Back-to-Back

At No. 140 Broadway, Manhattan, stands the home bank of Guaranty Trust Co., U. S. billion-dollar bank. At No. 31 Nassau St., Manhattan, stands the home bank of National Bank of Commerce, U. S. almost-billion-dollar bank. Should a ghost with the gift of flitting through walls flit through the rear wall of Guaranty Trust and continue flitting, it would flit through the rear wall of National Bank of Commerce. For these two great U. S. banks stand back to back. Between them they own almost the entire block bounded by Broadway and Nassau, Cedar, Liberty Streets.*

Last week came announcement of the long-rumored merger of Guaranty Trust and National Bank of Commerce (TIME, Feb. 11). Probably a skyscraper will soon be erected on the joint site. With Guaranty Trust already fourth largest and National Bank of Commerce ninth largest among U. S. banks, the merger-bank will pass National City and Chase National, will stand as largest U. S. bank, as first U. S. bank with assets approximating two billions. From the standpoint of capital and surplus the merger-bank will be also world's largest. From the standpoint of deposits and total assets, London's Midland Bank Limited is larger --almost a two-and-a-half-billion dollar bank. Other British banks with larger deposits are Lloyd's and Barclay's and approximately equal in deposits are Westminster and National Provincial.

Vital statistics of Guaranty Trust, of National Bank of Commerce, are:

Guaranty Trust Nat'l Bank of Commerce

Capital $40,000,000 $25,000,000

Surplus $50,000,000 $40,000,000

Deposits $836,505,877 $672,943,890

Total Assets $1,049,597,112 $934,000,000

Combined

Capital $65,000,000

Surplus $90,000,000

Deposits $1,509,449,767

Total Assets $1,983,597,000

A large, round sum is two billions, difficult to comprehend. Not until the U. S. entered the World War did Congress appropriate as much as two billions per annum to run the Government. As recently as 1900 there were only two billions of U. S. currency in circulation.

Morgan Banks. Both Guaranty Trust and National Bank of Commerce have connections with the House of Morgan, with the Morgan influence especially strong in Guaranty Trust. It was the late great Morgan Partner Henry P. Davison, who, in 1909, began Guaranty's period of swift expansion. Thomas W. Lamont and George Whitney are present Guaranty Morganites. President of Guaranty Trust is blond William Chapman Potter, onetime mining engineer; Chairman of its Board is swarthy Charles Hamilton Sabin, onetime Massachusetts farm-boy. They are brothers-in-law, their wives being daughters of the late Paul Morton, Roosevelt's Secretary of the Navy.

Founded in 1839. National Bank of Commerce has a comparatively merger-fre history of steady growth. Its present prosperity has resulted chiefly from efforts of Board Chairman James S. Alexander, whose son and namesake is second vice-president. President is Stevenson Ward. Last week there was no inkling as to the merger-bank's officers.

Stockholder Taylor. It is generally believed that Myron Charles Taylor, large stockholder in both Guaranty Trust and National Bank of Commerce, did most to effect the merger. Distinguishing Taylor characteristics are a thin-lipped mouth, a square-set jaw, a darting eye. Distinguishing Taylor accomplishments are golf scores (good), horsemanship (good), marksmanship (very good). Mr. Taylor became wealthy in Lowell, Passaic, New Bedford textiles. He then turned from textiles to banking. His close friend is the elder George F. Baker. His fame was not wide until he became, on Dec. 28, 1927, Chairman of the Finance Committee of U. S. Steel, and with J. Pierpont Morgan and James A. Farrell formed the present Steel Triumvirate. With Mr. Morgan's duties partly honorary and Mr. Farrell absorbed in production, Mr. Taylor may well claim to speak for U. S. Steel. But, though he occupies the position of the late, great Elbert Gary, he has by no means continued the Gary tradition of frequent fiscal comment and profound public prophecy.

*Sole property not owned is New York Clearing House, Nos. 77-83 Cedar St.