Evening star., 1932-01-04
BANKING MERGERS
BECOME NUMEROUS
Year Marked by Many Con-
solicitations of Capital
Throughout Nation.

NEW YORK, January 4.-The year
1881 will go down in banking history
as an eventful period of readjustment
to the worldwide economic depression.
The depreciation of commodities and
securities, along with heavy liquidation
/ of credit, tendency toward boarding
in some sections, wide fluctuations In
foreign exchange and gold Withdrawals,
wrought many changes in institutions
and in banking practices.
Formation of the National Credit
Corporation was undertaken late in the
year as a result of recommendations
made by President Hoover, to provide
| assistance from a huge central pool TO
banks whose assets were temporarily
frozen.
Many Mergers Arranged.
The year was characterized by many
failures and closingS, voluntary as well
as involuntary, and by a number Of
important mergers. There were some
large consultations and some Of the
huge expansion programs from 1880
were continued. The Mellbank Cor
poration is an example of the way
| some banks expanded. This Mellon
| owned corporation continued to add 10
! its system of banks in the West Penn
| sylvania or Pittsburgh trade area.
New York State banking institutions,
| excluding credit unions, personal loan
and loan and savings associations, as of
september 80, numbered 492 which
! contrasted with 546 as of December 81,
| 1880. OF the 1881 total 100 were banks,
147 trust companies and 146 savings
banks. compared with 2Q6, 158 and 1so,
| respectively, at the 1880 year end. The
| latter total also included 80 private
bankers who were somewhat reduced In
| number during 1881.
During the year approximately as
State institutions were closed. None of
the closed institutions in New York
State were savings banks. Twelve State
banks and trust companies merged.
Deposit liabilities and other creditors at
| the close of 1881 in State institutions
that were closed either during 1881 or
IN 1880 amounted to 1888, ,101, ,122. This
cludes some banks involuntarily closed
at the end of 1881, as well as seven
credit unions and three private bankers.
The l1quidating dividends paid out hy
| such institutions during 1891 approxi-
mated $65,763,293. Payments to other
creditors amounted to S35,324214.
Market Movements Wide.
Bank and trust share fluctuations In
! 1881 attracted widespread attention be-
! cause % their advances or declines
invariably preceded buying or selling
movements in general security marts:
| CD the public, for the first time in any
panic period, held substantial amounts
OF such stocks; 80 their market de-
probation, on percentage basis, was
second highest Of any important Sc
cur1ty division, being exceeded only hy
| investment trusts, and (4) dividend re-
! ductionS, approximating per cent, In
bank and trust shares were the smallest
IN list of 80 security classifcations.
The peak of bank and trust stock
averages was reached on February TT
| at 92.4, or nine days before other shares
attained their 1881 maximum. The hish
| point was attained after their climb
| from the valley of 677 on December II,
1880, which compared with the 1890
summit of l55 reached on April /.
From the 1881 top the market went
through series of intermediate swings
until it hit low average of 35.5 on
| December II last. In other words, bank
and trust stock averages from their
maximum to their minimum in 1880
and 1881 registered declines of 56 per
cent and 81 per cent, respectively. The
| following table shows the price range
of eight New York bank stocks: