The herald., 1897-10-26
OFFICE OF THE HERALD.
LOS ANGELES. October 25.

LOS ANGELES, October 25.
The consolidation of banks has been a
favorite topic OF discussion during the past
three years, the comptroller of the cur
rency having frequently alluded to the
subject, both in his official reports and in
the public prints But while a number of
eminent economists have dealt with the
question in the abstract. it has remained
for New York and Kansas City bank
to demonstrate in the concrete just what
bank consultations. mean, and to what
extent a Capitalization of interest has af-
fected ther business. The two most no.
table consultations of the year have been
those of the National City bank Of New
York which absorbed the Third National;
and the National bank of Commerce. Kan
sas City, which took over the business Of
the Metropolitan National and the Mid
land National of that city. These banks
have just made reports of their condition,
and comparisons with the statements of
one year ago are interesting from every
standpoint
The New York Financier. in treating of
this subject, says:
The National City, as the largest bank
in the United States, probably will attract
the most attention, although the growth
of the National Bank of Commerce, Kan
sas City, has been none the less note
worthy. On October G, 1896, the National
City banks had gross deposits of $S1, ,145.
On October 5, 1897. this item stood at
ss2, 22S.4OO, a gain of sSO,44S255. or nearly
100 per cent, in - months. In other words,
the bank practically doubled it's deposits
In one year. To put the matter in another
way. the bank gained 100000 in deposits
every day it was open for business last
year. OF course 1t absorbed the business
of the Third National in bulk, but as the
gross deposits of the latter on October
g. 1896. were sS947,9O9 there has been an
increase from outside sources of between
$2l 900 and $22. .000, 900. 1t may be urged
that the growth of the National City's de-
posits are not the result altogether of con-
solidation-that other banks have made
large gains. This is true in part, but as
late as May 2Sd last, before the totals of
the National City were affected by the
Third Nationals business, it's average net
deposits as reported to the clearing house
were only $S2,279,SOO. The gain since the
absorption, even leaving out the Third
Perhaps the deposit item can be UNDER
stood better when 1t is stated that the
individual deposits of the National City
bank are now $S7,S74, 266, as against s25 700,-
$50 for October, 1896. In the same time its
bank deposits have grown from $4,S2S, 9Sl
to $19,052, 1895. The moral seems to be that
nothing succeeds like success.
In the matter of loans the same bank
q - los
year. which is a gain OF over $780, 900, 900.
Does anyone imagine that this increase
would have been proportionately large,
had there been no consolidation? Without
taking up too much space, it may be said
that the total of all items Is now $67 1886, $780,
o. compared with $37 122, 900 just IL months
ago and the bank has cash reserve OF
3la117.41O or practically double the re-
serve of October G. 1896.
+ + +
1t is stated in the wine districts of West
ern France that there will be no 1897 cham
payne, the grapes being too acid and poor
In quality to produce q wine good enough
for the American market According to
British consular reports the champagne
vintage of 1885, which has not yet been
placed on the market, Is very fine, and will
win for itself great name. The most
fortunate people, however are those who
possess the vintage of 1889, which is de-
scribed by the connoisseurs as in every
sense of the word grand cru"
Results already achieved in field and fac
tory on commercial scale during the past
six years. to say nothing of many thou
sands of farm and laboratory tests DEM
Onstrate beyond question two things says
Herbert Myrick. First, that the sugar beet
ha pvr In Gtah rllnp nj pI
quality over a sufficient area of the United
States TO furnish the worlds supply of
sugar, and, second. that the cane industry
can also be largely developed. SO true Is
It, that it is now recognized by all well
Informed about this new industry that Cal
ifornia, Iowa, Nebraska, and any one of
several other states could alone supply
the United States with all the sugar SHE
consumes Once firmly established, Amer
ican genius will SO improve upon present
conditions. that in due time the United
States will be an exporter of sugar. For
experience has shown that, once estab-
lished, the beet can more than compete
with the cane.
The government OF New South Wales an
nOunces that 1t found such difficulty In
placing in England an order for 2O00 tons
of steel rails of high carbon quality that
1t was compelled to place it in America
where the contract was readily undertaken
at e5 per ton.
The Engineering News says: Brazilian
railways, says Paris news item. are to be
farmed out to an English -French-G German
syndicate. provisional contract has been
made between the Brazilian government
and the Rothschild Freres, the Discount
bank Of Berlin and Compton d dEscompte
of Paris. company is to be formed to
take over the administration of the Bra
zlian railways. The capital will be $40,
100000 half of which will be taken by the
English group and one-quarter each by the
French and Germans. One of the condi-
tions is that the capital is to remain in
Europe for two years, and numerous sin
ecure offices on the railways will be sup
pressed and abuses in administration re-
formed.
The London Times says: ''The trade of
the Mexican republic Is increasing with
considerable rapidity Last year the i'm
ports amounted to G9359,5 547, against G7-
249.009, while the exports were ELI. $50 00O
against Ell, 600 the previous year. The
Increase i'm imports was spread over all
staples. but was chiefly marked in the case
OF iron and steel and in machinery and i'm
plements. British imports were greater In
1896 than in 1885, yet they only amounted to
II per cent of the whole import trade In
1895. while they We're 10 per cent the year
before. The imports from the United Staes
on the other hand were 521b per cent of the