The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1912-03-08
SHOW GOOD GAIN.
fcontlnued fron Page ID

In other words, the banks or the
Clearing House association of New
York now possess resources only a lit
| tie under billion dollars and, if tho
! gain for the next three or four months
is proportionately as large as was the
case in the two months ana a naif
preceding February 20, then the resour-
ces of these banks will, before the
end of the present fiscal year, be in
excess of 2 billion collars
About one-half of these resources is
in the form of loans and discounts.
About 200 millions are in the form Of
stocks and bonos, about $50 millions Ia
the form of exchanges for the clearing
house Or items due from banks and
bankers. On the Goth of February our
banks were carrying approximately
23S million dollars in specie and legal
tenders
The aggregate liabilities of these
banks were, of course, equal to tns
aggregate resources, and 1t is observed
that of these liabilities lbs millions,
round numbers, represent capital, near
ly IT'S millions represent net profits and
a little over 1 billion, 500 mlInons rep
resent deposits of all kinds
The First Point.
The most expedient way of beginning
an investigation of these institutions
along the lines suggested by the term
money trust would be the determine
ing as accurately as possible exactly
what the aggregate deposits are made
up of-how much cash and to what
extent drafts, checks and other nego-
table instruments represent these de-
posits and, after that, where they come
from. For, if there is to be a thorough
investigation of what, for convenience.
may be called the money trust, it is
vital that the congressional committee
should learn the sources from which
these aggregate deposits of 1 billion,
haU
committee would probably be astonisn-
ed to learn that no small part of them
has been received from other banks and
by banks which do business
in the west and in the south. But these
banks are also carrying on their own
books as deposits the funds which they
have deposited in New York. There
fore, if there is to ne a good under-
standing of what the real deposits in
the national banks of the United States
are, it is inevitable that there shou.S
be thorough tracing back from the
bank Iedgers to the original deposi
tors of the course of these deposits.
1t would be found that the aggregate,
after eliminating duplicates and tripli-
Gates, would be considerably reduced
by the reason OF WOE
spread disposition of the national
banks to redeposit some portion OF
their funds in financial centers there
is undoubtedly an obstacle to the con-
centration into a few hands OF the
greater part of the cash and banking
credit of the United States. For all
that remote bank would have to do If
there appeared to be real danger of
money and credit monopoly in New
York would be to withdraw their de-
posits and maintain them exclusively
at home
Another Point of View.
Another subject well worthy of the !
scrutiny of the investigating commit |
ZEE If that committee be sincere IN Its /
purpose and carries on its 1nvestlgation
n good faith, would be the tracing |
back to the causes the comparatively
sudden and enormous increase of bank
ng transactions, deposits, resources,
capital, surplus, within the past dfteen
years. notwithstanding two panics,
one of them severe, the banks Of New
York and of the rest Of the United
States as well, have gone ahead accum-
llating vast resources and gathering
together enormous deposits building up
at the same time heavy SURPRISES. For
Instance, at the time of the first inau-
of President Mckinley there
was not a bank in New York city that
carried deposits in excess of thirty mil
ions. The Chemical bank stood at the i
head of the list, and it was thought
10 be an amazing thing that this inst1- /
.ution was able to report approximately |
was so far first that there was almost
no second. The banks of New York
which carried a deposit in excess of ten
millions at that time stood in the front 1
-ank. The National City bank achieved
in the opinion of bankers
when IT hquidated the Third National /
5ank and took over nearly all of its de- /
oosit line of about nine millions. there
oy almost doubling its deposit line
In banking circles it was looked upon |
~ 80
when the clearinghouse sheets showed
hat a national bank had passed the |!
Chemical bank in the amount of its de- \
1oSitS- When the City bank, about II
welve years ago, reported that its ag- Il
sregate deposits were in excess of a Il
hundred millions that report establish Il
d new record and there began even Il
It that time to be limitations that the
Institution would become the center of 1
powerful money group. II
The National City bank, presumably
he fayorite bank of the Standard OIL II
rust. surpassed in the amount of de-
'oSits the First National, which even
hen was recognized as an institution
n which Mr.. Morgan was especially in
crested For some time these two
'anks enjoyed exclusively such prestige
IS deposit line in excess of a hundred
Millions creates
Yet the report made to the comp
roller of the currency on February 20
moved that six national banks of New
FORK are now carrying deposits in ex-
ess of hundred millions, and one of
hem has a deposit line of nearly two
hundred and fifty millions
Another interesting feature of this
eport is to be found in the fig
Tres which show that the foster broti.-
r, SO to call it, Of the First National
'ank. which is the Chase National
las now passed the First National in
he amount of aggregate deposits. It's
eposit line amount to 1873 millions,
ound numbers, while that of the First
Satlona1 amounts to 1872 millions, Tee
hOnSand Yet it is mt sn Jtar-r long