executive Committee of The American Association, held on December 30, 1907, the regular order of business was suspended and the following resolutions were adopted:

By the untimely death of Mr. Thomas P. Ryan, on December 24, 1907, in his forty-seventh year, The American Association of Public Accountants is called to mourn the loss of an associate whose professional qualities won our admiration, and whose personality endeared him to our hearts. Be it therefore

RESOLVED, That the Executive Committee of the Association desires to express its appreciation of his worth as a man and colleague. His actions in all things were governed by the highest standard of honor and integrity His duties in this Association were performed with the most conscientious fidelity and sound judgment. His extensive experience as an accountant and in varied business affairs made his counsel and opinions of exceptional value, and added materially to the success of our association in the advancement as well as the protection of the interests intrusted to our care. In his life our esteemed friend exemplified resourcefulness in

counsel and debate, courtesy of manner, kindliness of disposition, and the helpful spirit to those less gifted than himself. We therefore record our heartfelt sorrow in the loss of a most faithful and zealous member of this Association.

Be it further

RESOLVED, That to the bereaved family of Mr. Ryan our sincere sympathies are hereby tendered in their great sorrow, and as a mark of our esteem and regard, it is hereby

VOTED, That these resolutions be cutered on the minutes of the Executive Committee, and a copy suitably engrossed be sent to Mr. Ryan's family.

FRANKLIN ALLEN, New York; J. E. STERRETT, Pennsylvania; A. A.

Ross, JR., Pennsylvania; THOS. CULLEN ROBERTS, Secretary, New
Jersey; H. T. WESTERMANN, Treasurer, Missouri; E. W. SELLS,
President, New York, Executive Committee.

NEW YORK, December 30, 1907.

At a meeting of The New York State Society of Certified Public Accountants held on January 13, 1908, the regular order of business was suspended and the following resolutions were adopted:

Let us pause for a few brief moments, and count our numbers-there is one missing from our midst, for death has claimed a beloved friend and associate. Let us here record with sincere sorrow, our deep sense of loss in the passing from his earthly activities, of Thomas P. Ryan. Our late colleague had not completed the fifth decade of his life, and his matured experience and ripened powers seemed to hold the promise of many active years in our midst. But if the measure of life did not meet with the hopes and wishes of his friends, he lived long enough to demonstrate in a striking way not only his ability and disposition to render influential and enduring service, but, even more, the purpose of his acts was manifestly high and kindly.

Evincing always a marked degree of interest in the profession, he served with honor and credit in whatever position he was called upon to fill.

Of a genial disposition, he was ever ready with kindly wit, yet never lacked firmness, dignity, and moderation when in debate.

The early demise of our esteemed colleague has brought to a close a useful life, but we, who remain, may obtain consolation in the sentiment,

"Heaven gives its favorites-early death."

RESOLVED, That we place upon our records this minute of esteem and regret, and extend to the family of our deceased friend our heartfelt sympathy in this, their greatest loss.

(Signed) HENRY R. M. COOK, SAMUEL D. PATTERSON, LEON Brummer, Committee.