The Birmingham age-herald., 1912-03-03
NONE THRUST PROBE MAY BE VALUABLE Clear Understanding of the
 Banking Situation STREET IS BULLISH Wall Street Never Bearish-Morgan Accused of Being Power Behind
 Alleged Trust - Wabash
 May Be Acquired
STREET IS BULLISH
By PRESTON c. ADAMS


 New York, March 2.--(Special)-If the congressional investigation of the sU- called money trust will result n a clearer understanding by the people of the bank ing situation in this country and conse- quent reorganization of the system along scientific lines it will not be an unmixed evil by any means. This is the opinion held by many conservative business men and financiers.
 One of this class In speaking of tie situation the other day said
 "To deny that the banking resources Of this city are concentrated in the hands of a small group would be useless. The central figure of this group is J. P.aMor- gan. Practically every bank and banking house in the city is subject to his influ- ence.
 ITO state that all these bankers are de- pendent upon what one man or group of men order or desire would be a dangerous half truth. Concentration Of banking power has been a natural development, and the leadership vested in Mir. Morgan has been a result of his exceptional capac- ity The actual control of the great ma iority of banks in the city is scattered among thousands of individuals.
 Every country of any commercial or financial importance has witnessed coll centration of banking capital like that in New York, but in the great European na- tions the various governments have re- organized that a concentrated banking power should be regulated by the govern ment. but be independent of it in it's banking operations
 There are only two dominated and one independent banking groups in Wall street, the later made up of small lnst- tutions and commercial banks not con trolled by interests in the other two groups. Before the panic of 1907 there were two three small independent groups, but these are now merged. Before the panic there was considerable rivalry for control but today competition in most cases is limited to credit, and banking commissioners, superintendents and comp trolers are beginning to realize that even credit should be regulated or controlled. This stride in banking regulation is ranked as similar In economic development with the recent tendency of clearing house as sociations to hold regular examinations of member institutions"
 In the past three years the lesson learned from the panic of 1907, that it was necessary for the safety of indiYidual banks that all banks work together. has been put to practical account It is not uncommon to have the president of bank in one group on the executive board of an institution in another. It has been found both natural and eXpedient, owing largely to the position that New York city banks hold in relation to the hanks in the interior that this community of in- terest should be cemented as much as possible without lettering credit What are known as the Morgon group of banks have capital and surplus of $1S2 6S7 200; fle posits of zoo and total assets of $,109, ,29l, 600. The Standard oil group has capital and surplus of s1S7. .552 200, deposits s707. .3l2, 200, total assets $S37, ,965. 800.
 Together they pretty nearly dominate the banking situation in New York and through the dominance of New York in finance that of the country
 Often the assertion is made that Wall street is bearish. It never is It can only be bullish; when it is not bullsh it is de- spondent. It is never bearish, in the sense of wishing prices to fall. Only a very small majority of Wall streets people are ever bearish. Spectators are hated by every one else in proportion they are successful Wall street cannot subsist upon bear markets. It fattens on bull market, and has to live up it's fat during bear market No successful man in Wall street is ever without securities. He may begin bear without stocks, hu, If he makes money he will have to invest it, and he will invest 1t in securities.
 One who expects a bear market may sell his surplus securities and perhaps pare down his investments. but he will never theless have to carry investments through the fall in prices and see them shrink. He is lucky if by being short of some stocks he can make a speculative profit suff- cient to cover the loss by shrinkage in his investments l1e may describe him self bear, but he would rather see a bull market and be long of stocks than a bear market and be short of stocks.
 The broker who strolls up and down through an empty customers room and then down the hall past dozen empty private rooms provided for the use of clients. will tell you how much money