Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-03-27

corporation was unknown in the bust
ness and industrial worlds, and was
looked on as fanciful proposition. The
bihion-dollar company is no longer a
novelty. There are several of them in
this country-one even having grown to
more than two and half billionS-and
the number is increasing American
wealth is growing by leaps and bounds.
The public has abandoned the idea.
popular few years ago, that mere size
is to be avoided in its business insti-
| tutioris."
Developments in the ALLEGATION of
capital in the United States impress the
st. Paul Dispatch, which quotes Stats
tical reports showing that "of the 20
largest banks in the United States 16
are in New York City," That paper
continues: THE case of one New York
bank is pointed to as a sensation.
Starting as a new institution in jan
uary, 1929. it has already accumulated
deposits of more than 500, 1000 900. The
simultaneous marked increase of mer-
gers and the marked Capitalization of
bank deposits in New York City strongly
indicate the kinship of cause and effect.
Once Greeley urged young men West
ward, where opportunities for creating
wealth abounded. Now the merger app
pears as the ritual of a financial infiu-
ence that sends dollars Eastward to q
Manhattan Mecca
The Richmond News-Leader thinks
that "the history of the three New York
financial institutions that consolidated
to form the worlds largest bank would
make an admirable commentary on the
increase Of American wealth during the
last 40 years" and the Richmond paper
quotes figures as to their growth in re-
sources and the similar growth of other
institutions. The Roanoke Times states
that the destiny of the worlds largest
bank will be in the hands of three men,
one veteran banker, one Southerner
who went to New York only four years
ago, and lawyer who became a bank
executive only last December" The
Memphis Commercial Appeal remarks
that these three men attained their
positions without the aid of influence,
wealth or heredity."
X X X
Discussion as to whether such gigan-
tic combinations are of benefit to bust
ness and the country generally" says
the Utica Observer Dispatch. "has never
been settled. But when it is considered
that this new combination, immense as
1t is, by no means has a monopoly of
the banking business. and can never
acquire II, no matter how earnestly 1t
may strive, there doesn't appear to be
much cause for alarm. The three
merged banks might as we'll be under
one head and name as to be separate
units with working understanding be-
tween them"
"A race for leadership by financial
giants is feared by the Scranton Times,
which continues: THE public is no
longer alarmed at mergers with capital
running into the hundreds of millions,
or even billions of dollars. 1t is now ac-
cepted that consultations and mergers
are a part of the recognized business
scheme of the day. However, if there
is to be a continuance of these con-
solicitations the public must be made a
beneficiary as well as stockholders.
Most far-sighted business men realize
this and pass on to the public GER
tain part of the benefits accruing from
merging"
An attitude of doubt on the part of
President Hoover and Secretary Mellon
less than year ago as to big banking
consultations is subject of comment
by the Syracuse Herald, with the con-
clusion that many thoughtful citizens
will be at loss to understand what
special need is served and what public
interest is promoted by these tremen-
douS banking combines"