Atlanta Georgian. [volume] (Atlanta, Ga.) 1912-1939, 1913-04-03
0AORE BANKS
hEPOL|CY OF
MQRGAN HOUSE
Public Hostility to increasing
Concentration of Financial
Control One Reason.
BY 3. c. FORBES.

nave received PERMISSION 10 make
the following extremely important
announcement:
J. p. Morgan G. Co. have decided
not to acquire control of a single
additional bank, trust company or
other institution of banking nature.
The firm has concluded that cir
cumstances do not call for contin-
uation of the policy of extending its
strictly banking ramifcations.
Statement Is Satisfactory.
No statement could possess more
interest for the financial world. The
news will also be hailed with salts
faction by the general public, as well
as by Washington legislators, for the
universal impression has been that
the younger members of the Morgan
firm were determined to pursue the
policy championed so aggressively
by Henry p. Dawson.
That the change in the FIRMS atti-
tude has been influenced. if not who'll
ly caused, by the recent manifesto
tions of public and legislative hostil-
ity to the constantly increasing con-
centration of banking power can not
be doubted. George +. Baker. it will
be recalled, told the Pujo Commit
tee that he thought this concentration
had gone far enough.
l am informed, also. that certain
very large corporations, including the
United States Steel Corporation. will
not long continue to deposit the
whole of their surplus cash-occa-
sionally running into tens of millions
with the private banking house of
J. P. Morgan & Co.
Cared for Trusts Millions.
The Steel Corporations liquid cash
has ranged between s5O,OOO,OOO and
$75,OOO,OOO, the whole of which has
been intrusted to teh care Of Nor
gan & Co.
This enormous sum, it is under
stood, will be deposited in a number
of institutions, including the strong
est national banks.
The question of the advisability of
corporations engaged in interstate
commerce carrying huge sums with
private bankers was raised by the
Pujo Committee. and a modification
of the present practice is planned.
Otto III. Kahn, the most active
member of Kuhn. Loeb & Co. has
definitely decided, / am informed by
one Of his intimate friends. to give
up all plans for retiring at this time
from business to enter the British
House of Commons.
International bankers to whom
this information was conveyed re-
garded it as of great significance,
certain of them said they
had understood for some time that
Mr.. Kahn had arranged TO remain in
harness, and that Kuhn, Loeb & Co.
were to become even more active
than heretofore
Lively Times Are Expected.
you will see very. lively times
in the international banking bust
AlCoH lAOiAA INV ptAf Salu bllt VI
those in the inner circle. while
it is true that Mr.. Morgan had not
been directing the affairs Of his
firm for more than two years, his
personality counted tremendously
Morgan & Co, with J. z. Morgan
at it's head, stood in a class by it,.
self although I can assure you h3
never interfered with the running
of many so-called Morgan institu-
tons Morgan & Co. without j.
p. Morgan at its head will be a
very different concern. Its prestige
naturally will suffer.
There will be more competition
and less concentration. Kuhn, Loeb
& Co. will no doubt branch out. So
will Speyer & Co.
watch developments in these d.
rections."
The gradual decentralization that
looms ahead will be in harmony with
the democratic ideas of the citizens
of this Republic.