White Pine news weekly mining review. [volume] (East Ely, Nev.) 1910-1920, 1912-12-29

"a IS EH@@@+a
ind that The percentage both Of capt.
tai and OF resources in New York IS
less than It was then. In 1900 the
New York banks owned II per cent
of the eountry's banking capital. To-
day they own only 91z per cent. 1t is
more significant, however. that New
York's percentage of the country's
banking also show a ten
dency to decline. In 1900 the resour-
ees of the New York banks amounted
to 23.2 per cent. of the country's
banking resources. Today they
Mount TO only 1873 per cent.
Country's Resources Increasing.
A comparison of the growth of
banking capital and resources in the
several states since the year 1900
shows hat the banking capital
of thirty-nine other states has in
creased more rapidly than that of
New York. and that banking re-
sources OF Il states have increas-
ed more rapidly than those OF New
York. There exists. therefore, no
statistical ground for the popular be
belief in a growing concentration of
banking assets in New York.
Il is of course. obvious that the
units OF the banking business in
New York. as in all financial eenters
have of late been growing larger.
Growth and consolidation in bank
ing have been inevitable aecompani-
ments Of the growth and eonsolida-
ton which have been taking place in
manufacture and transportation. As
the business of the country has come
to be conducted upon a larger and
larger scale, it has required credit ia
eilities in larger and larger units;
but 1t is unquestionable that the size
of the banking units in this country
has increased less rapidly than the
size Of the concerns engaged in in
dustry and transportation.
/ Other Business Growing Faster
Than Banking.
Our financial institutions seem not
10 have kept pace with the growth
of business organization. The notes
and commercial papers issued b.
many industrial concerns today reach
sums much larger in proportion 70
the capital of our banks than the
usual proportion between industrial
borrowing and banking resour-
ces of a decade or more ago.
Under our Federal Bnking law. a ma
tional bank can lend oly 10 per ent
of its capital and surplus to any one
firm and a similar or more rigid re-
strietion exists in the banking laws OF
many states. TN New York State. a
bank or trust company can lend up
to 25 Per cen OF its capital. surplus
and undivided proits.) Yet the an
annual borrowings of certain indus
trial and railroad corporations today
amount TO considerably more than
the total capital and surplus Of our
largest banks.
New York Far Behind Other
Banking Centers.
One has only TO compare the num-
Der and size of the banking units in
New York with those of the financial
centers of other and much smaller
countries to realize how laggard has
been the movement towards coneen-
tration and consolidation in the Unit
ed States. In New York there are
only three banks or trust companies
with resources in excess of $500
100000 In London there are ten such
in Paris four. in Rome two. In Eng
land in 1908 ten London banks held
SO per cent. of the total commercial
deposits of the entire country: In
France. four Paris banks held So per
cent, of the total DEPOSITS. as report
ed; but the ten largest financial in
stitutions in New York today hold
only 10 per cent of the deposits of
the United States.
The Clearing HOUSE Question.
1t is interesting In passing to OBJ
serve that the charge sometimes
made that the clearing house in New
York City Is excessively limited in
membership and is tending to con
centrate the banking power of this
locality in a few hands, is scarcely
confirmed by a comparison of its
membership with that of the clear
ing houses of other financial eenters.
The fact is that the number of banks
belonging to the New York clearing
house exceeds by so per cent the ag-
J gregate of all the banks belonging TO