Evening star., 1926-12-28
MEN AND MONEY
BY NJ. S. Rukeyser.
tCopyright. 1p26.l

| Benjamin Strong, governor of the
| Federal Reserve Bank of New York
| and unquestionably the outstanding
personality in the Federal Reserve
system, is recovering from a serious
illness.
Wall Street is gratified to learn
that Mr.. Strong is getting we'll, for
bankers in the financial district like
the governor as an individual and
are appreciative of his work in
developing Federal Reserve banking.
1t took the banking genius of men
like Mr.. Strong to convert the Fed
eral Reserve into an effective piece
of banking machinery. There was no
precedent to guide these pioneers, who
had to learn through experience the
nature of the tools they have to work
with. The system of having IL re-
serve banks instead of one central
bank, as is the custom in other coun-
tries, raised new problems. The ef
fect of recent practice has been to
coordinate the policies of the re-
serve banks and give the practical
result of having a central bank.
Strong Diplomatic Link.
Mr.. Strong in the last two years
has been the chief link between the
reserve system and the central banks
abroad. Mr.. Strong's recommends
tions have been received with cordial
good will in European countries,
which during this "eriod have re-
turned to a sound money standard.
And the Federal Reserve bankers
nave been eager to supply gold or
credit wherever they consistently
could. There has developed a new
rapprochement between the central
banks Of the world, which attempt
comparatively to direct international
financial adjustments, instead of leav-
ing them to blind chance. Central
banks for the time being act with
cisions on the world financial posi-
tions.
Mr.. Strong has been head of the
New York Reserve Bank since it was
established in 1914 His salary ts
$4,000 a year-which is less than a
banker of his eminence would receive
as chief executive Of a great National
bank or trust company.
Mr.. Strong was formerly president
of the Bankers Trust Co. of New
York.
He is now recuperating from a
severe case Of bronchial pneumonia
and expects to return to hts desk
early in 1927.
Individuals Count Less.
Individuals count less in the world
Of finance than they used to.
The business and money markets
have been so large and complex that
they have transcribed the power of
single men.
The passing of no Wall Street
leader would affect sentiment and
prices today in the way that the
death of the late j. Pierpont Morgan
did.
When the market was narrower,
the demise of conspicuous specula-
tor would throw chills into the Wall
Street community. Now scarcely any
man is big enough greatl-- to affect
the picture.
This is the day of organizations and
institutions-not individuals. Capable
business men and flnanciers develop
staff Of executives who can carry on.
Even enterprises in which the per-
sonality Of the founder has been fea-
tured frequently continue to thrive
and develop after he withdraws.
George F. Baker, chairman Of the
First National Bank and director Of
many corporations. is the only surviv
ing member of the big three of the
Wall Street of two decades ago. The
Stillman, who headed the National
City Bank, were the other two mem
bers Off financial triumvirate. Mr..
Baker, who will be 81 next March, con-
tinues active. His activities are so
far-reaching that he would be missed
probably moro than any other single
individual in the world Of finance. At
g. meeting of the Bond Club held in
his honor some months ago, Mr..
Baker was characterized by his asso-
ciates as the first citizen of New
York. 1t is wrong to think Of this
silent veteran as the grand old man
of Wall Street. for, in spite of his
years, he is strangely sensitive to new
ideas and new roads to progress. For
example, he is keenly interested in the
newer methods for diffusing corporate
securities among the masses. More
over, If venturesomeness is a sign of
youth, then Mr.. Baker is youthful to
an extraordinary degree. He has dur
ing his life observed the growth of
American industry and finance from
an infants to a giants stature, and
he therefore feels that he has good
reason to be optimistic.
DilIon's Influence Great.
Another figure who would also be
missed to q singular degree Is Clar-
ence Dillon, head of the banking house
Of Dillon, Read & Co, which, under his
dynamic leadership since the war, has
clearly become one of the three most
influential banking houses in Amer
lea. Unlike J. p. Morgan & Co. and
Kuhn, Loab & Co., which have shared
the responsibility for leadership more
evenly among the partners, the public
is inclined to think Of Clarence Dillon
as his firm.
Mr.. Dillon himself would be the last
to take this position. He gives credit
to his associates, and his success has
depended to large extent on picking
able men to head-up outside enter
prises which he has financed. He has
also built up capable personnel in