The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1910-01-02
GREAT SYNDICATE
BUYING UP BANKS
Centraliziog Toward Concen-
trating Power
INSTANCES IN WASHINGTON
Recent Developments in New York
Described and What They May
Lead to-BanI<ing Alliances
in Wall Street.
From the washington Herald.

From the Washington Herald.
Financial writer's are calling attention
to the tendency in banking affairs toward
larger capitalization, accumulation OF sur
plus, and enlargement Of resources by
the consolidation of two or more institu-
tions into one OF the control Of several
institutions by syndicate of capitalists.
The motive to this larger activity Is the
making OF large, longtime loans which
mean greater profits to the bank with
less cost of accounting and less scattered
risk These writer's say the tendency is
widespread. Though most noticeable in
New York the same thing is going ON in
all the large cities Of the country.
The views of these writer's would seem
to have some foundation In Washington.
BY the slow accommodations of business,
by mergers, and by enlarging capital and
surplus from time to time the local banks
and trust companies are growing in imam
cial power. Two Of Washington's ma
tional banks have each 81, 100000 capital
and one Of them has q surplus of 81, 100000
and the other $6,5O0,000 Among the trust
companies is seen q similar accumulation
of capital, surplus and resources, giving
to these institutions large loaning power
and cumulative profits. Savings banks
are also coming into the same condition,
three of the local banks Of this kind
showing savings aggregating over N.0Oo,-
900 each.
Banks Grow Gradually.
New banks when formed receive the
major part Of their business from small
depostors and tho business Of the bank
is necessarily widely scattered among
many patrons AS money accumulates
the bank makes larger loans, some OF the
smaller ones are crowded out and the
institution usually graduates into tho
class of the powerful institutions in a
| few years. As things go the tendency, as
these writers point out. IL toward large
loans, large operations and large profits.
1t is, SO to speak, In the commercial IN
| of the times. 1t Is an interesting problem
and some of the men writing on the sub
| ject of late scent danger In the concen-
| tration OF this money power In the hands
| OF syndicates which control many hnan-
| cial institutions. This can the better be
seen by reference to what is said to be
| going on in New York at the present
time.
Speaking of the system OF finance which
grew up under the operations of Charles
| W. Morse, eliminating In tho panic OF
| 1907, writer upon the situation in New
York says:
within a year another movement in
responsible hands has developed, the aim
| being to unite some of the strongest
| downtown banks and trust companies IN
q sort of working alliance
Some Of the Group Banks.
"This effort has Deem quietly goina
| on for months but until the unex-
pected announcements Of the sale OF the
Ryan holdings OF Equitable IAfe stock
| to ]. p. Morgan. the details Of the
| scheme were only partially known
with the passage hast month Of ths
| Guaranty Trust company to Morgan In
| terests what wall street knows ~ thu