The Detroit times., 1911-04-15


duced the number OF banks doing bus
mess In the city. This has been
brought about by consultations, one
large and powerful institution taking
the place of several smaller banks and
Offering not only greater safety to its
depositors but also far greater bank
ing facilities to its customers.
There were doing business in De-
troit in 1900 fifteen state banks, six
national banks and one trust com
pany. In 1910 there were but eleven
state banks and four national banks,
one OF which has since been merged
with another institution, giving the
city only three national banks at the
present time. IL is significant OF the
added Importance of Detroit as a
financial center that there are now
three trust companies transacting a
general trust company business,
whereas there was but one in 1900.
Four state banks have lost their
identity through consultations during
the period from 1900 TO 1910, only one
has been organized One state bank
failed during the decade There has
also been one national bank organized
while four have lost their identity by
consultations.
The only bank failure that has TAX
en- place was the failure OF the City
Savings bank In 1902 as a result OF
unsuccessful speculations on the part
OF the vice-president. This was a
far-reacning FAILURE at the time, involv-
ing more than a million dollars. The
depositors have received about two
thirds OF their money in dividends
from the r-rcIvership which has not
yet cleared up all the assets. There
have been no failures of national
banks In Detroit during the period
covered
The centering OF the automobile in
dustry in Detroit has had a great
deal to do with the increasing import
ance OF Detroit as a financial center
A good evidence Of this is the re-
cent removal of the general Offices of
the General Motors Co., which have
been I'm New York since the organiza-
ton OF the big automobile combine,
to Detroit. Another significant step
in this direction is the decision OF the
United States Radiator Corporation to
move its general Offices here from
Dunkirk, New York. Detroit was Sc
lected as the logical center from which
the operations OF these two big cor
porations could be best directed. This,
OF course, means that Detroit will be
the center OF the financial operations
Of these companies.
The influence of Detroit banking in
stitutions is rapidly being extended all
over the country, through invest
L. ,Na.I 10 10 fy,x+ oct
ments of Detroit capital in timber
land in the south. along, the Pacific
Coast and in British Columbia: in
farm lands, In mining and other enter
prises has expanded the field of De-
troit institutions Detroit capital is
constantly going into the development
OF Michigan, especially In the north
ern part of the state Mining and
manufacturing are the chief channels
for investments in that part Of the
state. One OF the largest organiza-
tions for the development of the north
ern part OF the state in which Detroit
capital is interested Is the Lake Supe-
rior Iron & Chemical Co.. which has
iron. steel and chemical plants through
the upper peninsula There is also
considerable Detroit capital invested
in cement plants throughout the state.
Through these investments OF De-
troit capital in all parts OF the coun-
try, investments which are constantly
growing larger and more important,
the influence of Detroit banking insti-
tutions has grown to be considerable
factor in the financial affairs of the
country
There has been a constant increase
during the decade just closed In the
prosperity OF Detroit banking institu-
tions. All of them have been paying
dividends ranging from six to twelve
per cent on their capital and have
made large additions 10 their surplus.
One has already started work on a
fine new building and another has
plans completed for big office struc-
ture upon which it Is expected that
work will soon be started.
There are few large cities In the
United States that can point TO bet
ter record in their financial institu-
tions than can Detroit. They are all
sound. solid and conservative. but
they have shown themselves capable
OF meeting the needs of large vol
ume of business which sprang up al
most in a night, with energy and pro-
gressiveness that are seldom asso-
ciated with conservative banking.
The recent threatened crisis in the
automobile business in Detroit was
largely averted by the sanity OF the