Financial History Issue 116 (Winter 2016) - Page 39

Waldorf Astor, Jay Gould and Oliver Harriman. After nearly 150 years of operation, the company was acquired by discount broker Charles Schwab in May 2000 for $2.7 billion. In November 2007, Bank of America purchased US Trust from Schwab for $3.3 billion. By the end of the early period in 1862, a few additional trust companies were formed in New York, Chicago and Kentucky. In the case of Chicago, they were insurance companies and a loan company with trust powers granted by the State of Illinois. Trust Companies, Middle Period The middle period of banking history in the United States, from 1863–1912, was the golden age of trust companies. US economic output grew 60% in the period between 1870 to 1900, led by manufacturing which continued to grow at an accelerated pace. The leading industries by 1900 were the production of machinery, iron and steel, printing and publishing and lumber. Agriculture now accounted for only 20% of the nation’s economic output. By 1890, the US economy had become the largest of any country in the world. The most significant factor that