The Washington herald., 1917-06-29

administration of Thomas Jefferson.
when Albert Gallatin was secretary
Of the Treasury. 1t was always sus-
pected that the government then at
Washington favored the organization
of new bank in New York The
first bank to be established here, the
Bank of New York. was recognized
rs Alexander Hamilton's bank. TO
Offset the influence Hamilton and his
friends possessed, Aaron Burr. by a
most clever bit OF legislative strategy.
WAS able to organize the bank of the
Manhattan Company. The Hamilton
bank was Federalistic. The Burr
bank was Democratic. Business men
in New York believed that the time
had come when another bank should
he established which would he free
from the political bias which dis
tinguishcd these two older banks.
They. therefore. with some difficulty
obtained charter. and when organ
lied the bank was the third of the
banks Of New York to be esta blishcd
Always this institution has been re-
Garded as very sound and has -four
ished. although it has seemed not to
keep pace with the trcmo ndous strides
taken by other banks since 1882. Its
has been cautious, bul
not too narrow and the institution
has moved along in a quiet, incon-
splcuouS manner apparently to the fUl!
OF its stockholders. After
Senator Burton retired from the United
states Senate, several opportunities
came to him for important service.
but he made choice OF the presidency
Of the Merchants bank. II it was his
expectation and that of the stock
holders, greatly and speedily 10 in
crease the busines OF the bank, then
at the time of the purchase Of the
of stock by the Royal Bank
of Canada. that expectation was not
realized. although there were reasons
for believing that in time Senator
Burton might bring the institution
such an amount of business as he
and those who made him president of
the bank hoped he would be able to
do.
Now. in a most unexpected manner.
an opportunity has arisen for greatly
increasing the business, the deposit
line and the resources of this in
stitution, bat 1t Is Canadian capital
that is to do Ills. Our financial re-
lations with Canada are so great and
are so likely to continue to be
very large, even after the war is
that banking capital of Can
ada perCeivinS IN opportunity for en-
tering New York City's banking field
at last negotiated for the purchase
of one share more than one-half of
the capital stock of this institution.
The Canadians paid 81, COO for this
stock They should be able within a
short time to bring deposits 20 this
1ank greatly in excess OF the amount
of money they paid for the control
Of the "a aa'tal stock.
The Merchants National Bank re-
mains an American institution. The
Canadians have simply bought the
majority of the stock. 1t must con-
form to the statutory laws. but the
new ownership does represent that
of interest between Can
ada and the United States. for it is
a community of interest due almost
entirely to the eXiGencies suddenly
created by the European war. The
London market was closed to Can
ada after the war began, but the
American market was open, and no
Canadian approach to this money
market was ever rejected.
The result is that Canada owes the
United States several hundred millions
on account of loans of all kinds made
In this country since the war with
Germany began. So it is presumed
that after the war is ended Great
Britain will be for a long time fully
occupied with domestic financial.
problems. entailing thereby con-
of the financial relations be-