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About Morning Oregonian. (Portland, Or.) 1861-1937 | View Entire Issue (Jan. 1, 1914)
TITE 3IORXIXG OKECONIAN, TOURSD AT, JAMJAKY 1, 1914. PORTLAND BANKS RANK FIRST AMONG ALL THOSE OF THE PACIFIC NORTHWEST Capital, Surplus and Undivided Profits Par Greater Than Those of Seattle Institutions or Combined Banks of Spokane, and Tacoma Average Reserves Are More Than 35 Per Cent. It; I,yd-U Baker. Editor Pacific Bukcr. THE permanent banking strength of a city is confined to its capital, surplus and undivided profits that is the money which the management originally put, or afterward let remain, in the business. The flexible banking strength of a city tf i ? means Us reserves, ,f v 5 or t h e amount o f money which its banks set aside tor the payment on de mand of their lia bilities. In the first of these elements Portl and far ex ceeds any other city of the Pacific Northwest, and in the latter is always a top-notcher, and generally a leader. For Instance, Port land has 11.000,000 more capital than Seattle, and $l,21o, (100 more than Spokane and Tacoma combined. Its surplus and undivided profits are larger than Seattle by $1, 093,710.73, and $2,490,262.65 larger than Spokane and Tacoma combined. Its average reserves are over 35 per cent. Here are the figures from which the foregoing computations are made: Lydell Baker. been In business 20 years or longer. Because of the fact that'prior to 1909 state banks did not report at all, it is hard to make any satisfactory compar ison of the early banking strength of Portland with that of the present day. The first figures available for compar ison are those taken from the reports of the National banks of Portland in response to the Controller's call of No vember 9, 1905. At that time there were three National banks in Portland and they reported total deposits of $21,162,773.71. The total capital, sur plus and undivided profits reported were $2,694,573.48. This, of course, does not represent the banking strength of Portland at that time, as only the National banks are included in the statement. On October 21, 1913, the six banks of Portland operating under Na tional charters report total deposits of $40,426,114.48. In the report of capital, surplus and profits, the figures of the Bank of California branch are included in the report of the home office at San Francisco, so, excluding that bank, the other five National banks report on that Item, $7,233,503.92. The 1905 call came at a time when Portland was un dergoing one of the greatest booms in its history, during '.the period follow ing the Lewis and Clark Exposition. It will be seen, however, that in the eight years that have intervened the Na- Capttal Surplus and profits ... Deposits (.... Cash and exchange . . Percentage of reserve Portland. .$ 8,365,000.00 . 5,139,952.14 . T4,B64,213.1tt . 2U.204.4U6. 10 35.1 Seattle. $ 7.565,000.00 4.046,241.35 81.533.700.54 28.4U4.637.tU 32.3 Spok'e-Tac'a. $ 7.150.0O0.OO 2,649. 680.4H S3.72T, 990.46 18,277,323.18 35.8 In the successive steps which Port land has taken as village, town, city and metropolis, it has been its good fortune to be served by banks that have kept pace with its commercial progress and importance. In fact, the first bank established at this point Is still In existence. It is Ladd & Tilton's, which was founded in 1859 by the late W. S. Ladd and his associates. The part Mr. Ladd played as a con structive force In the upbuilding of the Pacific Northwest and the Impress left by his powerful personality upon the commercial life of this section is familiar to all acquainted with the his tory of Oregon. It is not surprising, therefore, to find the institution with whose business career ha was most closely connected still a leader among Portland banks. In point of age, the Ladd & Tilton Bank is the oldest bank in the States of Oregon and Washing ton, and there is but one older bank on the Pacific Coast the National Bank of Z. O. Mills & Co.. of Sacra mento. The First National Bank of Portland, founded In 1866, Is the oldest National Bank west of the Rocky Mountains and Is still the largest city institution op erating under National charter. This bank also calls up the names of Its own premier pioneer bankers. They are Henry Failing and H. W. Corbett. These three men, Ladd, Falling and Corbett, together with that merchant prince, C H. Lewis, were leaders In laying the . cornerstone of Portland's financial and commercial importance. As age Is counted in this new land, Portland has several other banking in stitutions that are entitled to mention as belonging in the veteran column. The local branches of the Canadian Bank of Commerce and the Bank of California, the Merchants National and the Portland Trust Company, either under their present or some former name, were all established in the '80s, and the United. States National, the Hlbernia Savings, the Security Savings V Trust Company, the Citizens Bank and George W. Bates & Co. have all tlonal banks of Portland have very nearly doubled their deposits and in creased their capital invested more than two and a half times. Doubtless this condition would be found to be approximately correct for all the banks taken as a whole. On April 28, 1909, we find the first statement published which included all the banks of Portland. The total de posits then reported amounted to $53, 191,792.12. By comparison with the table published above it will be seen that In less than four and a half years the banks of Portland have Increased their deposits $21,372,121.71, or 40 per cent, and increased their capital In vestments $5,583,160.02, or 70 per cent. The growth of the city's banks is also illustrated by a study of the reports of the Portland Clearing-House. Bank clearances are a universally accepted barometer of general business condi tions in a city, although as such they are not quite as accurate as will be the system of reporting the total bank transactions of a city which the Ameri can Bankers' Association inaugurated at the beginning of the year 1913. Nev ertheless the trend of clearings forms a fairly reliable index to a city's com mercial growth, and In clearings Port land makes a remarkable showing. As this Is written the figures for the year 1913 are not available for purposes of comparison, but for the year 1912 ($697,087,000) were more than double those of the year 1906 ($281,000,000) and five and a half times as large as those reported in 1900 ($106,918,000). Portland's supremacy in capital in vestment has already been referred to, but an important phase of the matter has not. As commercial business has increased in volume, American busi ness houses have Increased in size and importance, and it has come to be gen erally recognized that any great com mercial city must have a certain num ber of large and strongly-equipped banks adequately to finance its com mercial interests. This need has been responsible for the great number of bank consolidations which have taken place in the United States during- the past ten years. Now it Is a remarka ble fact that although Portland has witnessed far fewer consolidations than any other city in the Northwest, never theless the city has more banks capi talized at a million dollars or more than any other Pacific Northwest city. Portland has five banks in that class, whereas Seattle and Spokane have but three apiece and Tacoma but one. As the business interests of the city have grown in importance the leading local banks have been able to make the nec essary changes In their capital invest ments without recourse to consolida tions. Incidentally it might be men tioned that, in spite of the fact that Portland Institutions have always been most liberal contributors to the bank ing capital of other Northwestern cities, Portland capitalists still own much stock of banks in Seattle, Tacoma and smaller cities of the Njrthwtst. It might . be interesting to review very briefly the changes that have taken place in the banking field during the past year. Since the first of the year the number of banking institu tions in thi3 city has been increased by four. Three new banks have been or ganized and a fourth bank, the Mult nomah State Bank, has been acquired by the annexation of the suburb of Lents. The new banks are the North western National Bank, the Lumber mens Trust & Savings Bank, and the Montavilla Savings Bank. The first two are capitalized at $500,000 and the last at $50,000. The Northwestern Na tional Bank began business the first of the year and has already grown to be an important financial Institution. The stock is owned by the same stock holders aa the Portland Trust Company and the two banks are operated In con junction. At "the beginning of this year the affiliated institutions will oc cupy their new home in the Northwest ern building, which has just been com pleted at a cost of $1,000,000 and is rated the finest office building In the city, and a fine tribute to the energy of the men back of these institutions. The Lumbermens Trust & Savings Bank was organized and its stock is held by the stockholders of the Lum bermens National Bank. It is also op crated in conjunction with the National bank and opened for business a few months ago. The organization of- the new bank made itA necessary for -the Lumbermens National Bank- to enlarge its office. A large amount of addi tional space was required and the quar ters of the now bank completely re modeled and new fixtures installed throughout. The Montavilla Saving's Bank opened for business during the Summer. It is a suburban bank and serves the grow ing business Interests of the Monta villa district. The bank has succeeded in building up a profitable business. The stock is mostly held by stockhold ers of the Merchants National Bank, although there is no identity of own ership between the two institutions. In February the Merchants Savings & Trust Company changed its name to the Commerce Trust & Savings Bank and increased Its staff. Shortly after ward the bank moved from Its old quarters at Sixth and Washington streets to Its present home at Morri son and Park, where it occupies quar ters practically twice as large as its former home." Officials of the bank state that it has enjoyed a steady in crease of business ever since the new office has been occupied. The three remaining strictly Port land banks of the larger class are the United States National Bank, the Mer chants National Bank and the Security Savings & Trust Company. ' The first is the largest of Portland banks which do not date back to pio neer days. Affiliated in ownership are the largest banking interests of Call- L THE UNITED STATES NATIONAL BANK OF PORTLAND, OREGON J UNITED STATES DEPOSITORY Your Financial Home the Coming Year fl The prestige of a banking account depends largely, upon the bank with whom you do your banking. f Thi institution stands for all that is implied in the term "banking." It transacts all branches of banking business with foreign and domestic banks. It carries accounts of banks, corporations, firms and individuals. . fj It assures TOU courteous consideration and the very best terms consistent with good business methods. CJ As a corporation, as a firm, as an out-of-town bank, as an individual or as a traveler abroad, your relations with this bank will prove advantageous to you. jf Correspondence invited. UNITED STATES NATIONAL BANK Third and Oak Streets, Portland, Oregon OFFICERSl ' ' J. C. AINSWORTH. President. R. W. SCHMEER, Cashier. R. LEA BARNES, Vice-President. A. M. WRIGHT, Assistant Cashier. W. A. HOLT, Assistant Cashier. PAUL S. DICK. Assistant Cashier. CAPITAL and SURPLUS $2,000,000 n fornia, those of the Wells-Fargo Ne vada National. In the increase of i's business the bank in recent years has taken the strides of a giant. Under its effective management the Merchants National is a popular insti tution, as its busy corridors at all times show. In recent' months the bank has moved uptown into a mod ern, specially-built building, the very heart of the commercial district. The Security Savings & Trust Com pany is continually expanding to meet the business demands upon it- If one enters the right entrance and passes the commercial, the safe-deposit, the trust and savings departments, he sees In efficient working order all the de partments of the largest of metropoli tan banks. Remaining on the west side of the river are the Scandinavian-American Bank and on the east side the Citizens Bank, the East Side Bank and George W. Bates & Co., bankers, all admin istering to the demands of peoples or localities which appreciate well-conducted local or special banks. Portland's Importance as a financial center is also appreciated by powerful outside institutions, which maintain ac tive branches here and contribute to the city's growth by specializing in cargo or over-the-sea shipments. They aro the Bank of California and the Canadian Bank of Commerce, institu tions which take a prominent part in international trade throughout the world. , On December 1 of this year there was consolidated the Commerce Trust & Savings Bank with the Scandinavian American Bank, the combined institu tions taking the latter's name, but occupying the former's quarters, and with the State Bank Examiner becom ing, as vice-president, active in the management. It is understood that steps have been taken by the directors of the bank for the erection, in the downtown district, of a modern build ing, their future home. A person In .touch with banking in Portland in recent years could not help remarking how the banks, during a pronounced movement toward real es tate and fixed Investments, have them selves held to the best traditions of commercial banking, and held their In vestments liquid and free-moving, as those of a commercial bank should al ways be. No greater mistake could ever be made by a borrower than when he supposes a bank does wrong in not putting more money in real estate. That deposits, savings excepted, are demand obligations and should not be tied up In long-time Investments is a fundamental principle of banking. It is the province of commercial banks to aid commerce and trade, and Port land banks have done this. LABB BANItv Established 1859 Capital Surplus Deposits $ 1,000,000.00 1,000,000.00 14,000,000.00 Interest paid on Savings Accounts. Interest paid on Time Certificates of Deposit. We issue Foreign Drafts Letters of Credit and Travelers' Checks OFFICERS: 'W. M. Ladd, President J. W. Ladd, Asst. Cashier Edward Cookingham, Vice-Pres. R. S. Howard, Asst. Cashier W. H. Dunckley, Cashier Walter M. Cook, Asst. Cashier DIRECTORS: W. M. Ladd Edward Cookingham Charles E. Ladd Theodore B. Wilcox J. W. Ladd Henry L. Corbett