The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1903-07-01
GREAT BANK FOR new YORK.
Biggest Financial Institution in
the World Being Organized
With $lOO, 600, 900 Capital.

Washington, June 24.-New York
city is to have the largest bank in the
United States and in the world. 1t
will be larger than the Bank Of Eng
land or of any Of the famed financial
institutions of the old world. This in
formation is brought to Washington
by an agent of one of the large fnan-
cial concerns of the metropolis. Just
how soon the big enterprise is to be
launched is not decided, but overtures
have been made to see if the govern
ment will raise objection to the
Capitalization and to the organisation
of the bank under the national banking
laws. The refusal of the government
to sanction the venture is the only
thing that Will prevent carrying out
the scheme. It is not deemed prob
able that any obstacle will be met as
the same safeguards will be insisted
on and the same precautions taken py
the government after the organization
as are taken now in the smallest bank
Of the United States. The capitahza-
tion is to be 500, ,000,0 600. This will
| equal the governments gold reserve
| and will be much larger than the
Capitalization Of any banking or hnan-
cial institution in the world.
Although the time has not come, to
| make known the men who are to be
associated II the new enterprise it is
understood that the recent consollda-
| tion of the National Bank Of Com
merce and the Western National Bank
| in New York city is the first step in
the direction of the new bank. These
hanks have united and have a
capitalization Of S25, 600, 600, making
them now the largest bank in this
country. The name OF the new lnstl-
tution is the National Bank of Com
| merce.
AS a majority of the stock in the
new bank is owned by the people con
trolling the Western National Bank,
| it has not been generally understood
why the name of National Bank OF
Commerce was chosen. 1t was ex-
planned today that the National Bank
of Commerce has charter, which IS
| different and more valuable than any
other bank in the country. No such
charter could possibly be secured from
the government now. At the time
when the national banking law was
passed, it was the desire of the gov
ernment that State and other banks
should take advantage of its terms. In
tconseouence organized banks were per-
mitted to retain their charters, except
where they were in open conflict with
the provisions of the national banking
law. The National Bank of Commerce
has charter which is not duplicated
anywhere. One of its advantages is
the limiting of responsibility Of its
stockholders to the amount of their
investment. Another is that the
directors themselves fill vacancies in
their own body, and not the stock
holders generally. The. charter mas
many more practical advantages n
that it is more liberal than charters
since the banking law went into effect.
The great advantage OF organizing
new bank with a capitalization OF
500, 900, 900 is to finance great enter
prises. Financiers have seen the
growing tendency among the people OF
the country to engage in new and big
enterprises. In former years, when
the country was younger, few schemes
were launched which contemplated
term of more than few years to work
out. Now fnanciers are launching
enterprises which, they believe, will
be in existence. and by their very
nature cannot be worked out for sew
eral generations. These require I'M
mense amounts Of money. Now, when
big enterprise is launched financial
syndicate is organized. Into the
syndicate number of banks and fin
ancial institutions are drawn. Il one
of the big banks drawing to itself
millions Of dollars Of capital is
organized, it is felt that there will
not have to be division of profits
with other members of a syndicate nor
will the largest enterprises along
conservative lines have to enter into
negotiations with any but the one
concern.