New Dawes Bank?

Ever since Charles Gates Dawes's Central Republic Bank & Trust Co. obtained a $90,000,000 loan from the R. F. C. (TIME, July 4), Chicago's LaSalle Street has thought there was little doubt that the bank would gradually liquidate. Last week Chicago's Herald & Examiner said it had learned that Central Republic would indeed liquidate, paying depositors in full, but that Chairman Dawes would start afresh with a new bank capitalized at $5,000,000. The new bank (of which Banker Dawes would again be chairman), would be called Dawes Bank & Trust Co.

Questioned on the report, Banker Dawes labeled the story as "premature," but admitted there would be a "readjustment" of Central Republic's affairs. As yet, he said, plans had not been ratified by the 5,000 stockholders of which he is one of the largest. Though he claimed "business was going on as usual," Central Republic was known to be making few if any new loans.

After the merger with National Bank of the Republic last year, Central Republic had deposits of $264,000,000. By last June these had seeped away to $112,000,000. Whether it continues in business or liquidates, another big problem facing Central Republic is that of leases. As the bank absorbed other institutions, rentals for quarters abandoned piled up. The mergers also forced Central Republic itself to seek larger space which today is not required. It is estimated that the annual rentals now total $1,250,000. Observers pointed out that perhaps liquidation is the only way to escape this staggering burden.

The Herald & Examiner pictured Banker Dawes as having to begin his career anew, returning to the day in 1902 when as an able young man of 37 he organized Central Trust Co. of Illinois. Under his guidance it grew into the Loop's third largest bank. The chief complaint of Banker Dawes, 67 last fortnight, is that he can no longer obtain underslung hubble-bubble pipes. Though the institution he built may be razed, Banker Dawes could probably take with him at least $50,000,000 of old Central Republic deposits if he decided to found a new bank.

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