Evening star., 1926-12-05
KENTUCK|AN PUTS
/ LIFE IN OLD BANK
Percy n. Johnston RebuiIds
New York Chemical Ma
tionaI by Methods.
BY Nj. S. RUKEYSER.

When Percy H. Johnston, president
Of the Chemical National Bank Of
New York, migrated from Kentucky
he made no attempt to change his
personality and his manners to flt
the conventional notions of what
New York banker should be. He has
retained the old neighborliness Of
Southerner
On almost any week end at this
season Of the year this son Of Ken
lucky can be seen at his country
home at Montclair. n. j., chopping
wood. There is a survival of the har-
dihood Of Kentucky pioneers in Mr..
Johnston's makeup. In physical ap-
pearance he is a tower Of strength
tall. broad and forceful-yet essen
tally friendly and human.s He has
brown hair and eyes. Being president
OF a bank has not made him upstage.
He asks his associates and subordi-
mates to criticize him and to think
independently, rather than to 'yes"
him and fiatter him. In his forty
sixth year, he Is president Of one of
the Oldest banks in New YOrk-a vet
eran of nearly seven years In his
present Job HIS came to the bank as
senior vice president in 1917 at the
age of sc.
Has Expanded Bank.
Mr.. Johnston has not merely filled
q role usually occupied by older men,
but he has suffused the institution
with new energy and vitality. The
bank has sought new business on It's
old reputation, and this policy mas re-
suited recently in striking expansion.
Mr.. Johnston learned the ins and outs
10. III,
iner. thus getting an extraordinary
opportunity to compare methods that
fail and ways that succeed. The ordl-
nary bank examiner eventually gets
the attitude Of a captious critic ana
loses the impulse to create and lead.
But, as well as being a student, MI.
Johnston Is a dynamic salesman. he
can bring in new business.
Apart from saving wood, Mr.. john
ston reveals his individuality OF taste
by his bizarre hobby for canes. HIS
friends know of his desires and bring
him canes from all parts of the world
He now has more than 400, and wears
a different one every day. He knows
who gave him each cane and where
II came from His vivid memory also
serves more practical uses.
At the age of 16, Mr.. johnston
started as a clerk in the Marion Nat
ional Bank at Lebanon, KY. his plr'h'
place.
Ten years later he became a nat
tonal bank examiner, then cnali illian
of examiners of all States south or
Ohio and east of the Mississippi, and
eventually one Of four national bank
examiners at large. In 1913 he joined
the Citizens National Bank of Louis
1,ilIa as "a shier and became vice pres
ident in 1915.
Sees Prosperity Ahead.
I discussed current business pros,
pects with Mr.. Johnson. he expresseu
the opinion that America Will pe pros
porous as long as labor IS 1uliy EN-
ployed at high wages and saw nothing
on the horizon to suggest that this
basis for prosperity would not be
available in 1927. Mr.. Johnston be-
lieyes the long term commodity price
trend is gradually downward. and is OF
the opinion that this development Will
help America to compete In markets
for world trade after Europe has been
restored to normal.
The discussion led to comment on
Italy and Mussolini.
Though l am not unmindful OF the
good things Mussolini has done Tor
italy, my reading Of history indicates
that relationships do not ultimately
succeed. When a man seizes all
power in his own hands he becomes
surrounded by fatterers rather than
by advisers"
The conversation next turned to the
South and the cotton slump. Mr..
Johnston was hopeful about the out
come, although recognizing the dis
appointment of the Southern planter
in getting less than expected for his
cotton crop. Slumps, he observed, al
ways help the movement toward
diversification in the South. In view
of the marked prosperity OF the
South in recent years. Mr.. Johnston
felt that the section could get through
the present strain without substantial
freezing of bank loans and without
retarding. except temporarily, the
long term movement toward expan-
sion in the new South.
Concerning general business pros
poets, Mr.. Johnston was impressed
by the lack of accumulations of in.
ventories of merchandise. which in
the past have usually accompanied
major slumps. Mr.. Johnston ascribes
the current low stocks to confidence
on the part of business men that the
new efficiency of the railroads assures
quick deliveries. Mr.. Johnston said
that the swift movement Of freight
was in part due to the new competi-
ton of motor trucks, which had re.
lfeved the railroads of short haul
freight and thus freed cars for long.
haul movements. which in the main
is more profitable. Mr.. Johnston also
recognizes that better transportation
methods used by the railroads and
more modern equipment have also
contributed to the current efficiency
of the carriers.