Evening star. [volume] (Washington, D.C.) 1854-1972, 1903-08-15

than this has been the evolution Of power
full chains of banks and trust companies.
By this / mean the establishment Of COM
munities of interest and ownership be-
tween a number of credit institutions. These
institutions are, of course, Independent Of
each other in most things, but when need
ful they can be controlled by common
poncy. One such chain Is headed by the
National City Bank. and is composed of
seven banks and four trust companies,
whose total capital and surplus amounts to
over $S5,OOO,OOO. Another powerful group is
associated with the Mutual Life and Equit-
able Life Insurance companies. These two
companies own more than $10,000,OOO of
bank and trust company stocks, and are
largely interested in the Bank of Commerce
and the Western National Bank, which are
shortly to be consolidated with a capital of
s25, 100000. This consolidated bank will
be at the head of a chain of credit in
situations having a total capital and sur
plus of about $65, 100000. Another group of
twelve banks and two trust companies is
commonly known as the Morse group,
after Charles w. Morse, who first became
prominent as the president of the American
Ice Company. There are altogether about
six of these chains or groups but outside
of them are many Independent institutions,
and it cannot be said that these combina-
tons have established banking monopoly.
On the contrary, there never was time
when the contest for deposits was so in
tense as now Indeed the competition be-
tween banks has led to some questionable
methods of exploitation. These great chains,
however, make it possible to concentrate
immense sums of loanable capital at any
moment upon a given object, and while
their power may be feared, it can and al
ready has been exerted for the benefit of
the country in preventing monetary convul-
sions. Their power imparts a larger meas
ure of stability to the business situation.
Morgan and Rockefeller.
tor
than these chains of banks. The New York
money market may, broadly speaking, be
said to be divided into two great parties.
At the head of one is ]. Pierpont Morgan,
and at the head of the other John D. Rock
efeller of the Standard Oil Company. Now,
it is quite easy and natural to eXaggerate
the power of these two men. Nothing is
more common than to assign to them an
influence that they may never assert.
Scores of acts are attributed to them which
they never perform. But it is true that
in degree the money market is separated
into two influences traceable to these two
great leaders. Mr. Morgan, for instance.
is himself vice president of the Bank of
Commerce and director in the First Ma
tonal Bank. and through his partners is
represented in other banks, trust and IN
surance companies Mr.. Morgan and Geo.
F. Baker president of the First National,
are large owners of Chicago bank stocks.
1t was recently estimated that the Morgan
influence eXtenQeQ over groups VI UdHhlHS
and insurance institutions having total re-
sources of s1.751 .67S073. The Standard Oil
influence is prominent in the National City
Bank chain of institutions, which includes
a bank in Washington.
There is nothing strange in this There
are leaders in every business. Mr.. Morgan
is a leader. but it woula be an exagger-
alton to represent him as being an abso-
lutte and irresponsible monarch. On the
contrary, the moment he failed to lead
Alright and with full sense of the respon-
sibility resting upon him, that moment
he would lose his power. Nicholas Biddle
long the president of the Second United
States Bank was in his day and in proper
ton to the more limited transactions OF the
first forty years of the last century as
powerful as Mr. Morgan, but when he
turned aside from sound financial policies
to unsound speculations his following and
his greatness abandoned him. In other
words, continued leadership depends upon
two things, on success and on character.
No one can long possess power there who
does not achieve the first by the attractive
influence of the otter Character is an
asset of large value even in Wall street.
SERENO S. PRATT.