WHO OWNS THE BANKS?

Northern Advocate, 23 June 1925, Page 7

WHO OWNS THE BANKS?

AN INTERESTING RETURN,

It is usual for Labour orators to refer to banking institutions as the head and front of the offending capitalist body, and to represent the bank proprietors as a few very wealthy peo pie. On this point an interesting letter was written to the "Times" recently by Mr W. Buncimaai, M.P. The facts quoted bear also upon the increase in number of small capitalists, concerning which there has been rerent discussion. "The Socialist campaign for the nationalisation af the banks (wrote Mr Runciman) is based on a dangerous lack of knowledge. Their proposals so far might more accurately be descirbed as turning the banks into political intruments. I do not propose to discuss Mr Mosley's suggestion, but it is clear that his colleagues, and probably he also, little realise how banks are owned. I have recently had at my disposal the figures of the five big banks, which are set out in the following table: — "Barciay's—Paid-up capital, . £15,592,372; number af shareholders, 51,011; amount of average holding, nominal £306, in market value £790. "Lloyd's — Capital £14,372,956; shareholders, 55,668; holdings, £258; £774. "Midland — Capital, £11,976,890; shareholders, 57,068; holdings, £209; £750. "National Provincial—Capital, £9,479,416; shareholders, 41,603; holdings, £225; £<554. " Westminster—Capital, £9,051,718; shareholders, 69,852; holdings, £130; market value, in the £5 paid, £592; £1 fully oaid, £192. "Tho results are really remarkable. The total paid-up capital of the Big Five is £60,473,352, and the amount of the average nominal share holding of

these scores of thousands of shareholders is only £219 ss. Even if the | V'hole were taken at its market value it would only be about three times the nominal and well under £800 for the overage individual proprietor. "Figures such as these and the 15 million of small investors in Government securities must have an effect on the minds of investigators in every political party; and it is already clear, from the caution advised by Dr Dalton in the recent Independent Labour Party conference, and adopted in some of his utterances by Mr Ramsay Mac Donald on the handling of capital problems, that these figures must have their effect upon the policy of even a Socialist Government of the future. The old conception of the capitalists being few in number and guarding immense treasures must be modified, and the picture of the banker handling his own millions in Lombard Street is out of .date. The directors of the great banks «.re trustees for the many scores of thousands of individuals who now own the tanks, and as trustees they hold the .confidence not only of their proprietors but also of the numberless depositors who entrust their savings and surplus cash to the banks, and of the borrowers who feel that their interests are safe in the hands of the bank directors. If our present banking system is to be defended it will be a defence rot of wealthy bankers, but of a system inextricably interwoven into the commercial and industrial life by which the British people are sustained."