New-York tribune., 1906-12-18
FEARS BANK TRUSTS.
Professor Schumacher Says Ten
d6Rcy Is TO5card Consolidation.

THE Concentration Of the Ranking Business in
Germany" the subject Of a speech made last
night by Or Herman Schumacher. professor OF
German Institutions and History ar Columbia, be-
fore The Academy Of Political Science Professor
schumacher predicted the formation Of huge bank-
ing monopolies, corresponding TO the industrial
combinations Of the present day. and said that the
beginning of the combination process in banks was
already showing itself. With this combination he
said, there a stragsle taking place between
Industry and banks, the result OF which was still
IN doubt The result Of this struggle he said
depended on the capital organization and person.
elity Of the opposing forces. After Dr Schu-
machers talk, Professor J. P. johnson, Of New
York University and several others discussed
banking questions
Or. Schumacher called attention to the fact that
most of the German bankers were recruited from
the outside, and that the banks themselves were
giving little training 10 future bankers For this
reason, he said. there growing up a system
Of commercial schools whose principal object was
u have bankers. Dr. Johnson. in commenting On
uAs said that the same conditions existed in this
country and that 80 per cent OF American bankers
were trained in other fields.
Like university presidents" he said they are
elected, not for their knowledge, but because OF
their ability 10 get To people who have money
Some bank presidents received their training as
EucI-neers"
Horace White called attention 70 the fact that
II the German system OF constellation We're per
THn
uon in the reserve held in the banks TO protect de-
posiiofs. James Speyer spoke Of the cry for re-
form in the American currency. he said that the
bsAs "l the American currency system was right
and that there nothing so radically wrong
aaout tire SupoTsfructure lie said that the idea
mat hanks should not be managed for the benefr
of The shareholders was a novel one trIt one tba+
could not be adopted
Dr. Schumacher began his address h,- ,ointfr,
out Tie ever increasing tendency of banking IN as
sum au International character. This immense
grown had taken place with the Increasing de-
manos Tor public credit the growth Of railroadiua
ana INDUSTRY Interests leading TO the formation Of
JoiHt STOCK banks, and later To the immense bank
Mg institutions OF the present day.
he desire 10 hold business. DR. Schumacb said
haa lea 10 Lle increase Of the current credit sv.
ZEN lAe issue OF shares and securities and the in
suiuhon Of an advising committee b1- the German
t"hhs i9f The purpose of making relations bet v,er
Il' - lhS ana The Industrial firms enduring as
I,.r..'f l,l'N EQUALS IN lhe world OF commercial
thlr iilao- te said. objected uniting an their
h5nkiHe business I'm one concern. ~
i'r. Srhulnacuer continued. The danger rbat =
luil li'i uSamaton of great banks NAV succeed
"liu n iduhlhS trust Doe cel cOped Is Indie
fousiA remote as on@ might often he glad n nor
kuaoe ones self 10 believe II is true tist tl1e H.
ser IS not imnl@dia-r. But il would he "a
10 I-tns' 10 recognize that here there exist tIe he
sl'n " comprehensive and definite organization
such beginnings have already existed Tor severai
c"caaes IN loan alliances. great associations of
bafkfr winch take loans for certain states nv
in9n'e enterprises IN certain districts such ba-
SinnlnRs are IN he found in the central Iiuion of
German bankers. whi-h founded ,'rbfjr
also with business questions. But this Tendency ~
furrner dlSdmsflpn IN the banks aDnears no
wnere more distinctly Than AZ the points whore our
great hanks haNe 70 .le7l with industry In N,
sffongert consolidated form