Evening star. [volume] (Washington, D.C.) 1854-1972, 1919-08-03
! SYMPOSIUM OF BANKING OPINIONS
tNote-The following publications
hank accredited EDITOR ~


Corn Exchange of Philadelphia
The contrast between the English and
the American banking systems Is. In
some respects, most striking. There
are fewer than eighty banks in all
of Great Britain. In 1913 twelve banks
had 5000 offices or branches in the
British Isles. These twelve banks have
since been merged into total of only
FIVE. It can readily be perceived that
such a network of branch banks ra-
dating from the great parent organi-
cation is a very effective system for
the development and financing of for.
eign trade. 1t means coordination OF
effort and service just as valuable
in the out of the way. places as In
the center Of things commercially A
noticeable feature of banking devel-
opment in England has been the de-
creasing ratio of capital and surplus
to deposits. In 1890, 1t was IS per
cent; in 1917, only s per cent; that is
to say, only $6.000,000 of capital and
surplus for every $100.000.000 of de-
posits. That is a small ratio COM
pared to the average in the United
States Five English banks, compris-
ing what is known as the big Five, "
have combined capital and surplus
of s350.000,0 and deposits and ac-
ceptances of over $1,000. 000, 000--a
rate Of about per cent.
A significant thing is the increase
| in the commercial banking in Eng
land. What were formerly merely
checking or deposit banks have be-
come commercial banks. But there
has been no special tendencies to go
after business the way the German
banks did. That Is to say, while the
facilities for commercial banking are
growing to meet the increasing need
Of the reconstruction era, the pro-
verbal dislike of the English to de-
part from old-established methods is
ing methods to meet the new prob
lens ahead.
National City OF Chicago-It is ap-
| parent that the era of cheap money
has passed for 1919 at least. The
whole country is absorbing more
| money because the vast volume OF
| trade that is being handled at the
present scale of prices requires an
exceptional amount of funds in the
daily, routine of ordinary commerce
\ The gold export movement is assum-
| ing sufficiently large proportions to
show that the reserve basis of ar
immense loan account is being ship
| ped to countries where 1t will dc
! the most good. This is as it should
| be. but Notwithstanding our strong
bank position 1t must be remembered
| that the financial demands of the
war-wrecked area will be the gov
erning factor in our money markets
for some time to come. The Federal
Reserve Board has the situation well
In hand, however, and it is apparent
that steps will be taken to avert, II
\ possible, the money market compli.
| cations which inevitably arise when
| the public is heavily interested in a
| spectacular stock market campaign
The banks everywhere are seeking
rover first of all, giving him the
preference in all periods of COM
petitive borrowing.
American industry is giving a good
account of itself and the steel trade
Is making consistent Roadway all
along the line. Export buying has
become an important factor as va
rious countries have applied for a
large aggregate tonnage and the
movement has only just begun. Prices
are not only well maintained. but
in certain instances they have been
advanced with wholesome demand
at the higher level. Germany is ex-
combating American competition
This will not count for much, how
ever until the productive capacity
Of German plants has been materially
increased. Owing to the serious
labor. troubles in Great Britain. II
producers to underbid the British
steel makers in competition for
profitable foreign contracts. The
domestic inquiry in various branches
of trade is charging owing to the
greater requirements OF the auto
consumers. The outlook for the steel
trade as whole is much better than
it was even q month ago. notwith-
standing the fact that July and
August are usually the slowest
months Of the year for the industry.
The railroads are getting a larger
need all that they get. Notwith-
stand an iRcrease Of s2s6.ooo. 900 or
ID ner cent in gross earnings for the
first ave months Of l91s,- as com
pared with the year before, the car
iriers as 2 whole showed a. decrease
Guaranty Trust Company, New
York-Removal of most of the Of
fetal restrictions on trade with Ger
many brings up questions which must
be examined closely II the effect OF
this action is to be efrectually fore
Facts viii be felt by the merchant.
the investor, and also by the average
citizen, there can be no doubt. The
problems involved overlap in the
case of each one Of these interests,
and are, indeed, fundamentally iden-
The concern of American manufac-
turers and exporters with this move.
which opens to them one of the
worlds important markets. is imme-
date and pressing. Germany is in
the market for cotton, copper, foods
and all the numerous raw materials
which in pre-war days supplied her
great Industrial centers. If she is
to continue as an industrial nation
she must procure these commodities,
and get them upon basis which will
make 1t possible for her to pay her
workmen, meet the obligations which
the peace treaty puts upon her and
at the same time sell the product to
her own people and to her neighbors
In competition with other Industrial
nations.~s
Discussions with American EXPORT
ers regarding the possibilities OF do
| ing business in Germany at the pres
emit time disclose the fact that not
only the extension of credit ranging
from six months to one or two years
is involved, but that the final guar
antee of payment is usually EXPRESSED
in marks. not in dollars. This is
due to the fact that the German gov
eminent has imposed restrfctions IN