Busiest Bankers

"The money changers have not been driven from the temple," declared Radio-priest Charles Edward Coughlin last week in his letter to Franklin D. Roosevelt apologizing for having called the President of the U. S. a liar. If Father Coughlin were statistically-minded, he could have buttressed his assertion with a list of the busiest U. S. banking houses in the first six months of this year, as compiled last week by the Wall Street Journal. The figures were less impressive than they used to be because security registration statements now reveal the actual amount underwritten by each house. Formerly, and even now with exempt offerings like municipals and railroads, the total amount of the issue was credited to each syndicate member.

Yet the names which led the lists in 1929, with few exceptions, still lead the lists in 1936. Some of the names have been changed but the working bankers of the New Deal are largely the working bankers of the New Era. At the end of June the No. 1 U. S. house of issue was Morgan Stanley & Co., securities offspring of J. P. Morgan & Co. Occupying its traditional No. 2 position was Kuhn, Loeb & Co.

These two top positions were awarded on the basis of amount of bonds underwritten as the head of offering syndicates, not on total underwriting, which includes participations in other bankers' deals. The fact that a firm is syndicate head usually means that it worked up the issue itself as chief bankers to the borrower, got other syndicate members to participate. In creating prestige, originations are more important than participations. But in total underwriting (originations plus participations) Kuhn, Loeb ranked fourth ($344,509,000), Morgan Stanley & Co., fifth ($277,703,000).

First three in total financing were the three houses which drew a large part of their present strength from the three leading bank securities affiliates of pre-Depression days: First Boston Corp. ($389,000,000), which absorbed the old Chase Harris Forbes organization; Brown Harriman & Co. Inc. ($389,000,000), which includes many an official of old National City Co. as well as onetime Brown Brothers. Harriman & Co. partners; and Edward B. Smith & Co. ($369,000,000), which took in most of the staff of old Guaranty Co.

Sixth in total business was Blyth & Co., Charles Edwin Mitchell's new stand. "Charlie" Mitchell's financing for the first half footed up to $263,000,000. Other ranking houses: Lazard Freres ($168,000,000); Bancamerica-Blair ($156,000,000); Halsey, Stuart ($143,000,000); Lehman Bros. ($137,000,000); A. C. Allyn ($128,000,000); Mellon Securities ($113,000,000); Field Glore & Co. ($113,000,000). Chase National Bank was well up in the list ($136,000,000) with its municipal bond underwriting, which is still permissible for commercial banks.

Three years ago the ranking of Wall Street houses was a matter of indifference to everyone including the bankers. Total corporate financing for the first six months of 1933 was only $219,000,000, less than the 1936 originations of Morgan Stanley alone. This year the figure on corporate financing was $2,583,000,000; on all financing, including foreign and municipal issues but excluding Treasury operations, $3,635,000,000--highest since 1930. Of that total, however, only $866,000,000 represented new money. The rest was refunding.

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