The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1912-05-17
CHANGE IS SHOWN
A New Banking Combination
Makes Radical Departure.
Strictly Commercial Bank Will
Use Giant Building.
To BE NO SPECULATIVE DEALS
Wall Street Is to Be Ignored
Altogether.
Why Didn't Wilson Attend
Hibben's Inauguration?

winch has D6en instructed ny the HOuSe
to make investigation of the so-called
money trust, would be well within the
scope of the original resolution. if it
were to make inquiry respecting the
latest of banking combinations in New
York and also into the reasons which
have made it possible for a national
bank of Chicago to secure pre-eminent
position in the United States with re-
spect to total deposits
1t is only a few years since the 1rv-
ing National Exchange bank of New
York began to advance beyond the rank
of the smaller banking institutions of
the city. The banking offices were m
the heart Of the produce commission
district and nearby were also some of
the textile jobbing houses. The bank
did very large business in discounting
commercial papers behind which stood
bills of lading. And business of that
kind has alwa.1s been considered as in
complete accord with the highest kind
of commercial banking. 1t does not
make very large profits possible, as
often do the underwriting syndicates,
but the business is steady, conservative
and safe, earning reasonable profits
for the bank.
The Mercantile National bank, which
has been for years located on Broad
way, near the Western Union building,
banking institutions of New York.
These two banks have now combined
and the Incorporated title of the en-
larged institutions will be the Irving
Mercantile National bank. Before the
year 1912 is ended this bank will occu-
py great offices in the gigantic Wool
worth building, which faces City Hall
park and will be, when completed, the
worlds greatest and Hottest structure.
The enlarged bank will have a capital
of four millions, a surplus of three
millions and assets of about fifty mil
lions. The popularity associated with
this latest combination of New York
banks. which it might well serve the
purpose of the Pujo committee to study
and explain, is the fact that a consid-
cradle distance north of Wall street,
the real financial center, one of the
greatest of New York banks is to es-
tablish itself, and, Furthermore, is to
establish itself upon the basis of an
absolutely exclusive and independent
commercial bank. If the present pur-
poses of the managers are carried out,
the institution will become the largest
of the absolutely independent CONNER
cia1 banks of the United States. To be
a commercial bank exclusively is to be
engaged in the discount of commercial
paper or kindred undertakings A bank
thus operated will yield no temptation
to lend money upon call or for spec
ulative purposes, and will at no time
be tempted to join underwriting syndi-
Gates. The undertaking seems to be
in the nature of departure from the
prevailing tendency which has led TO
the merging of so many banks in New
York City in recent years.
Some Great Financing.
There does prevail an impression that
this enlarged bank will, to some ex-
tent, represent the world-encircling
a. ,S<1I, l. - r.
the name of F. H. Woolworth Inter-
national trade of this kind, however,
the buying of vast amounts of commo-
dities which are to be offered for sale
in the shops which as a whole form a
chain around the world, as well as
the selling of these commodities, will
of itself furnish ample opportunity for
a great deal of commercial banking.
The dealing in foreign exchange. the
providing of necessary discounts which
the colossal undertaking of Mr.. Wool
worth will entail, will undoubtedly fur
n1sh very profitable business for this
bank Should the Pujo committee seek
information from the managers, it will
it is understood, be cordially furnished
to them.
The Greatest of American Banks
Reports have recently come from Chi
cago stating that the combined de-
posits under the control of the CONT
4011LdI anu COIn01GTClal National banks
of Chicago are two hundred and forty
million dollars, round numbers. The
latest report that came from the Ma
tional City bank of New York showed
the deposits in that institution to be of
two hundred and twenty-eight million
dollars, round numbers.
The Chicago bank has. therefore
reached and passed beyond the great
figures that represent the deposits of
the National City bank of New York.
The two institutions, from the point
of view of deposits, now practically
banks of London.
Should the Pujo committee see fit
to make a study of these figures it
would gain information, which in
stead of tending to show the rapid de-
velopment of a great money trust
would reveal the marvellous growth of
the west, so far as surplus money
capital is concerned. Furthermore.
the committee would learn that the
vast, deposits carried by the National
City bank and by the Continental and
Commercial National bank of Chicago
illustrate one of the phases of our
present banking and CURRENCY system.
Both Chicago and New York are CEN
trail reserve cities. Banks located in
cities which are not reserve cities may
deposit a proportionate part of the
reserves which the law requires these
banks to carry with approved banks
in the central reserve cities This
provision of our national banking law
serves to explain the record making
deposits now carried by the Continent
tai and Comm ercial National banks of
Chicago. Many millions have been de-
posted in these banks by banks es-
tablished in small towns which repre-
sent the reserves of these small town
banks: therefore, no small part of the
deposits of the great Chicago bank
and of the great New York Cit bank
are really duplicate deposits, because
they stand both upon the books of
these great banks and upon the books
of the smaller banks
There is, however, another point of
view. Between the Continental and
bank of Chicago and the
National City bank of New York there