VOL. XLVI.-XO 14,631. PORTLAND, OREGON, WEDNESDAY, OCTOBER 30, 1907. PRICE FIVE CENTS.
5
FUN
money
TO BRING RELIEF
Must Pay for Vast Vol
ume of Exports.
LARGE SALES OF STAPLES
Shipments of Tobacco Will
Break Records.
MONEY TO MOVE CROPS
JTew York Banks Will Meet Reason
able Demands, buts Pay Out
Nothing for Hoarding Runs
on the Banks Cease.
THE FINANCIAL STATUS.
NEW YORK. Large sales of 'cop--pr,
tobacco and other staples
cause flow of foreign money to
United States. Gold engagements
Increase to $20,000,000. Banks pay
money to move crops In West and
South, but not for hoarding. Runs
on banks- cease.
KANSAS CITT. Wyandotte State
Bank. Kansas City, Kan., ab
sorbed by Commercial , National .
Bank of Kansas City. Mo. I
NEW ORLEANS. Stock Exchanges
suspend business till Monday by
request of Clearing Houses.
CHICAGO. Situation throughout the
West improving. Few savings de
positors give notice of withdrawal.
GERM ANT. German Imperial Bank
raises discount rate 1 per cent to
check exports of gold.
FRANCE Bank of France will re
sist gold exports, but will assist
New York Indirectly.
ENGLAND. Advance in German dis
count rate depresses stocks, and
Bank of England expected to In
crease discount rate.
CLEARING. . HOUSE , .Certificates,
adopted by banks: San Francisco.
Los Angeles, Salt Lake, Spokane.
Portland, Kansas City, St. Louis,
St. Paul, Milwaukee and many
other cities.
NEW YORK, Oct. 29. The enormous In
fluence which American products are ex
erting: In building up a credit balance
abroad has been ' the ' most signal devel
opment of the financial situation today.
Reports from all quarters show that the
(treat American staples wheat, cotton,
copper, tobacco, oil, meats are on their
way to Europe, this being: the season of
the year .when American products are
marketed abroad. The Immediate effect
of these shipments is to give the United
States credit abroad which can be speed
ily converted into cash. These natural
resources of the country promise to ex
ert even greater influence than the sale
of American securities abroad.
The foreign sales of millions of pounds
of American copper yesterday were sup
plemented today by reports of similar
heavy exports, today's shipments alone
giving a foreign credit of $14,000,000. The
shipments of tobacco to Europe this year
promise to break all records. Europe
will pay over J100.000.000 for this tobacco.
Gold Engagements of $0,000,000.
Several favorable events 'marked the
close of the financial day in New York.
The engagement of $2,000,000 in gold by
the First National Bank of Gfelcago and
of $900,000 by a Boston bank hrought the
total gold engagements up close to $20,
000,000. The raising of German bank
rates in order to prevent America from
drawing German gold produoes little ef
fect on the situation here.
While money at the Stock Exohange
was loaned during most of the day at
high rates, it fell near the close to 6 per
cent, offers of several million' dollars at
that rate being made by a number of the
leading banks. ,
Ie Money to Move CropB.
Comparative calm reigned among New
York bankers. They ail realised that the
pressure for money was not over, but
they felt generally that unreasoning panlo
was at an end and they would be able to
meet all reasonable demands for cur
rency. These demands are coming in
considerable amounts from the West and
South in order to obtain money to move
crops, and it is feared that the sections
where the movement is largest may be
more or less hampered In their efforts to
obtain funds. The general refusal to pay
cash for hoarding, In the West and South
as well as in New York, It is believed will
prevent the undue absorbtlon of cur
rency and permit the employment of
what Is available in the most effective
manner. The large banks of this city
are gaining deposits from the banks
which have been under suspicion, and
this tends In a measure to concentrate
money .where it can be used most ef
fectively: but on the other hand,' it cre
ates debit balances at the Clearing-House
against the banks which are losing de
posits, which are not -always easy for
them to meet without sharply curtailing
their loans, even with the assistance of
C lea ring-House certificates.
No More Runs on Banks.
Runs upon banks are practically over.
Persons who present large checks and
ask for their payment in currency are In
vited to consult the bank officials. In
casesvwhere their need for currency Is
evidently legitimate, they usually receive
It; In cwx! where .it Is sought lot hoard
ing, they are usually convinced that
money is better off in the bank or that
they should accept certified checks for
deposits elsewhere.
The arrival of nearly $30,000,000 in gold,
it Is believed, will considerably relieve
i the situation and perhaps make call
money a little lower on tne biock ex
change. failures Few and Insignificant.
Aside from New York conditions, all
points showed a favorable tendency. In
New England there was no sign of ser
ious unreBt, and tiie recent disturbance in
Rhode Island Is practically over. No
failure was reported at any point
throughout the country. It should be
borne in mind - in this connection that
there are over 12,500 banks in the' United
States and that the number of Institu
tions which have recently failed is of
lnstgnlflcent proportions as compared
with this total.. It was pointed out today
that the failure of a minor bank is im
mediately known from end to end of the
country, whereas, the public overlooks
the fact that some 12,500 banks are open
for business as usual and that not one of
the really important banking Institutions
anywhere - has shown the slightest sign
of unsoundness.
On the whole, the banking community
takes the .favorable view of the outlook
and is particularly encouraged because
of the large foreign credit secured
through enormous shipments of Ameri
can products.
GOLD AVILL FLOW WESTWARD
Despite Precautions Europe Must
Pay for Our Crops. ".
NEW YORK, Oct. 29. The' announce
ment that the Imperial Bank of Germany
had raised Its discount rate from 6Vi to
6i per cent In order to save its gold
holdings was not unexpected by bankers
here. ' It Is thought quite Mkely that the
Bank of England will follow suit by
raising its rate at the regular meeting on
Thursday. . Last year, when the United
States was absorbing English gold, the
rate was raised by the Bank of England
at a special meeting and it will be a
favorable sign if the matter Is not taken
up until the regular weekly meeting of
the directors. -
Will Scramble for Gold.
The scramble for gold Is such as all
financial centers London, Paris, Berlin
and New York that the metal will go to
the highest bidder and under present con
ditions New York is likely to appear for
a time In this role. Her ability to get
gold is due not only to the need for it,
but to the large credits which are being
established by the movement of the crops
and other staples and by the sale of
American securities. It Is believed this
will be" effective to place sufficient gold
at the command of the New York market
and to maintain credit and cause the
resumption, of banking operations in the
usual manner within a few days. -
The price of various grades of copper
advanced from to 1 cent per pound on
the Metal Exchange today. Lake sold at
13414c, "lectrolytic 13ttj?lc and casting
at lSnc.
The forcing of stocks on the market
continued and successively lower price
levels were-established. Some of the high
grade . stocks were ' under the severest
pressure, notably the two great trunk
line stocks, the New York Central and
Pennsylvania. The former had fallen 4
by the afternoon and Pennsylvania was
down an extreme 5. There were general
declines ranging up to five points and
over.
Call Money Rates Fall.
For the first time in more than a week
out-of-town banks made loans on the
Stock Exchange today. Several of the
local trust companies also made loans,
nearly all at 75 per cent. Shortly after 2
o'clock the rate fell backto 50 per cent
and a few minutes later It was offered
at 30 per cent. At 2:80 o'clock call money
was being loaned at 20 per cent. Small
lots loaned shortly before the close at
6 per cent.
The pressure of the liquidation relaxed
late in the day and when some additional
sums were loaned at the Stock Exchange
by the banks, considerable rallies fol
lowed. The demand did not persist at
any extensive recoveries. The late re
coveries In prices of stocks were well
maintained up to the closing.
Owing to the shortage of currancy here,
the' banks today began to charge $1 for
New York exchange. Bankers continue
optimistic.
It was announced today that several
of the banks .which were compelled to
suspend last week have about perfected
their plans to reopen for business. 'Presi
dent Montgomery, of4he Hamilton Bank,
a Harlem institution which closed last
week, said today:
This bank will resume business in a
few days, not later than Monday next, in
any event. I understand also that the
Twelfth Ward Bank will resume in a few
days."
SAX FRANCISCO GUARDS CASH
Savings Banks Require Not Ice, While
Otlier9 Issue Certificates.
SAN FRANCISCO. Oct. 29. Acting on
the advice of the Clearing-house Assocla
tlon. the savings banks of San Francisco
today decided to place their depositors on
a "notice basis." They win not pay our.
funds unless a notice has been given
ranging from 10 to 90 days, according to
the sums to be withdrawn. Notice of 10
davs will be required on sums from $100
to $1000 and more time If the amount be
greater. It was stated that this step was
taken, not because or immediate neces
sity, but to provide a precautionary
measure and to act in accordance with
the Clearing-house representatives. The
savings banks are not members of the
Clearlng-houBe Association.
Every savings bank of this city "was
represented to be in excellent condition
For months preparations have been go
ing on to meet any eventuality, yet It
has been Impossible to withdraw every
dollar- deposited from investment. R. M.
Tobin, secretary of the Hibernian Bank,
said after the meeting:
"It is believed by the savings banks
that the reasons which made this step
necessary will soon disappear and that
an abundance of the circulating medium
will soon render It possible to resume the
regular course of their business."
The mercantile community today ac
cepted with complacency the adoption of
Clearing-house certificates by the com
mercial banks, and no serious dlsturb-
' tConsluded jon.Eaxe a.) -
GOOD NEWS FDR
POOR
CONSUMER
PricesofFoodstuffsWill
Soon Fall.
CUDAHY MAKES PREDICTION
Big Packer .Says' Meat Will
Soon Be Cheaper. ,
BUTTER AND EGGS ALSO
.Merchants Forecast Close of Era
of High Prices Meat Will Fall
10 Per Cent and May
Go Lower.
CHICAGO, Oct. 29. (Special.) Relaxa
tion from the strain of high prices in.
foodstuffs, which will soon undergo a re
duction of approximately 10 per cent, was
the forecast made by local Jobbers and
merchants today. Predictions credited to
Edward A. Cudahy, of Omaha, who said
his company had reduced its prices 10
per cent, A inspired Chicago dealers to
voice expressions calculated to cheer the
average consumer. In some Instances
reductions are looked for within a few
days, but there is no general move just
now to put lower prices into effect.
With the proposed cut in meat comes
the announcement that the price of but
ter soon will reach a point which will
take that commodity out of the luxury
class, where it long has been placed.
According to Daniel Coyne, of the com
mission firm of- Coyne Brothers, butter
now selling at 26H cents wholesale .will
reach 25 cents before the end of the week.
Eggs according to Mr. Coyne, soon will
recede from their present wholesale price
of 25 cents per dozen.
Local packers express no surprise at
the prediction made by Mr. Cudahy, -some
-declaring that the general decrease In
tne price of meat may exceed 10 per cent.
Louie F. Bwift, president of Swift & Co.,
points to a drop of 25 cents in cattle this
week, an Indication that retailers should
sell cheaper.
EUROPE BUYS MUCH WHEAT
Break in Price Brings Large Orders.
West Aids the Situation.
CHICAGO, Oct. 29. The break in the
price of wheat today brought large
European orders for immediate ship
ment. Six hundred thousand bushels
of red Winter wheat was sold here to
day for shipment East.
Chicago bankers regard this move
ment as significant of the powerful
V - X X
t .
"SORRY TO CALL ON IE MS MORNING, FBK BREAKFAST, I-AIY ; BUT ME
aid which the West is bringing to the
financial situation. . They say that if
the movement of the" great staple con
tinues to grow, the obligation to Mils
country created abroad will be so large
that It will be Impossible for European
i . ,
The Late Charles IT. Deere, Million
aire Plow Manufacturer and 1111-
ro is Republican Leader.
banks to retain their gold even by fix
ing discount rates at the maximum.
E RIOT ACT
PRESIDENT WILL. NOT CHANGE
HIS MIND.
Bourne, However, Denies That
Roosevelt Intimates Displeasure.
Says Politics Not Mentioned.
OREGON IAN NEWS BUREAU, Wash
ington, Oct. 29. The New York Herald
this morning prints the following dis
patch from Its Washington correspond
ent: Senator Jonathan "Bourne, of -Oregon,
who is the most active third term prop
agalnst. having offered $1000 for the best
essay on why Mr. Roosevelt should serve
a "second elective ' term." whether he
wants it or not. heard the riot act from
the lips of the President today.
Senator Bourne declares that the Pres
ident did not tell him "to let up" and
even if so requested, he would not relent.
But it Is understood that the President
Informed Mr. Bourne - In no uncertain
terms that he meant what he said in de
nying the possible honor of another nom
ination and did not propose to be dra
gooned, into changing his mind. There
was no breach,' but thea Is no denying
that Senator Bourne's -propaganda does
not meet with the President's approval.
"President Roosevelt has no intention
of making any additional statement re
garding a third term until Secretary
Taft returns to America."
Senator Bourne, when shown the fore
going dispatch, declared it was untrue
and without the slightest foundation.
When he called at the White House yes
terday, to present to the President Bx.
JohnBon and his wife of Portland he says
that during their talk with the President
politics was not tnentiolned,' and abso
lutely nothing was said that could form
the basis for the above dispatch.
BANKS TILL MX' WEEK."
PORTLAND
BANKS
TO OPEN TODAY
Clearing House Sys
tem Is Adopted.
CASH IS READY FOR PAYROLLS
No Coin or Currency to Be
Shipped Out of Town.
DRAIN OF MONEY CHECKED
Business Will Be Done hy Checks
Payable Through the Clearlng
House Savings Banks Will .
.Require Withdrawal Notice.
i
WHAT THE NEW BANKING
SYSTEM MEANS.
The Portland banks will open to
day under th Clearing Houss sys
tem. No coin or currency will be paid
out except for payrolls or emer
gency purposes.
Checks of depositors will bft hon
ored through the Clearing House,
but will not be paid In cash over
the counters of the bank.
If you are a depositor In a Port
land bank and wish to pay a bill or
a debt, draw a check on your bank.
Mark It "Payable only through Port
land Clearing House" and give the
check to your baker, grocer or mer-
chant. Just as you ba-e always done
If accustomed to pay your bills by
check.
If you reectve checks on Portland
or out-of-town banks, deposit them
as usual. You may then draw
checks against your account against
the amount deposited.
In other words, business will be
transacted among bank depositors on
a checking basis.
Depositors In savings banks will
not be allowed to withdraw money
without giving notice.
The Clearing House Certificates wlljj
be used only in settling 'balances
due from banks In the Clearing
House. ' -
Portland banks will open this morn
ing for business, but transactions will
be effected through the clearing-house,
on. the same basis as has been adopted
by other cities of the United States.
Only In case of taking care of payrolls
or where money is urgently needed
will' the banks pay out coin or currency.
Business will be done in checks and
clearing-house certificate will be the
medium between banks.
The Clearing-House Association helft
MONEY IS ALL TIED IP IN DE
two meetings yesterday, and discussed
this plan of resuming business. The
bankers met early In the forenoon,
and again at P. SI. At the latter
meeting the plan was definitely adopt
ed, it being set forth in detail in a
resolution unanimously adopted by the
members.'- '
In adopting this course. Portland is
following the precedent established by
other cities of the country in the pres
ent times of stress. No currency will
be shipped to out-of-town correspond
ents by Portland banks as long as the
present conditions continue, and sav
ings banks of the city will enforce the
requirement that depositors give notice
of their intention to withdraw thelrN
deposits.
, The clearing-house plan of carrying
on business works well in other cities
of the country during the present scar
city of currency, and local bankers
believe it will be of great value here
in supplying legal tender until normal
conditions are restored. That this sub
stitute for money need not be in effect
very long is also believed. Bankers
predict better conditions within a short
time, and the resumption of usual
banking methods.
Resolutions of Clearing-House.
The first resolutions adopted at yes
terday's meeting were as follows:
"PORTLAND, Or., Oct. 28, 1907. ,
"Whereas, The banks of -Portland
have received telegraphic advice that
all the principal clearing-house associ
ations in the United States have de
cided to refuse to ship coin or currency
against the deposit balances of their
correspondents; therefore, be it . re
solved: "First That the banks of the Clearing-House
Association of Portland de
cline to ship coin or currency to their
out-of-town correspondents.
"Second That all checks, certificates
of deposit or drafts of customers and of
out-of-town correspondents be. paid
only through the clearing-house and in
clearing-house funds.
"Third That all Items on out-of-town
banks be taken only for collec
tion, subject to payment, in legal ten
der. -
"Fourth That the savings banks of
the City of Portland be Instructed to
demand notice of withdrawal of funds.
"Fifth That this action be and re
main In foroe so long as the leading
cities of, the United States maintain a
similar policy." '
The Clearing-House System.
The new system of banking on a clearing-house
basis was outlined In the fol
lowing resolution, which . was adopted
unanimously: .
"For the purpose of enabling the banks,
members of the Portland Clearing-House,
to afford proper assistance to the mercan
tile community, and also to facilitate the
lnter-bank settlements resulting from
their dally exchanges, be it
Resolved, That any bank In the Clearing-House
may at its option deposit with
the loan committee of the Clearing-House,
an amount of bills receivable, bonds, or
other securities, to be approved by said
committee, who shall be authorized to
issue thereon to said depositing bank cer
tificates of deposit, bearing Interest at
7 per cent per annum, In denominations of
$5000 to an amount equal to 75 per cent of
such deposits. These certificates may be
used in the settlement of balances at the
Clearing-House, for a period df 30 days
from the date thereof, and they shall be
received by creditor banks during that
period, daily, In the same proportion as
they bear to the aggregate amount of
the debtor balances paid at the Clearing
House. The Interest which may accrue
upon these certificates shall at the ex
piration of 30 days, be apportioned among
the banks which shall have held them
during the time.
"The securities deposited with said com
mittee as above named, shall be held by
them In trust as a special deposit, pledged
for the redemption of the certificates is
sued thereupon.
"The committee shall be authorized to
exchange any portion of said securities
for an equal amount of others, to be ap
proved by them at the request of the de
positing bank, and shall have power to
demand additional security, either by an
exchange or an Increased amount, at
their discretion.
"The amount of certificates which the
committee may issue, as above stated,
shall not exceed $1,000,000."
Checks 'ot Paid in Cash.
The Clearing-House through a commit
tee issued the following statement ex
plaining the workings of the proposed
system as follows:
"Under thlB arrangement depositors In
our city banks will receive payment
through the Clearing-House, and their
checks on the banks, must be stamped
Payable only' through the Clearing
House.' This means that checks on our
local banks will not be paid In cash at
the bank counters, but through the Clearing-House.
-"The banks, however, in order to pro
tect the laboring people of the community
from any suffering on account of the
stringency in the coin situation, will set
tle payrolls in cash and make other
small cash payments where absolute
necessity occurs.
"The Portland banks have taken advan
tage of the first of the holidays that were
asked for by the unanimous vote of all
the members of the Clearing-House to
prepare themselves for the Issuance of
Clearing-House certificates In the set
tlement of their balances between one
another, and the people of Portland are
to be congratulated that our banks are
thus handling the situation. When our
wage-earners and laborers know that they
will receive their weekly, or monthly sti
pend. In cash, we feel sure that there will
be no injury wrought upon this commu
nity by the banks of Portland following
in the footsteps of the banks of all the
leading cities of the United States.
"There should be no serious inconveni
ence in the ordinary transaction of busi
ness to our merchants by requiring them
to make their checks 'payable only
through the Clearing-House.' as In this
manner payments of obligations and con
tracts can be legally consummated, since
every bank in the Clearing-House will
(Concluded on Page 8.)
SiALL DECLARES
STRIKE IS ENDED
Says He Is Still Presi
dent of Union
THOUGH DRIVEN FROM MEETING
States Terms on Which Oper
, . ators Shall Return.,
ALL TO BE REINSTATED
Ignoring His Deposition, Small Calls
Off Strike on Account of Cha
otic Condition Seek Vindica
Hon at tho Convention.
-NEW YORK, Oct. 29 S. J. Small, re
cently deposed as president of the Com
mercial Telegraphers' Union, arrived in
Now York from the West today and was
refused permission to address the local
branch of the union at a meeting In
the afternoon, and tonight sent out a
statement to the . public, . "calling . off"
the telegraphers' strike. . After reviewing
hte efforts to bring about a settlement of
the trouble advantageous to the strikers,
and the action of the union In declaring
his office vacant and electing a successor,
Mr. Small said: .
"I feel It my duty as the legallly elected
president of the aforesaid organization to
Issue this statement, declaring a chaotic
condition to exist within our official
ranks, and further declaring the teleg
raphers' strike, unquestionably the great
est and cleanest fought battle of recent
yaiars, at an end dating from Wednesday,
October 30, 1907,' and on the following
terms to wit:
"All strikers will be reinstated without
discrimination, except those against whom
serious charges can be substantiated, the
accused to have the privilege of making
defense In writing through me, when
their cases will receive prompt and care
ful consideration.
The 10 per cent increase granted March
1, OT, will be strictly adhered to.
"Other matters mentioned In the bill of
grievances to be taken up and considered
upon my return to New York within tst
days, provided the strikers accept and act
upon these Instructions."
' Mr. Small declares he is willing to
"await vindication at the next regular
convention, to be held In Milwaukee next
June."
Late tonight Daniel L. Russell, chair
man of the State committee. Issued a
statement to the effect that If the tele
graph companies were i prepared to
agree to reinstate all strikers except
those against whom serious charges
could be proved; guarantee that 1-fie
increase of last March would be given
without discrimination, and promise to
arbitrate all other matters contained in
the bill of grievances the signers of
the statement were satisfied that they
could pledge the committee to call off
the strike within 48 hours. The state
ment was signed by Russell, It-rey
Thomus, Joseph F. Ahearn and R. M.
McLennon.
, Surrender at Springfield, III.
SPRINGFIELD, 111., Oct. 39. All the
Western Union operators here who went
on strike last August 'returned to work
tonight. All the Postal ' operators also
decided to return to work and made ap
plication for their former positions.
CONTENTS TODAY'S PAPER
Th Watber.
XESTERDAY'8 Maximum temperature, 00
dere; minimum. &5.
HDDAT'8 Rain; southerly winds.
Financial Situation.
Immense exports will force Imports of for
eign money and relieve tringenoy.
- Fare 1.
Kbw York bank furnish money to move
crops. Page 1.
Increased engagements at gold for Import.
Page 1.
German Imperial Bank raises discount rata
to check gold export. Page 2.
Clearing-house certificates adopted In many
cities. Page 1.
Fon-Ign.
Harden acquitted of libel; trial becomes
political Issue. Page 4.
Politics. ,
Gtovernor of New Jersey signs Mil for di
rect primary and direct election of Sena
tors. Page 1.
Reported snub to Bourne by Roosevelt t
Bourne denies It. Page 1.
- IomestIc.
Mta. Hart Jo denies her husband's latest
- charges. Page 2-
Jftobraska official severely jrnubs Japanese
' Consul. Page 2.
Small declares operators strike (Off and will
fight for presidency. Page 1.
Prices of foodstuffs to be reduced. P&gre 1, .
Double murder and suicide by prominent
; Indian Territory man. Page 4.
Ftorty sailors devoured by cannibals near
Cape Horn. Page 3.
TTnlon Pacific stops construction work. ,
Page 2.
Romantic marriages stopped . at little
. Church around corner. Page 4.
Spore, t
Portland shut out by Log Angeles. Page T.
National Baseball Association meets with
prospect ef stormy session. Page 4.
Aittell knocks out Meeks In four round s
; Page 7.
Pacific Coast.
Rvef shadowed to Fdrd's office when ha
went to receive bribe. Page 2.
Wry fern' Oregon banks take advanbje of
holiday to close. Page 6.
Xtxxnbermcn draw first blood In contest with
railroads. Page 8.
il
I.