Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-02-03

The most conservative banking in
stitution in the world, the Bank Of Eng
land, has startled bankers, business
men, statesmen and economists every
where by suddenly giving increased
publicity to its affairs. In all probable
ity this change in attitude is due to the
American business influence which
gradually Is permeating British AFFAIRS.
Just how the financial and business
community of England is taking the
change Is reflected in the expression
Contained In the Monthly Review of the
Midland Bank, Ltd. one of Englands
largest private banks, which says:
1.-THE Old Lady of Threadneedle
Street has never been laxative dame.
It has always been extremely difficult
to draw her into conversation. She has
followed the principle of never speaking
unless spoken to, and even then in the
fewest possible words. The new bank
return therefore, represents definite
departure from previous policy. The
Old Lady is telling us little more OF
her business, and we are grateful Tor
this broad-minded concession to the
growingly insistent demand for fuller
information on matters of vital public
Importance. A hundred years ago the
Old Lady said nothing about herself.
No law required her to reveal her posi-
ton, week by week or year by year, and
she did not volunteer the information
To Americans. the fact that bank
of Semi-public character should go on
year after year, transactfng the business
of the financial community as we'll as
the finances of the state, seems almost
inexplicable. When our own Federal
Reserve act was written, 1t was provided
that each Federal Reserve Bank should
publish each week full statement re-
vealing its precise condition-capital.
surplus, volume of loans and discounts,
acceptances, deposits. notes outstanding
and all other information. This has
been done regularly. and most daily
newspapers publish the figures. NO one
in the country can complain that ne
does not know where the Federal Re-
serve System stands.
Also national banks are required by
the controller of the currency to make
periodical publications of the details
of their condition. In like manner the
banking commissioners Of the several
States require reports from State
chartered institutions.
Morgan Bank Publishes No Statement.
There is one conspicuous exception in
the United States. especially conspicu-
Gus because of the worldwide fame OF
the ulSlllu6kOus hC OAAAhAAS AASNS~ -
J. P. Morgan has never published a
statement of its condition, and there Is
no law now existing which requires 1t
to do so. It is not a national bank. nor
is 1t a State bank. Neither the Federal
Government nor any State government
has the right, under existing law. to
examine it or require publication OF
its accounts. 1t is a purely private BUSH
ness. None but few officers OF the
bank knows what its deposits are or
the amount of its loans and discounts.
1t is nobody's business. No one has the
right to demand statement OF account
from J. p. Morgan any more than he
would have the right to accost a
stranger on the street and demand to
know how much money he had in his
pocket, how much in his bank account
and what property he owned, what
debts he owed.
That was the situation of the Old
Lady of Treadneedle Street, term OF
endearment used in London to denote
the Bank of England until 1888. In
that year Parliament required that the
Bank of England provide the chancellor
of the excheQuer with weekly state
ment of certain items. and that the
chancellor should publish the statement