New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-06-03
MONEY AND BUSINESS.

The business Of to-day is so huge that
It has raised the money distribution 10
an equally high point In volume. ana
compared with a quarter Of a century
ago business transactions involving
heavy financing at the present period
tower like a giant above pigmy. In
the passing Of routine life the people as
a collective body do not keep account OF
the worlds wonderful growth and. conse-
nuently of the prodigious sums of money
necessary to provide the circulating
media for carrying on the TRANSACTIONS
incidental to the various classes or COM
merce and industry. Some idea or the
enormous growth OF the twelve leading
cities OF the world, which are recognized
as commercial and financial centres, may
be gained from n comparison or popuia-
ton approximately figured from tne
closest relative official statistics. inc
cities chosen are London, New York
Berlin. Paris. Toxic, Chicago, VIENNA
ST Petersburg, Philadelphia, Moscow
Ruenos Ayres and Picking. In 1891 'he
regulation was about 1S.237O22; IN lsl1
the population is estimated at 32'lo'soo'
In 1870 business was scattered and the
volume of trade was inconsequen'iai a'
compared with 1912.
Such q combination OF Industrial IN
terests as is represented by our large
corporations covering the various lines
If business was then unknown anu
the sums ~ money needed TO conou''
the business of the world were small ny
com narison. With the worlds important
nonuIation practically doubling every
twenty Ave years. money ana business
must Increase accordingly. ana 'he
changes in applied economics when IN
ventions and scientific discoveries nave
made necessary will continue TO evolve
re,, nrobIems for economic analysis as
the world grows larger and financing ne
comes more important Money ana DUST
ness are not leaders. they simply lol'o"
the trond NJ development No example
cor IVA cited which is more emphatic
IN its impressiveness than the buiidlhs
NJ New York subways Before the SUD-
rava vere n part Of the city's institu-
t,ons Il was never dreamed that In l'l@
an authorized expenditure exceeding
$500 oO0. 900 would be required to insure
taking care Of only part OF New lork
nonulation passing to and fro In daily
pursuance ~ business and pleasure
The same vast increase In other
BRANCHES ~ financing Is In evidence. The
great railroad systems, the stupennouS
industrial combinations and the COZ"
,orc,a, aegregations in mercantile lines
ara all conducting business on scale
Of money requirements when "ou'"
bave been pronounced insane twenty
e,,o wears ago. To afford facilities ior
financing all these great civic. indus'rla'
ord commercial projects. banks and trust
cor,nanies have been enlarged. methohS
~ doing business have been changed
and mergers Of these institutions nave
taken place for the purpose OF conce"
trailing capltal and supplying hqulo
funds IN meet the imperative demand o'
tho times. Money and business can III
Hangar he measured by or considered
from tho conditions which obtained PRIOR
70 the Inauguration Of big things IN
finance. when the world was smaller ann
the geniuses of modern finance had not
been developed. When Alexander Ham
u,o, arose he met tho exigencies ol
his time and planned for a century OF
moro in his perspective Of requirements
for financial system; 30 to-day the
great f,nanciers are formulating prepar-
a,orv systems for financing the inoreas-
inc business Of the world. which cannot
be measured by the past but must DC
estimated for the future.