Evening star., 1926-12-12
LEWIS E. PIERSON HEADS HUGE
BANK MERGER IN NEW YORK CITY
Chairman of Big American
Irving Trust
Company.
Banks of Nation Expanding
! to Keep Pace With Mod
ern Business.
BY NJ, s, RUKEYSER.

New York's new role as world tinan
cial center has placed larger responsi
bilities on the banks of America
metropolis.
In their cropping for added strength
with which to meet these new oppor
tunities and obligations the New YORK
hanks have added to their resources
through a series of mergers and con
solidations.
In the most recent bank amalgama
ton. the wedding Of the Irving anC
the American Exchange Pacific Bank
into the American Exchange-lrvine
Trust Co., which becomes the largest
trust company in the world and fol
lows only the National City Bank and
the Chase National Bank in aggre
gate resources. Lewis E. Pierson Is
chairman of the board of directors.
Mr.. Pierson is a tall. sturdy indi
yidual of Sc. with vivid blue eyes. a
ruddy complexion and iron gray hair.
In appearance he suggests a scholar
lie is forceful and dynamic, but these
qualities do not appear on the sur
face. At a casual meeting Mr.. Pier
son seems restrained, cautious and
passionately anxious to get the data.
Expansion of Business.
The growth of the banks Mr..
Pierson told me, as we chatted in his
Offices on the fourth floor Of the Wool
worth Building, "iS an attempt to
keep up with the expansion of busi-
ness.
New Yorks world leadership in
finance is resulting in increasing visits
of foreigners to American banks to
discuss conditions and to make con-
facts. 1 believe the foreigners have
found of interest the policy of Ameri.
can banks to limit credit instruments
for financing trade to reasonably short
maturities. I believe that the use Of
the dollar in financing world trade has
come to stay
The trust company which Mr.. Pier
son represents is essentially COM
mercial rather than financial bank.
/ asked Mr.. Pierson for his views con-
cerning the trade outlook.
THE prospects for business for the
next few months" Mr.. Pierson as
serted, ARE distinctly good.
Credit is in abundant supply for all
legitimate needs. Most banks, par
ticularly at this center. are not heavily
indebted to the Federal Reserve banks
There is a safety value In the cur
rent business situation in the custom
OF quick turnovers. Inventories are
low and, as a result of improved trans
portation, there is not so much mer-
Chandise in transit at any given time.
Savings Indicate Thrift.
Despite the unprecedentedly heavy
consumption of goods by the public
there are signs of thrift in the growth
of savings accounts and in the in
crease in the amount of insurance
written. Men take care of their OBJ
legations to their families through in
surance and are thus freed to be more
enterprising and to take somewhat
greater chances in business.
"A distinctly hopeful factor in the
United States is that organized labor
is favorable to means of increasing
production. AS result it is possible
for American manufacturers to pay
higher wages and still keep prices on
O competitive basis for export trade
in foreign markets.
Queried concerning the needs of the
business world. Mr.. Pierson said:
1.-The simplification and STANDARDIZED
ton movement. inaugurated by Secre-
tary Hoover, has recently gained great
impetus, and should be pushed further.
There is a new willingness to exchange
information with competitors and give
each factor access to the best knoWi-
edge of the industry.
another need is to train boys in
the elementary school for business.
Few go into the professions, and the
percentage Of those who go beyond
the elementary schools to the high
schools and colleges Is small. Boys
should be trained into the habit OF
getting the facts and thinking for
Themselves. They should be discour-
aged from accepting ready-made opin-
IONS"
Mr.. Pierson was asked whether he