The Alaska citizen., 1913-06-30

'''' '"'' if tNlAFlttt tl ms lfptNl Was incomplete and mtstratjHg. No attempt whatever was made 10 de- monstra'e whether the total amount of funds ill New York. belonging tu interior banks. usually rises or falls with the rise and fall of -call" inter- est rates in the autumn in New York. A matter of actual tac, the totals of such interior funds almost invariably fall as the the autumn rates rise. At every such season New York institutions lend. as they ought opui'ahly to ap large sums to their interior cores ponderts for crop-noyirg and other purposes. For jnsaace as 10 the season just past he amount of money being loaned. as of Noyem- her L.. 1912. to outside institutions by the eight largest New York banks cultivating this business is cs.t- mated IS approximating upwards of SSo.ooo,ooo,
 Yet. although such adequate eyi- denee was readily available. thc committees experts who testified on this point gave to you and to the public figures which. in their dodue- rions. were absolutely incomplete and incorrect.
 In offering 10 you such criticisms as We have upon the incompleteness 0f certain features of the testimony laid before you, We once more beg that you will not consider us as lack ing in respect to your committee. or as out Of harmony with its desires to examine certain features which as to the financial development of this country. have attracted widr- spread attention. We readily concar with you that many highly legitimate subjects of value 10 the public in ;erest have been developed. One of these =: which We call particular attention. has been the steady growth in the size of banks through cor solidation or increase Of capital Such growth in the size of banks in New York and Chicago has ire quently been erroneOusly designated before your committee as "concen- ration, whereas as We have hither- to pointed out the growth of bank ing resources in New York city ha~ been less rapid than that of the rest ot the country But increase of capital and merger O two er more banks into one institution with the same resources as the az gregate of the banks mersing into iD has been frequent, especially since January 1, 19eS
 DEMAND FOR LARGER BANKS.
 These mergers, however. are ? development due simply 10 the de mand for larger banking facilities 10 care for the growth of the eoun- try's business As our cities double and treble in size and importance as railroads extend and industrial plants expand, not only it is natural hut it is necessary that our banking institutions should grow ill order to care for the increased demand put upon them. Perhaps il is not known as well as it should be that in New York city the largest banks are far inferior in size 10 banks in the commercial capitals of other smaller countries. The largest bank in New York city today has resources amounting to only three fifths of in England. to only one fourth of the resources of the largest bank in France. and to less than one fifth of the resources of the largest bank in Germany. As the committee is aware, in New York City there are only three banks with resources in excess of $200.o0oooo. while there are ten such institutions in London. five in Berlin and four in Paris.
 NOT EQUAL TO coUNTRY's
 NEEDS.
 It is also perhaps not sufficiently recognized that, even as it $, Anne rican banks have not fully kept pace with the development Of American business. Hundreds of the financial transactions of today are so large that no single bank handle them This is especially true with respect to the great public which are essential for the development and welfare of the community. Even our largest banks are seldom able separately to extend the credit which such undertakings require, no one national bank being permitted by law to loan in excess of 10 per cent. of it's capital and surplus to any one individual or con cern. When it is remembered that literally hundreds of corporations in this country are now obliged to borrow annually sums of a million dollars and upwards apiece, il is ob- vious that the size of our banks must grow to keep pace with this demand
 Yet as 10 this natural dpvelOnment