The Hattiesburg news. (Hattiesburg, Miss.) 1908-1917, 1912-02-06

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Ter election. Whether this inyestiga-
ton has been prompted by political
motives, personal jealousies or specu-
iatlve purposes, it should be severely
discouraged by sane business men.
what would happen If number of
our financial institutions, the savings
banks, for instance, were to be put
under the searchlight for the enter
talnment of public wholly ignorant
OF financial transactions The result
would be immediate scare and run
on the concerns affected, no matter
now sound or we'll conducted they
might have been. Whatever object
Ions there may be to the concentra-
ton of banking power in New York,
an investigation instigated for such
reasons as are behind the present
movement is wholly unwarranted and
threatens serious consequences. There
may be an undesirable local concen-
tration of credit institutions, but an
awakened public opinion and a spirit
or independence in business opera
lions is the best corrective of that diff
hculty. A certain degree of concen-
tration in banking power exists at
every financial center in the world.
1t is natural and inevitable, and is al
most invariably used for wise and
prudent ends. The abuses of such
power are too rare to call for serious
attention, much less a public investi-
cation. There is no such thing as a
Money Trust" in the correct sense of
the word, for it is impossible to ere
ate a monopoly in either credit or
money. The supply of both is too
great and flows too readily from one
point to another to allow of cornering.
If the terms which one lender offers
are too exacting, there are always
plenty of lenders available, if sought
after. Great as is the banking power
OF New York, it is only fraction of
that of the entire country, and it's in
tluence is commonly exaggerated.
Comptroller Murray is authority for
the statement that the combined
banking power of New York, Chicago
and st. Louis, three of the principal
reserve cities, is only about one
fourth of that of the entire United
States. If it were possible to create
Money Trust" in this country, bor-
rowers would turn to Europe for aid
with a promptness that would quick
ly break any monopoly here.
The general outlook is not without
its redeeming features. Chief of these
is the plentiful supply of cheap money,
although that, of course, Is largely
the result of inactivity. Our financial
situation is exceptionally sound
Speculation is at the minimum, and
liquidation has eliminated many weak
spots. This applies not only to fl
nancial affairs, but to business in gen.
eral. The long period of conservat-
ism which the country Is passing
through is after all building a sure
foundation for a fresh forward move
ment when present uncertainties have
as they ultimately will.
The surplus reserve of the banks at
New York now stands at about $45,-
10000, the highest point for num-
her of years at this period. Our fl
nancial strength has been further
of our foreign trade, the excess of
exports piling up our credit balances
upon the other side higher and high
er. This and the relatively better
rates for money in European markets
have enabled our banks to extend
their advances to Germany, which ma
tured in January thus facilitating the
placing of the recent $125,OO0,000 Ger |
man loan in Europe. 1t is estimated
that American loans abroad today run
as high as $150,000,000 or almost as
great as at any time during 18Th. |
Gold exports to Europe have been an
ticipated for some time past, and
must be welcomed by local bankers
because it will tend to make interest |
rates somewhat more profitable The
most disturbing influences on Wall
Street have been the developments |
st. Paul, the Hartman |
lines and the Steel Corporation. All |
of these great concerns are suffering |
from diminished profits owing to the |
awkward combination of decreased |
revenues and increased expenses. In
the case Of Steel considerably larg-
er volume of business was transact
ed in November and December, but |
the reduction in prices Offset these
gains and accounted for the heavy
in profits. The winter has