The daily morning journal and courier. [volume] (New Haven, Conn.) 1894-1907, 1902-12-06

though in the thoroughness with which
it IS carried out Pittsburg may be said
10 set an example in communities e.
eTyWhere. In the suburbs Of New York
banks arr Ioanins LITTLE iron banks
wherein the wage Garner can deposit
mis- loose change until the accumulation
reaches q sum that justiies deposit
in the bank. BY this fineteeth
scraping of the rural regi ms institu-
tiOns have accumulated handsome de-
posits within a year. notably one with
which Whitelaw Reid is associated ii
the remote s0utte4 stern corner Of New
York state.
Here this Pittsburg devo!pment l. eX-
planned by some Of our greater bank
ers who are men who do not permit
any incident or feature of commercial
or financial life in the United States to
escape them by saying that Pittsburg'
always fortunate in its ability to con-
centrate and control large capital and
much cash. has teen Wi,kin the past
three or four yelrs peculiarly fortunate
in that respect. Outside the two great
financial centers of the United States,
New York and Chicago, there has not
DECtI cIjtICI 1tldlLsEAS "a SSDoCA0GNAS ~
great an accumulation Of surplus cap
ital and cash in recent years as his
been the case with PittsbuTg. The
chief metropolis of the Southwest can
not compare With Pittsburg in this re-
spect. ST. Louis may do greater
commercial business, that is to sly,
may carry on al arger general trade,
but it has not so many banking insti-
buttons as Pittsburg, nor can it point
to so many with gross deposits in eX-
cess of five millions. 1t has three whose
gross deposits do exceed those Of Pitts
burg, but many whose gross deposits
are much less than the average of the
Pittsburg banks.
The creation of the United States
steel corporation is said by our own
bankers partially to explain this sud
den development of Pittsburg banking
interests Nowhere was there so great
a payment for the purchase of con-
stituert companies in the form of cash
as was the case in Pittsburg.
While there is admiration here for
the extraordinary energy and ability
that have been displayed in bringing to
Pittsburg this pre-eminence, neVerthe-
less it is noticed that Their is just hint
of mental reservation on the part of
some of our own high fin2nciers when
speaking of this development. In Bos-
ton it was found necessary greatly to
reduce the number of banks. one insti-
tuition being created which absorbed IA
banks. The tendency in that city is
still toward a reduction Of the number
of banks. But it must be said that
Boston has lost it's financial pre-emi-
hence and seems to be continually de-
creasing its influence as a community
of great surplus capital. On the other
hand, the great sources of wealth in
Pittsburg can never be taken away.
Boston lost her railroads and much of
her China and West Indian trade. She
is depending now chiefly upon certain
manufacturing interests which could be
removed elsewhere, but PittsbuTgs
wealth is in its soil and in the soil Of
the vicinity districts. But the question
is asked what investment Pittsburg is
making with these enormous resources.
If 4 per cent. is paid as interests up
on deposits, considerably more than
that must be earned if other expenses
are to be met and dividends secured.
If this investment is all going into
Pittsburg property, what of the day
when hard times come? Of New Yorks
banking resources much is invested in
securities that are a quick asset. Ten
millions could be realized upon the In
slant here by the sale of British con-
soils alone. So our bankers are Won
dering whether, in addition to superb
energy, there is to be also that caution
which eliminates recklessness, blind in
fatuation for immediate profit, and
which counsels a direction that enables
the financial ship to weather any
storm.-New York Letter to Philadel-
phia Press.