Automatic Age

T h e A u t o m a t ic A ge
W a tc h
B a n k in g
15
D ev elo p m en ts
When the experts disagree about developments in banking circles,
it may seem somewhat daring for a layman to express a positive
opinio.n on the subject. We are primarily interested in the effects
that banking trends will have on the chances of worthy small busi­
nesses for obtaining money. All the firms in the automatic trade are
classed as small and medium sized business enterprises, and naturally
the trade is vitally concerned in what takes place in financial circles.
The frequent appearance of new inventions in the trade also means
that there are going to be many demands for reasonable financing.
Authorities say that it is now difficult to get consideration in estab­
lished financial circles for any project that does not involve millions.
A few attempts have been made in the automatic field to get up into
the high circles where everybody talks in terms of millions, but the
experiences so far have not proved so favorable. Practically all the
sound developments in automatics are being made by small and medi­
um sized firms, and by inventors who have to spend more time in
looking for funds to market their devices than they did in developing
them.
Close observers have recognized that for years available funds were
drifting toward the stock market, and that it was getting increasingly
difficult for smaller independent firms to get needed funds and credit.
The trend in banking circles now is toward branch banking and in­
vestment trusts. The question is whether these new developments
will create any more favorable conditions for small business, or will
they merely continue the practices of the past few years. A t first
thought one would naturally conclude that mergers in banks will not
mean anything better for the small firm, and many authorities are
already coming out in the open and clearly expressing their views on.
the dangers.
The present business stress has served to make people sit up and
think of the place and importance of small business enterprise in the
American system. The truth has about simmered down to the con­
clusion that mergers and big corporations have many advantages in
certain industries, but that small business enterprise still remains the
necessary bedrock for any permanent prosperity. The future of the
automatic trade is wrapped up in what happens for the good or ill
of small business, so that is why we say “ Watch banking develop­
ments.”
There is probably nothing that can be done about it, except to create
such strong sentiment among business men in general, so that bank­
ing circles will be led to sit up and take notice.
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