The Washington times., 1926-04-01
BANK MERGERS
REPORTED
By RICHARD HATTON

:. Following the recent purchase Of
the Citizens Savings Bank by inter-
ests connected with the Merchants
Bank and Trust Company and the
consolidation of these two institu-
tons under the executive direction
or President Peter A. Drury, of the
Merchants, there have been persist
ent rumors of further bank consoh'
dations in Washington.
These rumorS have not yet
reached q point of definite express
sion as to the institutions con-
cerned. Nevertheless, speculation
remains rife in the financial dis
trict and the wise ones are casting
about for pegs whereon to hang
their prophisies of possible mergers.
In connection with the nebulous
whisps of information regarding
loca1 consultations to the end that
there be fewer and larger banks in
the community, it is of more than
passing interest to note that the
trend in other financial centers,
more especially, in London and New
York, in recent years has been to-
ward consolidation.
In this connection Trust Com
panies, a magazine of finance, says:
New York viii soon surpass Lon.
don in size of banking units If the
present wave of consolidation is
sustained.
Such result would be logical
sequence to the transfer Of world
banking and financial supremacy
from Europe to the United States.
Amalgamation of the Chase Ma
tional Bank and the Mechanics and
Metals National Bank creates two
banking units in New York with
resources each in excess OF one
billion dollars, the absorption OF the
by the National City Bank adding
q substantial margin to the lead OF
the latter institution.
Huge as these aggregations are
they are still considerably below the
average Of 81 700, 100000 in resources
held by the big five" London
banks. The contrast Is more strik-
ing when it is shown that the five
big London banks, with their thou
sands of branches control combined
resources Of IS ,450, ,000, 900 or 80 per
cent OF the banking resources OF the
United Kingdom, whereas the five
largest banks and trust companies
in New York show combined re-
sources OF $3,750, 900. 900, or only 6
per cent OF this country's total bank
ing power.
The magazine says that banking
consultations are responsive to
economic urge and continues:
s'The epidemic OF banking con-
solidatfon is not confined to New
York. 1t is witnessed in other
large cities OF the country and is |
indeed prevalent throughout the
world. It Is q movement that is |
doubtless responsive to economic |
s~,@ &1.nR
graphical boundaries and finds its 1
reflex also in the consolidation and
creation of larger industrial and
business corporations.
At bottom there are motives OF /
accommodation to broader finan-f
cial and business requirements as
well as advantages OF economy and |
efficiency in operation"
The magazine concludes with a |
warning, or caution. regarding |
trust company consultations.
Plans for the new addition to the |
Washington Lean and Trust Com |
pany which will double the size OF |
the handsome building at the cor
ner of Ninth and r Streets are |
practically completed, and President |
JOHN B. Larner expects to submit |
them for the approval OF the board |
when authorization will be given to |
proceed Immediately with the work |
OF construction.
Contracts have already been let |
for the wrecking OF the buildings !
now occupying the frontage on r |
Street, which will be occupied by |
the new additions to the company's |
main banking building.
These structures were recently |
damaged by fire, and are no longer |
available for the business purposes |
to which they were put. They viii |
be torn down to make way for the |
new building.
The Washington Loan and Trust |
Company already is one Of the |
strongest institutions in the city, |
and It's present quarters have long
been a landmark in the downtown |
business section.