The Washington herald., 1917-08-17
HOLLAND LETTER
The Biggest Daily
Financial News Feature Of
the Counhy's Best Newspapers.

At the beginning of this week there
was publication of the fact that ].
p Morgan & Company had drawn
upon the Liberty National Bank to
the order of the Dominion of Canada
by means OF a check aEgreGating
$50, Ill ,11l11. and this announcement
was substantially coincident in point
of time with the statement that the
Liberty Bank is to increase its capital
from 100000 to 100000 so that
capital and surplus will together
amount to 100000. But these two
announcements were nothing more
than coincident. Occasionally the
question was asked why j. z. Morgan
&; Company drew on the Liberty Bank
by means of a check which was one
of the largest ever drawn in New
York. The presumption had been that
J. P. Morgan & Company who rep
resented the syndicate that under
wrote the 800, 10000 loan to the
Dominion of Canada would have
made deposit of the funds in the First
National Bank.
The Liberty Bank however, has be-
come one of the strongest, although
one of the youngest of New York
banking institutions and it is in close
ldlllllN dAllhl4Nt WIN Nlit
tional Bank. One of the officers of
the First National Bank was, and pre-
sumabIy now is. a heavy stockholder
in the Liberty Bank shares.
This bank was started about the
time of the organization of the United
States steel Corporation. At first
there were brought into association
with it as executives one or two of
the officers of the First National
Bank. Its organization, however, was
regarded as an experiment. Its first
banking house was established near
the foot of Liberty street and within
stones throw of the Hudson River,
presumably because, in that vicinity,
some of the large manufacturing cor
porations that had opened offices in
New York about that time secured
business apartments there. Those
who organized the bank thought there
might be business enough in that
somewhat neglected vicinity to justify
investment of capital in small way
in the bank
z. c. Converse became prominent
ly identified with ii and the judg-
rIent of those who organized the
bank was within a few years vim
dicated. In time the banking Of
fees were moved to Broadway and
the business grew so rapidly that
it was deemed advisable a year ago
to secure larger quarters. One of
the reasons for the success of this
institution is to be found in the eX-
cellent judgment OF the directors in
selecting executive officers. Among
others of whom they made choice
was Henry P. Dawson and it was
his brilliant work at the time of
the panic of 1907. constructive and
executive work unsurpassed by any
other of the younger banking Off
GERS of New York, which fixed upon
him at the attention of the late j.
P. Morgan, resulting in Mr.. Dawson
becoming a partner in that house.
Other brilliant executives have been
transferred to important financial
of its executives to the federal gov
ernment.
Last week there was cleared, in the
New York Clearing House upon one
day, an aggregate of items amount
ing to $1.013, OOO,S ,SO4 This would have
made record had it not been that
upon one day early in September of
last year the exchanges aggregated
81. .O5S, ,926 OO0
OF course these large aggregates
represent special transactions, especial
ly war financing. 1t is perhaps more
interesting to make a study of the
balances which were paid in cash at
the clearing house. In order to balance