Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-03-31

The United States now has the third
largest bank In the world and the con-
solidation which brought this about is
expected to lead to series Of bank
consultations and INSCRIPTIONS which
conceivably might give this country
first place in the list Of great financial
institutions. Reports of the conSolida-
ton Of the Guaranty Trust Co. and the
National Bank Of Commerce In New
York have been fully confirmed by ON
Gal announcement OF their boards Of
directors. The consolidation results in
the standing of the three largest banks
in the world as follows: The Midland
Bank, London; Lloyd's Bank, London,
the name of which has not yet been
announced, New York. Each one Of
these institutions now has assets Of
more than $4,000. 100000, a sum Of
money difficult to think Of save In terms
Of Government finance.
What the New York consolidation
portends Is exercising the imagination
Of every one in the financial world both
here and abroad. Some 10 years ago
there was what might be called an
epidemic of bank consultations and
INSCRIPTIONS in England. The larger in
situations consolidated and then pro-
ceeded to absorb literally scores Of
lesser institutions until such vast
structures Of finance as Barclays Bank,
the Westminster Bank and the National
Provisional Bank arose. Indeed, Bar
clays and Lloyds have from time to
time both claimed to be second only to
the Midland In size. Latest figures
show Lloyd's now to be ahead.
Now 1t must be remembered that the
National (Ntftf ponk ~ I,nn
been the largest bank in the United
States since 1897. a period of more
than 80 years. Tremendous prestige
attaches to the premier bank Of a ma
ton and already it is limited that the
National City looks with dismay upon
the wrestling from 1t of the laurels of
first place. That an attempt will be
made to remedy this situation is not
doubted. Alone it has a capital of
$100,000,0 900. After the consolidation
the Guaranty and the National Bank
Of Commerce show but SIT, 1000, 900
capital. Neither before the consolida-
ton was as large. therefore, as the
National City. So by consolidating with
some other great institution the Ma
tional City can regain the title. AL
ready the names Of the Equitable
Trust Co. and the Farmers Loan g.
Auot w. AA1NC DCCA uiChtAOACO 40
possible subjects Of consolidation. With
these the National City again would
be at the top.
Size Affects Big Loans.
1t is not thought that the struggle
will stop there. Mere size Of bank
attracts business. Great corporations
take their business to great banks.
Under various laws banks can lend no
more than a certain percentage Of CAPT.
tai to one borrower. Under the ma
tional banking act the limit is 10 per
cent Now, take the case of a railroad or
a vast industrial corporation which sud-
denly wants many millions. 1t will go
to a bank. which has capital large
enough to meet its needs and that bank
will thereby grow still bigger by earn
ing the interest on the huge sum.
Before the recent consolidation the
bank ranking second in the United
States was the Chase National Bank
OF New York It, too, is expected to
take up the competition, and to do so
will have to effect consultations. Ru-
nnors are afioat that there may be q