Evening star., 1931-05-04
BAKER DEATH MAY
MARK NEW EPOCH
New York Banker Was Last
But One of Business
Giants of Age.
BY JOHN r. SINCLAIR.

head Of the First National Bank OF New
York for 54 years, will leave big gap
in American business and banking lie
which will take years to fill.
Until Saturday night Mr.. Baker was
the only survivor but one tJohn u.
Rockefeller, sr) Of the last generatlon
of business giants, which mcluoeo y.
Morgan the elder, Stillman, Hill, Harrl-
man, Stanford and Huntington.
Mr.. Baker never gave up business un-
I'll his death He attended several di-
rectors' meetings last week, one WIN
the Mutual Life Insurance Co. ana an
other on Thursday last with the Con-
solidated Gas Co.
This great banker started from
scratch. He put UP $4,000 for STOCK IN
the First National Bank of New York
when it opened in July, 1853, becoming
in turn assistant teller, cashier and di-
rector. When he died he was still di-
rector and chairman Of the board ana
owned $4,000 shares of stock, worth
over S72,OOO 900. He was also the
largest individual stockholder in United
states Steel, as we'll as in the American
Telephone & Telegraph Co, IN both OF
which he was powerful director;
At one time Mr.. Baker was director
in AZ CORPORATIONS, banks, railroads, pup
lie utility, coal companies ana otner
corporations.
And he found time to give away
millions much of it anonymously.
jackson Reynolds, his associate In
the First National Bank, referred TO MS
chief as "a great banker and great
man. Like most great men, ne was
simple and modest"
Mr.. Baker spoke once in public, gave
one interview, and contended that
-
duce their talk at least two-thiros.
What effect will his passing have on
American business? That's a haro
question to answer categorically. For
the immediate, perhaps not great
deal. But for the long time pull, II
probably spells the beginning OF new
enoch. a new era. The old days and
the old leaders are gone forever.
How successful viii the Federal Re-
serve Bank be in its attempt 10 stop
the inflow Of foreign gold by lowering
the bill Fate, and so protect the level
of prices in this country?
The lower bill rate has favored the
London market, and given an upward
push to the pound sterling and also 10
the franc. This Is an attempt to force
foreign holders Of gold to send the
metal to other markets than that OF the
United States in seeking higher proht.
There is some doubt as to whether
this will really happen. 1t Is pointed
out that the franc has slid down 70
the export level. Furthermore, short
time money is already so cheap in this
country that cheapening it further may
have little result. Short-time money Is
O drug on the market.
The whole framework Of international
and domestic trade has become so dis
torted that payment in kind-that Is, In
goods-islo W and lopsided. Since the
only other way Of meeting onllgatlon
is with gold, this metal has uSurped the
natural place of goods. In addition II
has been forced into America and
France, because each Of those nations
is lucky enough to have favorable bal
ance Of trade.
Under normal conditions, this unfa-
Vorable balance would be met by equa1z-
ing the exchange through shipment OF
commodities. But now those goods. OF
which most nations have pig sur
plus. cannot be sent because there are
no buyers. They must, then, send more
gold and, in the end, borrow abroad.
Tariffs, war debts, lack OF economic
planning have raised havoc with the
world. How much longer will conditions
be allowed to drift? Perhaps the
speakers of the International Chamber
of Commerce, gathering in Washing
ton this week, will furnish solution to
some Of the most important OF these
problems.
France is spending $130,000. 900 to
hold her Eastern European allies, Ru-
mania, Jugoslavia and Czechoslavia,
outside the walls of the new Austro-
German economic union.
She has already loaned between
%
slovakia, $4,000, 900 to Rumania and
now still hopes to make the $48,000,0 900
loan to Jugoslavia. Since long-term
credits are a crying need 20 all conti-
mental countries outside OF France and
since these transactions are OF that
character, it Is Just possible that France
may yet be able to thwart the impend-
ing collapse of the little entente.
Money talks loud these days!
While these countries have been eye
ing the economic advantages of joining
the Austro- German Zollverein, the ben
efits of long, financial aid are
likely to prove more attractive.
However, the extreme conservatism
of French banking makes such negotia-
tions as painful and exasperating as
tooth extraction. Discussions between
Paris and Belgrade have been long
drawn out. Unless France acts quickly
a. .Jugoslavia will probably go over to Ber-
lin, thus breaking the strong wall oi
French economic power in Eastern Eu-
rope Montagu Norman's plan for ar
international mortgage bank also woulc
imperil French supremacy. If it should
succeed
There has never been an industry
that required the constant financing or
a scale such as the electric light aHc
power business. To finance econom
ically the normal growth Of electric
light and power properties Is one OF thu
most important problems facing u:iht!
operators"
Using this statement for It's main po
Sition, the John Nicherson Co. OF NeN
York works around to an argumen
against the campaign for public owner
ship of utilities
It is asserted that carrying that iSsu
into the political arena impairs public
confidence in the utilities. This VII
make very dificult the great volume
financing necessary in the twenty-yea
program of development seen aheac
Since the country's economic life Is
closely linked with the light and powe
framework, great damage would resul
to the Nation at large, according to thi
company. Already $1,000 100000
capital are invested in the industry.
Nevertheless, a clean record and
clear conscience are the best defens'
BY maintaining high standards OF serV
ice and passing on to the public rec
BENEFITS in the way of cheaper rate
whenever pcssible the utilities need nc