Albuquerque evening herald. [volume] (Albuquerque, New Mexico) 1911-1914, 1913-11-17


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Sos control entirely out OF the discred-
ted hands 90 the bankers.
The bankers resent these inslnua-
lions. They find nothing In the bill
warrantlnE the belief that il viii
seriously affect stock speculation. &c
might result In narrowing the nuc-
tuations IN Tho stock market hy REM
dering the money market moro
steady. hut New York viii remain tho
financial center Of the country. and
the stock exchange win continue.
whether this bill be enacted, modi-
fled or defeated.
The truth * that there arc two
distinct kinds OF banking. aud separ-
ate movements for their reform have
become merged into one. ON the ono
hand there is Investment banking.
This is the banking that supplies
large amounts of capital TO corpora
lions hy the sale of stocks. or makes
iong-timo loans 10 corporations or
municipalities in tho form of bonds.
u Is very profitable. and ID is large.
y In the hands Of private banking
iTms, the greatest of them being in
New York. They are not under gov-
eminent supervision or control.
ON tho other hand there b. COM
merciai banking. which does not sup
ply capital, but which augments
capital by short-time loans To indie
Vidudls. firms or corporations. usually
without security. th credits being
largely based on tho borrowers own
statements regarding their financial
condition This business is done on "A
narrow margin of profit. and 70 is
transacted by about $4,000 NATIONAL
and state banks In every city. town
ana village Ia the country. They are
an under close governmental super
vision
Investment banking has been tn
subt2ct OF the politicians attack ON
Wall street" eliminating in the PaIo
committee Investigation.
Commercial banking Is conducted
on "a hiFh plane of Integrity ana cf-
ficiencY and les only fault b. the
hack ot system which win prevent
panics TO that end tho CONNER
cial bankers themselves have urg.I
reform for many years
Many unWnrrannhie conclusions
were drawn from the "rcvelatious
OF tho Pujo INVESTIGATION. but what
ever there is in the minds of the.
people about credit circles OF inclu-
sion and exclusion. or tho monty
trust, on huge unwarrantcd prn0.s
on tiotations of stock. has to do H.tl
investment and not with commero $40
'anklnE So the politicians make
speeches about Investment bankfne.
and vote for Dim aat changes CONE
mcrcial banking and leaves wnut they
nave IN mind absolutely untouched.
The commercial credits OF ms
country are today not only open %
everyone entitled Go them. but there
ie the kecncst competition Co supply
Them. We wonder 81 those who a. 70,
otherwise ever heard Of tho ubiqul
t"us note broker Within the last
score of years the business of supply
ing the credit of the banks to desorv
ing borrowers i0f a small commits
SION has grown 90 enormous proper.
ions These commercial paper houses
nave mon travelling tll over tho coun
tr} offering tp seli credit as persist .
entity oa the travelling statesmen ui
houses offer tu sell dr,
gods or groceries Tho business they .
'",' unions
d. ,' =, lD.t, u', mat "a Tow of the p.
'h ,a, '','",''' ''nNs particular" IN
ne urge ISSUES GOT bonds brought uut I
t t, '',''",' ''IN'ls D'l lh'l" De- F.
49,. D." ,,,' "." olil l' STOP ih'm /
!. w. .'', '' '.ld he 81 ''lninl1 .
.,, ~, ,,i''.'S i Ih''' "'l,' Ih'' /
I. ,,',. ,,''.''' no." from Participation /.
-, nv ..l 'i .l'n' SUI 'n' gro ''
'',,,,..,, ''I ''hNs nave o.
.,.,. t'h'r WIN
49,. ~. ''t''-' 1'l"n OF the
-, ma n"n'a Come
..,,'''' .' ...'f'ini'' a." not 500
,,.,.,, "a. '''''' "'' '''uIH poo imposed
.,,. '''' '.t' ''''h "i "'hhh' cove
n M. aE... ,',.'' .'."usc " i'" 'ln"s /