La Grande evening observer., October 16, 1924, Image 7

Thursday, October 16, 1924.
THE LA GRANDE EVENING OBSERVER
PAGE SEVEN
LOW INTEREST
The Last , Picture of Dead Aviator and Plane
RATES TALKED
The low Interest rutea now pre
vailing uro only one reflection" of
tlm offset of our huge gold stocks
on tho economic life of this cuun
try. slates the current issue or "The
Ouuranty Survey," published ly
the Guaranty Trust Company or
New York. ,
"Moreover." "Tho Survey" con
tinues, "tho low rules not only em
phasize tlm, necessity for releasing
part, of our Rolii stocka. but ulsg
potnt to the faqt that tin iiiukI pro
fitable und In an all-round stnRe
tho most enduring relief Is to In
' found In tho purchase of foreign
dollar bunds.
"Foreign bonds,a although they
y possess varying degrees of Invesl
ment merit, are as n rlatw selling
Ht prices substantially below their
' Intrinsic values. Obligations of
sound governments are generally
recognized as tltu stundard of in
vestment worth, yet we have the
unomaly of good foreign govrrn
ment bonds selling to yield n
much as 4 per cent more than Uni
ted Slates government obligations.
This discrepancy is due not so
much to a positive distrust of the
credit of foreign governments us to
' a lack of under standing of what
should form Die basis of sound
governmental credit. Tho tendency
to Judge risk largely in terms of
distance is certainly not based on
sound reusoning anil is gradually
disappearing.
Recent lllso in 'ieign r.uiuK
"The recent pronounced rise in
(ho . foreign bond market, which
curried some issues upward to the
extent of 10 points in a few weeks.
Is Indicative of a changing atti
tude. Whllo the current ease in
money rales, which drove the bond
market as a whole to higher levels.
" Is In part responsible for tho rise
In foreign bonds, it Is noteworthy
that after tho Impetus given by
easy money conditions had largely
spent Itself the appreciation In the
foreign bond list continued, und at
tin accelerated rate.
"To tho virtual acceptance of the
3)awes report and the general be
lief that it would be accepted. Is
given u largo measure of credit for
this advance. Whllo there Is rea
son to believe Unit the largo an
rapid rise Incident to this event I
praetlcully at an end, thero Is a
growing appreciation of tho fact
that conditions ubroad arc not so
bad as they seemed, and are, in
reality, on the mend. Kurther gen
eral Improvement in European af
fairs, or any greater f cling or con
fidence on that score In this coun
try, should aid foreign bonds as a
cluss. although those most arfected
by politics in Western and Cenlral
Huropc are likely to fluctuate
more widely Ihun others. In any
event, the American investor is
M gaining greater famlliurlly - Willi
' and confidence in foreign invest
ments, and Mils is a slablllzlng in
fluence which, from the long-term
point of view, argues better treat
ment for this type or Issue.
"When thu pound sterling is
again easily and naturally main
tained at Its dollar parity, the Urlt
li.ll Investor will not pay lui'k. as
he now must, tor Dulch Must In
dies C's, when he con purchase)
them here for 95 14. This nnoimily
persists now because the pound is.j
quoted at about J4.r,u and the in-,
vestment ailvan'age is balanced by
depreciation In exchange and the I
further putelltial loss due to a fu-1
lure rise in sterling. If lllu Ainer- .
lean Investor hlmseir does nol cor-',
rect this price discrepancy, lie may
rest assured part or foreign Invest-j
inent buying ordinarily comes. ,
i;rrvis of j-;xciiimc itaus.
"K Is nol necessary to wait for
the return or sterling exchange lo
par to have this truthfully demun
sl rated. Wu have already had ex
amples, on a small scale, of the
Siilife force working through the
medium of .Sweden, .Switzerland
and ilolland. Tho relatively favor
able ratings granted the dollar
bonds of these countries are not
alonu due to tin! high credit rat
ing given, their govern ills by the
American markets. In fael. their
favorabe market position hits been i
allained In spitu of only ralr rat-J
lugs which wo originally were In-,
dined to accord them. These three
nations are the only ones In Ku-1
l rope w hich have been uble to raise I
' the exchange values ot their cur-,
reticles lo their approximate dollar,
parities and to huld them there.
"'And when thesu currencies,
rose to pur. what huppeiied '.' The!
Swiss people, 'or example, forlll-
with repurchased largo blocks or
Hie dollar obligations of their gov-1
rnment on u yield basis which
would be preposterously high at :
home. T hi! Swiss S's, as a conse- ,
MOence, which were ottered lo thel
Americans at J 00. rose to a high
4 of 122 and are now quoted at 1 1
While part of this rise is attributed j
lo better uppralsal ot Swiss credit j
by our own market, much of it,!
and perhups Us beginning, Is trace-,
able lo an Influx or capital from
shrewd Swiss investors. Ail over
llow of this demand ror dollar j
bonds rrom Switzerland. Sweden
and Holland, went, after lli'lr own
bonds were advance d, to oilier ror
elgn government bonds, one can
but Imagine how strong this buy
ing Ironi abroad will be when the.
pound sterling reaches par. for
Ijliglanil Is a great reservoir or in
vestment capital.
1 "11111 thero are oilier than these
technical or market Influences
which are operating to popularize'
or to establish Ihc posiliun of for
eign bonds In the ;utivd Hi ales.,
Koreigu Investment must necessary
lly follow tho change rrom a debt-,
or to a credllor position, such as
occurred In the case of this coun-i
try during the war period: and the:
future Industrial development or!
, tho United Slates Is likely lo make
4 the change permanent. As a fun
V sequence, America eventually will
actively seek mediums tor Invest
ment abroad, rather than merely
accept them, as now. Economic
luHi demand this, whether or uut
Wt s ' l4!l.
This in the last picture of Captain Burt B. Bkeel of the irmy ntr service who crashed down to hi death In
tho Pulitzer trophy event at the International air races In Dayton, O. It was taken Just hefnre hi started ur
An antiquated plane, fit for the ecrap heap two years ago. according to officials ot the National Aeronautic
Association, Is blamed tor his death. v
Kust Indies, and other countries,
I-innmial Isolation No
Iiongcr lifhW-. i
Thu uut ions ur the world are
now gruduatly but very definitely
retraining a condition of prosper
ity. Thero Ih positive, evidence of
this In most countries today. The
records of American foreign trade
indicate it, us well nn the stnhtll
nutioa of currencies which Is tak
ing pluco In every direction.
'Certainly llu time would seem
to have arrived for the Ameftcan
investor to play an Important part
in tho world's financial and eeo
iioinlc development, and surely lie
will nut-permit It to pass with In
difference to Its great possibilities.
That his ed ucat Ion Is proceeding,
is proved by the record of very
considerable foreign investment in
recent yeaYs. and this investment
Interest will constantly tend to
broaden In the future. The period
of financial Isolation of the United
Htates. It Is certain, has now been
definitely closed.' . '
ALTO II CRTS I'KDESTKIAN
KCGKNfc, Ore. W. J. 8perb, 36.
of Kerkeley, t'al,. Is In a local hos
pittil suffering from Injuries sua
tHtned whon an automobile struck
him while he was walking ulong
the Pacific highway six miles norll'
of Kugcne. He was thrown acro&t
the highway, and the uutoniobl.e
sped on without Btopplng, accord
ing to witnesses.
Sperb wus unconscious fur ar
hour or more, but physicians suit'
his Injuries were not serious. He
was badly cut on the head.
HINTS TO MOTORIST
I believe that the traffic rule
most drivers are ignorant of in
In parking on Uie wrong side ot
tlie street In front of school
housed. The "wrong" side of the
street, In this case, is the side on
which the school house Is locat
ed. The reason for tills ordi
nance la that the children when
leaving the school grounds aro
prone to crons she Htrcet at whttt
cyvi! point is most convenient.
-AIiONZO (J. DUNN, Liu
Ia (irmide traffln officer.
BANK DEPOSITS 1NCRKASK
THE DALLK8. Ore. Hank de
posits in The Dalles huvu gulned
IftOO.OOO since Juno 30, it wus re
vealed following the response ot
the three local banking Institutions
to the call of the controller ot cur- .
rency for a statement as ot Octo- .
ber 10. This la an Increase of 16.1
per cent since the last call,
The total deposits of the thres .
local banks for October 10 were
$3,584,607.28, against a total ot
$3,039,448.78 for June 20.
Ex-Bank Manager Held.
PAISLEY, Ore. Bert Warden, a
resident of Stiver Lake and ax
manuger of the bank at Blebler.
f'al.. hos been arrested on a com
plaint by officials of the bank,
charging him with misappropria
tion of fund's of the Institution.
Tho complaint charged the taking
of funds of the bank on three dlt- :
ferent occasions.
the present temper of the. Ameri
can investment mind desires It.
While Die piiKHiige of time is per
haps tlu; greatest rtMiutaltc. fur the
proper appruisitl of the merits of
thu various foreign bonds now
avutluble fur I ho American inves
tor, there aro numerous issues
which uro unduly depressed In
price wln n considered In tlui light
uf Intrinsic soundness.
l-'oivhni Sifiirlth-s l-'loaled ll'!'.
"There are row listed and dealt
In on the New York Klock lOx-
cliauge foreign securities which
were originally offered, from Hi 14
to date, to tho aggregate, pur value
of $:!.;isr,,lMU0M, una for which
tht) Americun people paid
4. oi)0 tu tho original commit
ment, or u gain of 4 per cent.
"It Is well known that tho Eu
ropean has long been fur moru In
ternationally - minded than the
American witli . respect to foreign
ift'ciirlties. In Gri-ut Hrituin, for
example, tho financial journals
currently print the . quotations of
government bonds rtnd other secur
ities covering pructicutly nil gov
ernments us well us industries und
public utilities of every variety
in all parts of the world. - These
lists which are. widely distributed,
include therefore securities of rail
ways and other public utilities
everywhere and such other enter
prises us tea plantations in .lava
tin mines und rubber plantations
in the Slrults Settlements, guld
und diamond mines In South Af
rica, Iron mines In Spain, cotton
plantations In Kgypl, und coffee
plantations In ltru7.il. More than
1 50 different Argentine securities
alono uro dealt In on tho London
Stock Exchange: a number great
er-thiin the total of tho hondH of
all I'oreiKii countries listed on the
New York Exchange. Jn fact, the
general invest ment Interest is of
(he broadest possible character not
only In Great lUitaln, hut in ltel-
gium, 1'Yitnce, Germany. Italy and
other continental minrtrtcn. und In
all of them tho holdings ot foreign
securities uro of lurge volumo und
of extraordinary variety. ,
Parallel Growth KMMVtnl
In t'nltcd States.
"Tho Interest of the ItrltiKh.
Vench, German .and other fur
Ign Investments, It may he said.
was a natural evolution, (he re
sult of the trading, shipping and
bunking developments which bad
been proceeding for a long period
in the old world. Hiinilur devel
opments now seem impending in
the United Slates, and u pimillel i
growth of interest In foreign In
vent meiits may be expected lo fol
low here in due course of Umu and
for much tho sumc, reasons
"Prior to the war, it is est limited
In the exploitation of natural :rc
sources of every vuriety.
'That Ihrt lliitlsh put more, fultji
in foreign securities than do 1 he
iVmerican Aeopie. and give tu them
ratings more closely npproachtng
those given to home securities, is
evidenced by ' a comparison of
yields on foreign and domestic
bonds on the New ork mid Eon
don Stock Exchanges. With- the
exception of a few of tho very West,
railroads, the difference In the
yield between domestic corporation
bonds and foreign 'bonds i the
Eomlon market is less than in the
New York market,
Thu fur, there has linen ii"iu'fsl
investment of American capital I
ubroad In the securities of pulillc I
utilities. Industrial enterprises or 1
, . . .. . nlnll.nc Unr.li lllVi.ulllW.nl
urcai itniain nau sent ner capital - i b
nus oeen iiutuo in niunny i-u u lvsni
abroad to a totul umoynt of $-0,-
imio.ihiu.ooo, and was lulctinir to It
at the ruto of J1.oimi.000.ooo year
ly. The war reduced this total
somewhat . hut Hrituin Is still ex
panding her foreign Investments to
tho extent of hundreds of millions
of dollars each year. The trading,
banking und shipping Interests or
Great ltrllaln are world-wide hi ex
tent and place her In close touch
with Investment opportunities In
foreign fields. An example of the
way in which she has seized these
opportunities Is found In the case
of the railways uf Argent Inu. of
which 15.000 tulles out of a total of
about 22.000 are controlled by
Mrttish capilul und to ' the profit
of the. Hritlsh Investor. 1ondon Ik
uIho Ihe greatest international
commodity market and, moreover,
Krltlsh industries absorb a very
largo volume of raw materials of
every kind: mtncrul, textile f litres
such as cotlon, . wool,' flux und
hemp rubber, vegetable otls und
similur necessities of maiiufucture.
These direct trading und manufac
turing act Miles have led to invest
hient on so extensive a scale that
there Is now no corner of the globe
where tlrltlxh capital Is not utilized
ments. In recent yura lurgi: suiiisn
have been placed in loans nego-' p
tinted In the financial market of I
Mm ITnllixl MtfltoM ln lll1l.Mllltl. HWIV
den. Austria. Jiu. nn. Argentina,
Chile. Tern, Canada, tho Dutch;
It Will Pay You-
lo consult a Decorator, and your architect will
loll you so. Whether to finish a new building
or rcfinish the exterior or the interior of any
buildings.
ADVICE AND CONSULTATION FREE
Yours for better jobs,
.1. LANDRY, DHCOKAT0K '
Painting - Tinting - Paper-hanging Phone 481-U
ARE YOU GOING TO
COLLEGE?
A Few Specials for tho
Trip
Suitcases at, Special
Prices, Each 20 Off.
Bags at Special
Prices, each 20 Off.
Trunk Rope, 25 - foot
Bundles, 19c.
Bundle Strap, 15c to
50c
Andrews
Variety Store
Service and Economy
1. W:
i
i
For The Dining Room
We are now showing several beautiful groups of Dining Room Furni
ture. They are the very latest wo rd in the English and Italian styles.
Sec them in our windows and on o ur flooi-s.
W. H. Bohnenkamp Co.
FOUR FLOORS OF FINE FURNITURE
is
Why a Service Charge of 50c
a Month Is Made on Small
Checking Accounts
THE Union County Bankers' Association gives the following information for tho bene
fit of the general public and tho members of the Pamona Grange of Union County
relative to Iho practice of charging a service fee of' 50c a month on all checking ac
counts averaging less than $50.00.
The information is presented in this way to clear up tho misunderstanding regard
ing the charge that resulted in a resolution by the Grango published in these columns
in 'a recent issue. ' The text of the resolution, and the letter of explanation to Mr. Geke
ler, Secretary of the Grange, aro 'published herewith : ' ,
UKSOI.VTION. 1 hetlrve,' entirely satisfactory to Die Individual has to go to tho
V UK UK AH Tho Hankers of any fair,-minded person. post offico and wait to" get his
Cnion County aro charging a fen Of rourso you understand tho money-order. Just figure, what
of fifty cents per month on all placo a hank fills In Its commit- It would cost any Individual to
deposits under fifty dollars and, nlly. It takes It own capital draw; tho number und amount
WH 101113 AS, Wo do not conslj- tho money of its stockholders of checks used each month at
er this fair to depositors In gen- plus tho money left by depositors, tho rates charged by tho posf of
eral whoso uccounts fluctuato nnd loans It out to farmers und' flee, deduct tho possible Interest
during 'tho year from largo to merchants who need more ready earnings on tho balances tnatn
, small amounts ajid to those whodo cash than they have to carry lained at tho bank, comparo tho .
deposits uro small, fifty cents per them until their crops or their service, rendered by the bunk, nnd .
month would soon cut up . the stock, of goods nro sold. '- The then ask yourself ralrly, In view
deposit. farmer or tho merchant borrows of theso many facts', whether a
THKKKKOItK BK IT UK- money so that Im can build up hank Is to bo "condemned" In
HOI.VHO that we, tho I'nlou his business - and make more requiring a customer who main
County Pomona Grange In ses- money. On tho ' other hand the tains a small checking account
slou Keptember 27th, -1924 at Tel- fallow with mpney wouldn't know for convenience, to pay a portion
ocaset, Union County, Oregon, J ist how and when to loan It of tho cost of handling such an
condemn the practice of charg- himself and could not make tlm account.
Ing a. feo on any amount of de- necessary Investigations, The What Is bank service? Tho
posit for the reason that tho place and usefulness of a hank f irntshlng of check books nnd
bankers ar soliciting tho bust- has been pretty generally deiu- checking privileges, making toi
lless of , nil depositors. onslrated In this community. lection or checks, notes and
KB JT KlIUTHKIl I1180IjVKPw . , Jn order to exist and perform drafts, supplying blank, , notrs and" ,
I luil this resolution ha jrlv'en (or Ha functions hank must earn .mortgages, letters of urcoMt, cftsh;";';
publication to the prers of Cnion money. To do' this It is obliged ler's checks,, HruftK, credit Infor- ,
County and tho Oregon Orange to make some charge fur the use million, handling mnny legal pap-
U HI. tin.
. J. A. NICK.
Master.
ATTEST: '
JAMES OKKKLKfl,
(kcretary.(
Mr. Joints Oekeler.-Kccretaryi
I'olnona GrHngo otYnlon ro'.nty. "oryluy bulm-.
1. Clrnnd.-. Or.-on. II. V. I.. No 1 '' ,xi,;- l'
of money and for at least cer- era, obtaining nnd supplying cur
tain of Its services. It costs money rency, training and providing
a great deal of money to op- competent help, extending loans
rrute a bank. We must pay our when needed, und lots of other
rent, light and heat, provide good things for many or which thero
quarters for the use of our custo- is practically no return. Our du
mp rs and employ an adequule posit orn have become so accus
worklng force to take care of tomed to receiving nlf bank serv
Also we uiunt co freo that they never stop to
io same as any think of tho expense of provld-
other business, ing such facilities.
Has It ever occurred to you Do we usk of ot hers farmers,
thut many customers keep hat- merchants, railroads to supply
Hear Hir:
1 have received a copy of t he
n'Bllllll IOI1 (1HBIH-U ijr . mi; I'lii"" . Ik .1 . . . , ,
" SScTG: iZ in" .".' "SSIi-r
.l.-in iho 'rotlco of clmriclmc n. b00k "''l""-' 'cond. mn" a lm,.k when It an-
f,-o on any amount of d-po.lt fJr lnc Ju Ify Ihr. loan, Iml i nouncr, that It can no long
urn n-uon that Ih., bonka ar o- bn ""0-l? .Moat city bank, humlln Ihow anmll checking ac
average balance of one-fifth of th t The hunks do not wish .to dls-
of the I'nlon ".u " " tu,,,UK" ",,u t T,l
nn ii.uiin. i ni-jr imu in... u. vvo- unyuiiti finu iium .ipuni.iiia
tho nafo conduct of money; In fuct they do every
thing In their power to encour
ukii Buch u prnctlce. But the
nil
Helling- tho businem of
ponllora."
Am rroBldenl
!... llunbnra . A.anoli.Hnn . .f
weleonio this opporlunlly of alat- ""'f
l,r u, ren and oulllnina Iho tualncaa.
i. ...i- ni.u..n nr..rpn.i in I aak you to conalfler witli
In Iho resolution -moled above, what a a.nall account lucana to hnnkH fuel that tho proper placo
Klnco you havo chosen lo pun- bank and lo a customer. Home for auch anmll deposits la In tho
llh your resolution, I ahall, In Popl takn it for (minted that savings department where not
fairness to the bankern of this every dollar deposited means just only thero Is no aervico charge
for
.H IILlcn mnbi, IhlnlllUl III ICII prOlll TOr HIO IIUnK. Hill. wncin iiiih'" l-
. IliiL all that a bunk can possibly small deposits. Tho reason
It Is surprising that Iho mem- realize on the deposit Is the year- this Is that when handled
bora of the Orange, who havo ly rate of Interest on tho portion through tho savings department
been our custom- and friends of Iho deposit that It may loan the cost of taring for these de
for many years and with whom out. less, Iho operating expenses P whroaa
Ihe bankers of t nlon rountyhavo and luxes. where small balances nro main
stood side by side In Ihe build- Take an account will, an aver- ' c m h" c 1
Ing u of this community, should age monthly balance of fie.,,,.. '' ' l'- '-v"rJnllbtt"11 k, "
pas. a reso on "condemning." The bank must keep a part of "' u" " u" to"'"r" . ' "
ii measitro the bunks have round this deposit us a rcservf with tno ' . ' ..... ....
iifcssary in the conduct of their federal Ueservn Kitnl.. without
business, without find, obtaining Interest, and a purl on liaiW, "(
tho facts which ld the bunks lo per cent, In all. Icvim: Vi",-'f
the adoption of this charge. that can tie loun -.l mil. tt
It Is also surprising thai a (ret 8 per cent inti rest mi IM.-i
gro ip of hiiMlncHK men should not 4.U Tor tt whole .-;.i. Hi it
moh-iKiiind the nature and basis means a total poi'M- fMiMioj
ror milking a service charge on of $3.2 on this nc mmf, or i-s
iiccounts maintaining an imnt;e than $.27 a month. '1 h-' ist
biilance of h-ss than $6 tt.no ti mi:p has the prlvllen-e of diawlng
month. checks on this balunco and It
Kir hI of all permit me lo stute costs us al least six cents lo
Dial (he charge now made by handle every check that goes
Ihe hunks Is not, us stated In the through this hank. (An imulv-
reKoiutlnn, a charge on "deposits." sis of Ihousuuds -of accounts
It Ih purely und simply a service mude by the American Hunkers
charge Hnd Is Intended to cover Association shows t lie cost of
a part. oT the expense of hand- handling checks to range rrom
Mng the ' nil rous checks anil five to ten cents an Item.) Ten
other Items Tor C'-rlain' accounts, checks a month, which Is a miiuII
The practice of making a clmrgn number for such an account,
of this nHluri: on smull accounts wo.ild cost the bunk $.6 lo put
In so general throiifrhout the through Its books. That cost
country that It Is strange lo find amounts to l.'2u a year. I -Its
purpose nnd justice mlsunder- ducting the possible gross cam
stood by the members of the ing or 3.2U a year leaves a net
(.range. This Is a common prsc- loss of $4.'"i for every such ac
tice with most banks with the couul. And this -, Is an account
exception that In )urger eoniin )- with an average balance or fMUMr
nllles the service charge varies on which no service charge ts
from $.& to $2.f0 and the bal- asked. Hmaller balances mean
mice on which there is a charge smaller earnings and In many in
may be as high us $.i0ft.0. stances no earnings at all.
A glut pin statement of fact In The 1 H. Post Office Depart -
relation to the conduct of a ment makes a charge for every
hank's business ' will imtkn the money. order drawn und there Is
reason for this charge clear und, no complaint made, even though
of money, not only without
service charge, but uIho It agrees
to pay Interest oil these smull
amounts. The way to receive
mich Intercut and not to pay ti
fv-rvtce charge Is to mnko suc'i
deposits in the suvlngs depart
ment. If n man's requirements
are such that he must maintain
a checking account, even with tt
hula nee of less than $50,00, tht n
he should willingly pay a month
ly service charge in order to
save the bank from tho loss Iti
v irred In carrying his account.
1 have gone Into this mailer
rully us I desired all Ihe mem
bers of the Orange, and the gen
eral public, to umlciHtand the
ruclM that have led the banks
of this county lo adopt the gen
eral practice, of h service charge
on small checking accounts. With
Ihese facts boforn you I feel sure
that, tout end of publicly "eou
flemtilntc" the hanks for their ac
tion, you will grant the juyltee;
and reasonableni-HS of our ponl
lion. Assuring you of our desire, for "
Mm continued success of yon or
ganization and our wish .to co
operate with you In all mutters
of mutual Interest, 1 am, '
Very truly yours,
11. K. rooUUOK.
President Cnlon County Hankers
Association.
I
ii
It
1
1
1