The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1912-05-01
Secretary of Treasury Can Pre-
vent Move if Illegal.
GRIIatin and Hanover Concerns
VIII Merge.
WORK OF TWO GREAT men
John Jacob Astor and Albert
GaIIatin Founders.
To Test Feasibility of Attack by
Airships.

New York, May 1.-Just as the scope
of the examination which is to be made
by a committee OF the house of rep
resentatives into the so-called money
trust has been enlarged, there come
semi-authoritative reports of the con-
templated merger of two national banks
in New York city. A merger of this
kind could not be made, or at least
would not be made, unless the comp
troller OF the currency, at Washington,
saw no reason to advise against it.
The Hanover National bank and the
Gallatin National bank will, if present
plans are contaminated, be merged, or
rather the Gallatin will be absorbed
by the Hanover. The Hanover is one
of the great banks of the United States.
Its resources and deposits have adj
vanced in Arm and steady step with
the great advance in the resources of
several other of the national banks of
New York. 1t has been presumed to
be in cordial aff1liation with the Ma
tional City bank group. 1t has given
large aecommod ations to brokers, ana
no small part of its business has been
the lending OF money upon call. The
Gallattn National bank is, so far as
deposits, capital and resources are
concerned, numbered among the smaller
national banks of New York. But there
Is ugu0 Ol1S<p S4G6p+1AS, pOSS1Dly, IIl0
Bank Of New York National Banking
association, and the Bank of Manhat-
tan company, which has traditions so
rich or which is identified so conspicu-
ously with some of the great names of
American finance as is the Gallatin.
In the first place, the institution is,
from one point of view, the creation
of John Jacob AStor, the great Aston
of that name, the founder of the fam
lily. In the next place the Institution
Ras the first one in the United States
to choose as president a man who had
served as secretary of the treasury.
This precedent has been followed many
times, but the example was not imita-
ted until many years had passed after
the death of Albert Gallatin. In the
next place, the institution is rich in
the traditions of the wise counsel the
firm and yet kindly management and
the worthy example of business and
banking conscience which are asseei-
ated with the name of Frederick D.
Tappan- OF him, more than of any
other banker Of New York who had
as many years of consecutive service
in a single institution as he, it is Of
ten said that he served, not only his
bank, but the community and the coun-
try to good and great ends and that
he accomplished great achievements
without having materially increased
his personal fortune.
h.
These traditions and associations
will, in case of merger with the Han
over bank, become not the least cher
ished of the traditions of that great
institution.
Albert Galiatin. who was a United
States senator from Pennsylvania,
when only 81 years of age, and who
was compelled to give up his seat in
the senate because it was demonstrated
that he had not been nine years a citi-
zen of the United States when elected,
was secretary of the treasury for IL
years. He served through the admin
istration of President Jefferson and the
first administration of President Madi-
son. He supplemented the organization
of the federal treasury department by
Hamilton by showing how the debt of
the government could be decreased
the day Of its extinction could be con-
Adently predicted. He did that not
Withstanding the fact that while he
was secretary of the treasury Presf-
dent Jefferson bought, in the name of
the United States, the Louisiana ter
10 millions. The financing of this great
sem was. in it's technical aspects, per-
formed by Albert Gallatin,
John Jacob Astor's Friend.
when secretary Of the treasury Mr.. |
Gallatin was brought frequently into |
2SSOClaI1On Win the ITSI JOnn JACOB /
Astor. The two men were very con-
genial, although unlike in certain re- |
spects. Taciturn as Astor usually was,
he found his tongue when in the COM |
pany of Albert Gallatin. He spoke of |
ten with admiration of Gallatin's finan-
cial skill and administrative ability.
In the last year of President Jack |
sons first administration New York /
city was beginning to respond to the |
stimulus, commercial and Industrial, |
due to the opening of the Erie canal. |
New banks were organized and the /
and almost exclusive authori-
ty characteristic of the Bank of New
York, which was created by Alexander |
Hamilton. and the Bank of Manhattan /
company, which was created by Aaron
Burr. were in some measure threatened
by the new organization
The business circle with. which Mr.
Aston was identified was persuaded, in
1889, that there was opportunity for
another bank. Mr.. Astor was appealed |
TO, and said that If the capital was
hxed az S750000-a large sum for that |
time-whatever amount was needed to
make up the full capital he himself
would subscribe under one condition
that condition was the consent of Al
bert Gallatin, who was then II years
"a age. to serve as president. When
Nj Cssllatin heard that Mr.. Astor had /
made this a condition of his subsc-ip-
ton to the capital of the bank he said
he felt compelled to accept the offer.
he became president of the institution
and was associated with the bank
which was then called the National
bank, until mis- death, which took place
IS years later.
Galatians Confidence.
Much of the development of New |,
York banking upon strong lines was
due to the teachings of Albert Gala
Gin. He earnestly favored the organi-
cation of the Clearing House associa-
ton. And upon that organization. il
1883 the National bank became a char
ter member. it's Official number being
a. That number shows that this bank |