The Topeka state journal., 1899-12-27
A Great Financial Institution
to Be Formed.
Three New York Concerns Will
Unite to Start.
GAGE ITS PRESIDENT.
New York Journal Says the
Secretary Will Become
The Head of the "U. s. Ma
tiOnal'' After Retirement.

New York, Dec. 27.-The Journal says
| today:
| A great financial institution, to be
known as the National Bank of the
| United States, or the National United
| States Bank is forming. This bank IS
| to be the result of a consolidation of the
| National City Bank and the Hanover
National Bank of New York, both con-
trolled by the Rockefeller money trust,
and a smaller local concern
This consolidated institution is to be-
| according to present plans, the central
money power of the United States, just
as the Bank of England, the Bank or
France and the Imperial Bank of Berlin
are in their respective countries.
Secretary of the Treasury Lyman }.
Gage, after his retirement from the
cabinet, is to become the head of this
The National City Bank of New York
is practically the fiscal representative
of the United States government,
through the favor of Secretary Gage
The clOSeneSS of this relation has
been shown openly on several occasions.
The City Bank acted for the govern
ment in the transfer of the huge pay
ments from the Pacific railroads to the
treasury, its intermediat1On preventing
disturbance of the money market. The
treasury, acting alone, would have
caused a shock to the mechanism of
1t also was the fiscal agent of the
United States in the payment OF the
$50, O00 900 to Spain, under the terms of
the treaty of Paris, in payment for the
Philippine Islands.
BUILDING BOUGHT.
More recently the secretary of the
treasury has made it the place of first
deposit for the internal revenue re
ceipts of $1,000 600 a day, which he is
diverting from the treasury in order to
prevent an accumulation there of sur
plus funds necessary for the conduct
of the peoples business. This tranSac-
ton is not only profitable to the bank,
but it gives it valuable prestige by ad-
vertising it's peculiar relation to the
administration.
The National City Bank is known to
have an ambition to make this relation
permanent and more nearly official; that
is, becoming in fact, what the old
United States Bank was in law, until
President JacksOn's cOup-the central
money power of this country as the
banks of England and France and the
Imperial Bank of Germany are in
theirs.
To this end the ancient custom house
building was bought from the govern
ment It viii cost So, 600 to remodel
and refurnish its interior, and even
more to build an edifice expressive of
the banks new relation of the business
world.
The stockholders are expected to de-
eide at the meeting next month just
which is to be done. Housed in the
old custom house, it would look like the
"Old Lady of Threadneedle Streets
younger sister. and looks count for
good deal in business.
At the January meeting, an increase
of capital from $1,000, 600 to $4,000 600
will be voted The bank now 67es
business four times as large as that of
any other institution of the kind in
New York. It's loans are about $780,
100000 backed by strong surplus re-
serve.
The allotment of the new stock will
be divided. Fifteen per cent will be
taken at par by the directors and the
other per cent will be distributed pro
rata among the directors and stock
holders alike.
The last sale of National City Bank
shares was at $2,0O7 for a 800 share
The book value,'' based upon the act
ual surplus to be divided if the bank
were to go into liquidation, is nearer
$780, The difference between that and
$2,OO7 represents the vaIue of the good
will and prospective earning power.
ONE HANDSOME ITEM.
The allotment means handsome re-
ward to the men who have built up
the business in a few years.
Its foreign exchange business is an
example of what this growth has been.
The bank handles Lor the Standard Oil
Trust all the banking business growing
out of its exports of petroleum, which
amounted to SIS, 900, 900 in eleven months
Of this year. This huge item alone
gives the bank enormous power in this
branch of finance
President James Stillman, when ques-
toned about the proposed consolidation,
said that he did not see the necessity
when the Third National Bank
liquidated," he said. 'it had built up a
large out-of-tOwn competition, which
we got for nothing. That was profit
able to our bank. To acquire the Han
over would involve considerable cost,
and it is question whether the ad-
vantage would equal the expense.
The Hanover is controlled by the same
powers which control the National City
AS they stand they are closely in league
and one acts as a feeder for the other,
each diverting to the other business
which it can not undertake itself.
MR.. CAGES PLANS.
A Washington dispatch to the Jour-
nal says:
Secretary Gage will go into the bank
ing business at the close of his term
as a cabinet officer. He has been offered
a field in Chicago and New York but
it is fairly we'll understood that he Will
begin business as the head of some
concern having connection with the
National City Bank Of New York, and
will eventually become the head of the
latter bank. There is a. spirited rivalry
between New York and Chicago for
the favor of Mr. Gage
He will, it is understood, make a COM
promise, which will please his friends,
both in New York and Chicago. The
plan, as obtained from a friend of Mr..
Gage today, is that he will accept the
Chicago proposition temporarily, per
haps for a very short time. He will,
however. always have in mind becOn-
ing the head of the National City Bank
of New York City. He will become at
tached to some Chicago bank having
National City Bank connection, and
eventually transfer himself to New
York as the head of the latter institu-
ton.