The West Virginian. [volume] (Fairmont, W. Va.) 1914-1974, 1918-12-13
Us. BBNERSI RGE
TO RULE FINANCES
British Have Best Machinery, Amsrl-
cans Largest Resources.
AZ R1cHARD sPMLANE.


Editor Of Commerce and Finance =
and Special Writer for The West
VirSinian.
(Copyright. 1913, by the Newspaper
Enterprise Assoctation.)
At a gathering OF the members OF
the Council OF Foreign Relations in
the Metropolitan club the other Gay an
eminent Englishman made an elaS-
crate address in which he showed how
the financial center Of the world had
passed from London TO New York.
A prominent American 1inancier re-
Piled and insisted that so Tar as the
financing Of exports and imports OF
the world are concerned, London still
is supreme, and only insofar as loanS
made by the United States to the al
lies are concerned has the financial
center been shifted to New York.
Financial primacy viii go to the
nation that shows Itself best Fitted for
the work. At present the British have
the best machinery and America has
the largest resources. 1t viii take
some years to determine whether Lon
don or New York viii lead A great
deal depends on the measure OF sue
cess that attends our entrance into the
carving trade of the world II our
merchant marine Is able to compete
with the merchant fleets OF other ma
tons our position will be established
lH not, London VIII continue to be the
financial center.
European Bankers Prepared for Peace.
European bankers, on the face OF
things, have prepared more carefully
for after-the.war conditions than the
American finaucferS. For some years
the British and Germans have been
consolidating their banks into a few
powerful groups, until today the re-
markabIe spectacle is presented OF
five banks in Britain controlling prac-
ticalIy the whole banking system OF
the empire and three banks In Ger
many holding the purse,strings OF CEN
trail Europe.
The outcome of the war has rather
upset the German world program, and
Berlin bankers are likely to have their
hands full solving domestic problems
without adventuring into wider fields.
The 13 banks OF the world with de-
posts In excess Of 100000 0a are:
State Bank Of Russia. 81, 1926 65,OO0
London City and Midland 1,392,655,OOo
L1oyds .............. oo,o00.O0O'
Imperial Bank OF Ger
many ......--.....-.. 1,166,775'OOO
London County (West-
Minister & Parr's) ..... 1,054.485. 900
Bank OF England .-..... 894,S25,OO0
National Provincial and
Union COT London).... S77,280,0O0
Deutsche Bank........ 875,S45,OOO
National City. ---....-.. 6Sz'000'UO0
Barclays .....---....-.. o4S'VOO' wy
Banquc Russo AsiatiQue 5S9,635, GOO
Guaranty Trust. $1,000. 543,OOO.0OO
Russian Bank for For.
eign Trade. 510.0oo,OoO
The dgures Tor the German and Rus
sian banks are questionable, owing to
the depreciation Of the rouble and the
mark.
American Bankers Aren't "SIow."
The American banking strength is
far greater thar the tabulation would
indicate. There are $4,000 banks in
America. OF these 1911 are national,
1865 state and 1907 trust companies.
The deposits OF the New York banks
alone equal so per cent. Of the depos-
its Of the $500 banks in the five mann
moth British aggregations-
Naturally, New York gets first con
Stc9GdClOn WQSn &AUuSk4Cdu OGhAh4A6 40
mentioned. But New York, large as
is the part 1t plays, is not so dominant
as it used to be- Recently the banks
Of the middle west have been looming
up. A Chicago bank floated foreign
loan, the first time in history an In
terror bank did such thing. The
loan was not big but it marked a de-
parture in American finance. Recent
". too, western banks floated bond
issue for great packing concern and
sold the $50,0Oo,00o OF it within one
day.
ested in foreign trade. Some OF them
want foreign branches.
Until recently a national bank was
not permitted to have branches. Now
they may have branches in foreign
countries. The National City Bank is
Spreading out In various lands but has
less than two dozen branches. At
present America is handicapped sadly
in establishing foreign branches by
lack Of men trained in the field OF In
ternational finance.
Deposits OF the big American banks
are not true measures OF this strength.
Various groups are controlled by vari-
GUS interests OF are so closely affiliat-
ed as to be almost parts Of one tnst1tu-