Potent Mitchell

When Charles Edwin Mitchell, head of Manhattan's National City Bank, was a young man he copied orders for the Western Electric Co. Making several carbon copies legible through the medium of a stub pen required a firm, indeed a strong, hand. Strong-handed, Banker Mitchell is also strongwilled. Last week he halted a collapse on the Stock Market, "slapped the Federal Reserve Board squarely in the face," heard Virginia's Senator Glass demand his resignation from the directorate of the Federal Reserve Bank of New York, announced the absorption of Farmers' Loan & Trust Co. by his National City, and regained his position (briefly lost by the Guaranty Trust-Bank of Commerce merger) as head of largest U. S. bank.

Slapper Mitchell. Activities of Banker Mitchell as Wall Street rescuer and Federal Reserve Bad Boy turned upon his offer to put $25,000,000 into the call money market. Inasmuch as call money had reached 20% during the famed 8,000,000 share turnover market-break (TIME, April i), the assurance of available funds had a tremendous moral effect. For traders were not so much worried about a 20% rate as about the fact that even at 20% money was not available. Thus the Mitchell announcement stabilized the market, much to the disgust of the Federal Reserve Board, which had been rubbing its hands over the money scarcity that its influence had helped produce. That was why Senator Glass made his "face slapping" remark and tried to read Banker Mitchell out of the Federal Reserve System. What with the Glass outburst and a Federal Reserve Board meeting, the market began April in a nervous condition, and stock averages sweated off over four or five points while call money got up to 15%. The Board, however, did nothing; Secretary of the Treasury Mellon being quoted as saying that neither the rediscount rate nor the Mitchell resignation were even discussed. Merger Mitchell. ''Very interesting," was all that Banker Mitchell said when told of the Glass attack. Mr. Mitchell's mind was occupied with an important matter -- the merger of National City with Farmers' Loan and Trust. Announced early this week, the amalgamation created a banking institution with total resources of $2,100,000,000. Inasmuch as the Guaranty Trust-Bank of Commerce merger (TIME, March 4) had produced a bank with resources of $1,983,597,000, the National City-Farmers' Loan combination could match Guaranty-Commerce dollar for dollar with some $117,000,000 to spare. Even before acquiring Farmers' Loan, the National City had resources of almost $1,900,000,000; added some 220,000,000 with Farmers' Loan. Mr. Mitchell will retire as National City president, to be succeeded by Vice President Gordon S. Rentschler.* But Mr. Mitchell will be board chairman of National City Bank, of National City Co., and City Bank-Farmers' Trust Co., a new trust company formed by transferring Farmers' Trust Co. commercial business to National City and National City's trust business (as far as possible) to Farmers' Trust. President J. H. Perkins of Farmers' Trust will be president of the new City Bank-Farmers' Trust Co. In announcing the Farmers' Loan acquisition, Banker Mitchell was emphatic in stating that the question of being "biggest bank," did not enter into consideration.

*Famed as conservative aviation financier (United Aircraft & Transport).