The Washington herald., 1919-06-10
BANK MERCER
| TO AID MILLS
New Institution in New
York Look to Southern
Textile Men for Support.

Probably the coincidence was ac-
cidental that announcement should
have bees made that two Of the largest
banking institutions OF New York
have united to- incorporate q textile
banking company on the day when re-
ports were received In this city Of
the meeting of the American Cotton
Manufacturers Association at Atlantic
CITY. 1t may be that the cotton msnu-
facturers. many of whom are from
the South. will have no need TO utilize
the facilities which this new textile
banking company expects to offer.
Nevertheless. the probability n strong
that a powerful financial institution
will. in the course of time. find much
business coming to II from the textile
manufacturers Of the South.
This Is a step further in the oirec-
ton Of the elimination Of factors or
commission houses. For many years
concerns of this kind have served
chiefly MS mediums for financing TIE
fundamental requirements Of MILLS
and also in the distribution to con-
sumers OF the products Of the mills
In other times some Of the commis-
sion houses made a great deal OF
money. Some of them were the ex-
elusive agents for large textile indus
trial companies especially In New
England and upper New York State.
They served as bankers for the manu-
facturers, frequently making large ao-
vances upon the goods sent to them
for sale. receiving interest on the al
vsnces as well as excellent commis-
sion upon the sales OF the textiles.
Fifteen or twenty years ago II was
observed that some Of the factories
and commission houses were retiring
from business believing that new con-
ditions and opportunities had arisen
which in the course of time would
seriously cut into their business. NOW
the Guarantee Trust Company. which
is the largest institution OF Its KIND
In the world, and the Liberty Ma
tional Bank have united in the or
ganization Of banking company
whose exclusive business will be the
financing Of the needs Of the textile
manufacturers, the furnishing of aid
In purchasing raw material. and this
will be of much consequence to the
South, also providing other facilities
which will make possible a great ex-
pansion of the textile industry.
This corporation is to have paid
UP capital and surplus OF s.. 500. 900, and
the fact that E. c. Converse is pre-
sumed to have conceived the Idea. OF
itself furnishes sufficient guarantee
Of the financial character Of the pro-
posed corporation.
The Morgan Interests.
The inference has been drawn
that this new departure from old
methods reflects what is sometimes
called the Morgan interests. That
undoubtedly Is a superficial view 10
take. ]. p. Morgan and Company
are of influence in the Guarantee
Trust: they also have close asso-
Citations with the Liberty Bank,
Morgan and Company. was formerly
in some executive authority IN the
Liberty Bank.
But the Guarantee Trust Com
pany and the Liberty National Bank
are not depende mt for their prestige
on J. p. Morgan and Company. al
though it IL true in a sense that a
certain family relation is estab-
lished between these institutions
and ]. p. Morgan and Company as
there also is between ]. P. Morgan
and Company and the Bankers
Trust Company and one or two
others.
One Of the unforeseen results OF
the European war is the opening OF
opportunity for very great textile
expansion in the United States. In
this expansion the South will prob
ably be pre-eminent- The cotton
goods. which are manufactured in
New England and Northern New
York are mostly OF a different quail
ity from those which the newly es-
and now prosperous cot
ton mills of the South are making.
1t is probably the cheaper form OF
cotton cloth and cotton goods which
will be demanded by other countries.
by China and by South
America, and the opening OF the Pan
anna Canal. as well as the establish
ment of cotton mills in the South.
which have been able 10 take advan-
tage OF cheap power and to secure
ample labor, will result in the textile
manufacturers of the South finding
il possible to meet the demands Tor
the kind OF cotton goods which tney
manufacture.
At the convention at Atlantic City
much emphasis was placed by the
speakers upon the opportunities which
have now come for vast expansion OF
our export textile trade The cotton
manufacturers are confident that Con-
gress should fixe a tariff rate high
enough to protect the American tex
tile manufacturers from goods which
are manufactured by labor which Is