New Britain herald., 1928-06-01
STAGGERING SUM
 OF BANK CAPITAL
Finances Various Wall Street
 Operations

New York, June 1.-tP}-Nearl, two score banks, localkd within q fadlus Of three blocks of the New York Stock Exchange. aid in financ. Ing the heavy trading in securities.
 Their capital exceeds $500.00o,. 900. their deposits $s.000, ,Ooo, GOO and they probably represent the greatest concentration of wealth ir the world.
 Wall Street has need of theil vast resources, for the Street is be- ginning to talk in terms of billions With brokers loans approa ching a $5.O0O.000.o00 total. s12,00O, ,000, ,O0O bond issues listed in the market and daily sales of stocks and bonds in the organized markets alone ap. proximating $4e5. 100000, millions have lost somewhat in significance.
 It is only in recent years that such immense funds have been ac- cumulated. The largest of the banks. the National City, capital ized at $90,O00,OO0, with deposits above $1,275,o0o.ooo. had a capital of only S1.0oO,o00 in 1901. Chase National. capitalized at $6o.0o0, 900, and Guaranty Trust, with capital of $40, ,0o0,00o, whose deposits approx innate $75o.00o.o0o each. have shown almost as remarkable growth. Banks with capital ranging from s10,00o,0o0 to 33o,O0o0oo and de- posits of $500. o.ooo.ooo up are nu- merous.
 Many of the banks have subsidi- aries doing a lucrative business in underwriting and distributing securities, the capital Of the sub sidiary often comparing tavorably with that of the parent bank. Ere auently the income of the subsi- diary Is sufficient to pay dividends for the bank, thus releasing for business use still additional sum.
 If, upon some almost inconcciva- hle occasion, the banks and their subsidiaries should be unable to ac- commodate the demand for funds. borrowers have only to step just over the three block radius and draw upon the $37S,O0o.O00 reserve of the Federal Reserve Bank Of New York. About half this sum Is kept on hand in the form of gold and gold certificates in vaults Of the bank of the United States Sub Treasury.
 Despite the sro~th in individual resources of these institutions, their number is increasing in the area surrounding the Stock Ex change. Their loans to any ono borrower are limited by law to 10 per cent of their available re- sources and as the borrowers have increased as rapidly as the borrow irgs. there appears to be plenty of business for all and for the addi- tional institutions to come. This is true especially since the legal list of investments for banks has been extended and banks have be- come partners in industries as woll as in their own particular field.
 The potentiality of such sum ;,s the 3S.o00.0o0,0 represented by deposits in these few banks rather taxes comprehension. Reduced to cash. the deposits would pay off the total national debt of every Central and South American republic and leave nearly enough 10 perform the same service for Austria. Bulgaria, Denmark. Esthonia, Finland. Greece. Hungary. I.atvia, 1.i'huania, Norway, Poland. Sweden and Swift zcrland.
 Removed to the Far East. the sum would last two years. without further income, in operating Ahe complete governmental activities of Australia, China. Dutch East Indies. India, Japan and New ZeaIand. IL would pay national defense bills for two years for the United States. Great Britain, Russia, China and France. leaders of the world in ex- tent of expenditures for defense purposes. Or it would pay for all the exports and imports Of the United States for A months on the basis of 1927 business.