426 CHARLES J. BULLOCK 



ment by recalling the fact that, of all forms of capital, banking 

 capital is absolutely the freest. It is unnecessary for the bank- 

 er to erect an expensive plant which will be rendered worthless 

 if his competitors are able to drive him out of the business. 

 Provided that care is excercised in making loans, it is possible 

 for any concern to enter or to retire from the field without los- 

 ing any appreciable portion of its investment. The trouble 

 and expense of incorporating a banking association need not 

 be incurred by any individual or firm that may desire to lend 

 money upon personal or collateral security. No crude ma- 

 terials have to be transported through pipe lines or upon rail- 

 roads that refuse equal opportunities to all shippers. The post 

 office does not attempt to discriminate between its patrons, 

 and express companies would hardly be so foolish as to hasten 

 the establishment of a parcels post by adopting such a short 

 sighted policy. Moreover, the average small customer, like 

 the average large depositor or borrower, prefers to have per- 

 sonal relations with the banker; and this becomes increasingly 

 difficult as the size of an institution increases. Under such 

 circumstances, the establishment of anything resembling a 

 complete monopoly is quite inconceivable. Even when a gov- 

 ernment grants special privileges to a central bank, as has 

 been the case in Europe, a vigorous competition still persists. 

 By the side of the Bank of England there has grown up a vast 

 system of private and incorporated banks, and the Bank of 

 France is confronted by such rivals as the Credit Lyonnaise. 

 But even if complete monopoly is impossible, it does not 

 follow that the prospect is free from all unpleasant features. 

 So large a part of the resources of the New York banks is now 

 controlled by the great alliances that it would be difficult to 

 finance a corporate enterprise of the largest size without the 

 consent of the Morgan or Rockefeller interests. For such a 

 purpose outside capital might possibly be enlisted, but this 

 would probably entail considerable risk and effort; so that, 

 for the present, a few magnates have the situation pretty well 

 in hand. Then, again, it is unfortimate to have the largest 

 banks and their affiliated institutions so closely identified with 

 particular corporate interests. This gives to the great captains 

 of industry almost unlimited control over other people's capi- 



