Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-06-12
new BANK MERGER
APPEARS CERTAIN
Chase National and National
Park Planning Pool of
Resources.
BY JOHN r. SINCLAIR.
Special Dispatch to The Star.

NEW YORK, June 12.-If the Chase
National Bank absorbs the National
Park Bank of New York its resources
will be on a parity with those of the
Guaranty Trust Co., which recently abb
sorbed the National Bank of Commerce.
When the deal is completed, and
there is every reason to believe it will
be, the Chase will have resources Of
about $200000,000 and deposits of
81 200, 000, 900.
But the Guaranty announced last
week its plan for increasing the capital
funds to 100000. When this is
completed the Guaranty will rank as
the largest in the country, from the
standpoint of capital.
So this new proposed merger will
place the Chase just step behind the
National City, still rated as the Nations
largest financial institution, for its re-
sources exceed $4,000, 100000.
The Chase-Park Bank merger will
make the tenth major bank consolida-
ton in New York this year-the preced-
ing one announced, to be formally COM
pleted July l, is the merger of the
Equitable Trust Co.-Seaboard National
B Ban nm o Its present resources are
The Chase National has been linked
in merger rumors with other banks In
recent weeks. The Irving Trust Co. is
one. The Bank of America is another.
Should either of these take place, the
Chase would become Americas first
bank in size.
The friendly yet vigorous rivalry for
hrSt place has conferred the Nations
business eyes on John McHugh. former
Iowa banker, chairman of the Chase
National, and Charles E. Mitchell,
chairman of the National City, who
began his business career in Chicago.
Paul M. Warburg, president of the
american International Acceptance
Corporation, outstanding student of
world banking conditions, member of
the first Federal Reserve Board, has
expressed himself much in favor of the
new Bank for International Settlements.
"A most ingenious and happy idea,"
says Mr.. Warburg. mot only because
through its medium it has become pos
sible to substitute group of the best
business minds as judges for a political
party, but also because in the field of
economics and finances the bank is
likely. to play the part of a balance
wheel. 1t is likely to act as stabiliZer
not only between Germany and her
creditors, but also between other coun-
tries"
Secretary of State Stimson has al
ready ruled out Federal Reserve off,
Gals from the service of this new bank,
but their relationship between the bank
and the Federal Reserve, while not yet
clearly defined, will be very close and
important.
Some bankers in New York believe
the Federal Reserve Bank should have
permission to buy stock in the Bank for
International Settlements and serve as
it's correspondent even though this
would require special legislation by
Congress. The more important matter,
however is that which deals with its
personnel.
owen D. Young would make an ideal
man to head this bank" as one New
York banker expressed 1t to me yester-
day. But his business duties are such
that this is virtually impossible.
1t is known S. Parker Gilbert, agent
general of PREPARATIONS, wants to return
to America, and it is doubtful If he
could be interested.
Some believe Pierre Jay. who has
been associated with Mr.. Gilbert, End
who was formerly Federal Reserve agent
os the New York Federal Reserve Bank,
may be associated with the new bank.
In addition to the active officials
there are to be two boards connected
rectors and the other the advisory
council 1t is probable that at least
one American representative will be on
each.
The important Colorado Springs oil
conference of the governors. called by
President Hoover, is getting down TO
business.
1t is not exactly a harmonious gath
ering. The little Independent oil pro-
Queer seems to see in curtaillnent OF
oil production the death knell to many
of his own ambitions.
There are today 100000 oil wells In
the United States producing an av-
erage of barrels each daily. Hun
dreds of new wells are being brought
in every month-many of them Wild
catters-those brought in usually by
little independents.
E. B. Resser, president of the Amer
lean Petroleum Institute, told the 300
delegates, advisers and spectators at the
conference, that the United States was
producing ~ per cent of the total an
nual consumption of petroleum prod
ucts in the world. And the country
has only 18 per cent of the worlds
petroleum reserves-a lopsided and I'M
economical position, he says.
(Copyright, 1929, by North American News
paper Alliance.)