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About Morning Oregonian. (Portland, Or.) 1861-1937 | View Entire Issue (April 5, 1915)
TTTE BTOKKIXO OHEGOTCIAW. 3IOXDAT, APHIL' 3, 1915. BONDS DEMAND Jrend Is Toward Conservative Investment Recently. FRIGHT FROM WAR ENDING World Adjusts Itself to Condition and Kesalt Is Ever Increasinz Wish By Investors to Get High-Grade Securities. Br WILFRED SHORE There Is a growing demand for good bonds. People who a few year ago never thought of Investing in such conservative manner are now looking for high-grade bonds. The effect of ths beginning of th European war was to throw the whole world Into a scare, even the naraest- headed business men in Europe and America shared In the general rush to throw every form of investment and peculation overboard. The closing of stock exchanges and the declaring of followed. A state of friirht cannot continue indefinitely. The world therefore has adjusted itself nmewhat to the new state ot anairs. The worst has happened and so the future most be better than the present. People who owned bonds began to leei that there was perhaps not such press ing need to sell after all. In Europe the small investor hangs onto his bonds because he has become dependent on the income he derives from them. And when we speak of Europe's holdings in American securities it must be re membered that the bonds do not re main in the hands of the great Banners, but are held by the small investors. Selling by Europe Over. Many bankers still fear European llniiiriation. but for the reasons given I believe the main selling by Europe is ever and that it is perhaps more nicely that we shall see instead a great buy inar movement at the first sign of the end of the war. While Europe will nr.H creat amounts of capital and will borrow billions of dollars. American securities will be sought by many of those who now have their gold and savinics stowed away In all kinds of hiHinr olacea. It is this open question of what Eu rope will do that has kept our own rail road bonds so low. Municipal bonds have already largely recovered and I think they have discounted better conditions and cannot be expected to shown much further advance In the near future. Money Is remarkably easy now throughout the greater part of the United States. Banks have more money on hand than they can safely loan out locally and must invest these surplus funds in some manner, and the likeli hood is that they will, before long, overcome their fears of the European situation and seek investments in bonds of railroads, electric light and gas companies of the highest grade. It is a case of investing only in the best or not at all. IVeed for Investment Continues. Then, too. even in these quiet times, there are many who are making a little more than is necessary to live on, some are making a great deal more, and these must invest also. Their tendency will be much more conservative than ever before, and the buying of bonds by small investors is already very no ticeable. On some future occasion speculation will have its fling again, for history repeats itself in this as in all other things, but long, long before that takes place, bonds will have ad vanced in price to an unprecedented extent. Bonds are now a little higher than the low points of last year, but are still far below the prices which they - averaged when conditions were normal, International political conditions, both in Europe and In America, will cause the prices of bonds to rise and fall alternately, but I think the small im provement which has already taken place will continue and should later result in a great demand for bonds at higher prices. necessary to hold night sessions. The dispatch adds: "General opinion is that the commis sion, because of its general conclu sions in the Eastern rate case, will not delay a decision. Because the Eastern lines got an advance and the Western lines have made a very good case, so far as railroad men and their friends can judge, a favorable deci sion is expected. There is more doubt about the passenger rate case, which will begin May 17. The freight case schedu' beginning with the shippers eide .allows: March 30-April 2. the general proportion of protest; April 3- 8, unfinished evidence of railroads, if five days more are required: April 9. 10, rates on hay and broom corn April 12-13, cotton piece goods: Apri 14-16, coal; April 17-21, grain; April 22-23, fruits and -vegetables; April 24. rice; April 26-30, packing house prod ucts: Way 1-5, live stock: May 6-10, uncompleted testimony. Thirty days will be allowed to file briefs." In the Tea Room Today We Are Giving 10 Trading Stamps to Each Guest. Bring Your Friends and Fill Up Your Book Quickly ,-, Demonstration of Royal Worcestor and Bon Ton Corsets by Expert Corsetier Direct From the Factory Department 2d Floor I STOCK RULING HELPFUL REMOVAL OP LIMIT IN SEW YORK TRADING GIVES STIMULUS. Portland Banker Declare Outlook Promising and Early Retnrn to Normal Basis Expected. Among incidents of chief interest to financial men during the past week was the decision of the governing com mlttee of the New York Stock Exchange to recommend the aboliition of mini mum prices which were establisnea December IS as a safeguard against European liquidation .of American securities. When the news reached rortland there was much comment of a reassur ing nature. Bankers and business men here now are convinced that the rift the financial clouds is expanding and that before long business skies again will become clear and normal conditions in all lines of activity will prevail. During the past week locally the de. mand for money was somewhat stronger for taxpaying purposes. Now that the first taxpaying period of the year is over, the way is paved for a more marked activity in ordinary lines of trade. Highly favorable reports of crop conditions In the Northwest are having a stimulating effect. With an unusually large acreage in wheat and with the probable continuance of high prices for grain after next harvest, there is a growing feeling of optimism not only In Portland but throughout the entire Northwest. Mortgage companies and building and loan concerns report that there are plenty of funds available for properly improved property as well as for sub stantial building enterprises. An in vesting feature In this connection is the fact that scarcely any effect from the war has been felt In the placing of mortgage loans in Portland. BANKS NOT BEING COERCED Federal Reserve Board Denies Tbat State Banks Are Forced to Join. It Is officially denied In Washing ton that the Federal Reserve Board is forcing state banks to Join the reserve system. It is pointed out that the friends of the Federal reserve act are anxious to have all classes of banking institutions co-ordinated, but at the same time they are not disposed to coerce any Institution into the ranks of the reserve banks. The policy is to make evident to the trust companies and state banks the advantages the reserve banks have to offer them so that of their own accord they will make application for admission. The reserve board is work ing out suitable regulations which will make it attractive to state banks to Join, and, if necessary, the board will ask Congress to pass legislation which will pluce these banks on a more de sirable basis. The chief drawback complained of at the present time Is that under the existing law a state bank entering the system cannot withdraw without liquidating. This phase of the problem is receiving close attention on the part of the members of the board and it Is expected that a satisfactory solution will be found. BANK BUSINESS IS GROWING Clearings in Portland Show Decisive Lead Over Seattle. Indicative of a general improvement in business conditions is he steadily increasing volume of bank clearances. Two weeks ago Portland clearings totaled $10,545,05-' during the week end ing March 27, and for the week ending April 2 clearings reached a total of S12.311.S39. For the corresponding weekly periods at Seattle the totals, respectively, were 110,361.453 and $10. 415.lt?. Total clearings at Portland for the past two weeks were 123, 256,891, and at Seattle they were S20.74i.615. Portland's lead over Seattle for the two weeks was $2.4Sl),27S. Clearings of Portland. Seattle and Ta. coma for the past week and correspond ing weeks In five previous years were: Portland. Saattle. Tacoroa. 1915 112.411. tJl $10.413.12 $1,765,404 3914 14.AM4;d 11.3J0.3SA 1!!3 11.S1S.0J0 1 1.602.l3 1912 14.S41.S32 1 O S tits. 4)-,;: 19U 11.654.702 10.03-SS9 1S10 10.0J4.744 11.27S.SO l.!74.84,1 2. ."71. 4.0-,3,051 4.9.'-3.04! S.OJ0.010 HIDE MARKET MORE ACTIVE Call Is Largely for Small Parcels to Fill in Broken JJnes. Reviewing the hide markets the Chi cago Daily Hide Report says: "A little more interest is displayed in all varieties ot hides, but the call of late has been largely for small par cels of hides to fill In broken lines. Leather manufacturers are not display ing any confidence in existing values, the trades being largely In necessary replenishments to tide over discrepan cies in the calculations on hide arriv als. Some shipments of foreign hides have been delayed and recent pur chases of domestic goods go to fill in until hides can be had through the regular channels. Country buffs sold down to 15c for the current grubby long-haired vari eties. Free of grub hides were traded in at 16c and 17c, running largely to firsts. Hides are now available at the inside price and bids are not over 16c. Packer native cows and extreme light native steors sold freely at 19c, this price generally being considered Book Filling I Event for Stamp Savers Olds. Wortman &'King Reliable Merchandise Reliable Methods Store Occupying Entire City Block Book Filling Event for Stamp Savers Trading amp ON ALL CASH PURCHASES In A II D epartments Of the Olds, Wortman King Store A BOOK FILLING EVENT FOR PEOPLE WHO ARE SAVING !B1 '31?&C. Green Trading Stamps Double Trading Stamps mean much to you from a saving standpoint. They mean double dividends on the money you spend. They mean a double sharing in The World's Greatest Profit-Sharing Plan Stamps are given on charge accounts if bills are paid in full .by the 10th of the month. THIS COUPON IS GOOD GOR 1 00 Free Stamps ChZThor if presented this week before 6 P. M., April 10, at our stamp booth, on main floor, with a sales check (charge or cash) for a Woman's Suit or Coat, or a Man's Suit or Coat It you can't use this coupon yourself cut U it ouj; and pass it on to a friend who can. " The Hand of Thrift Will Never Waste " Millions of people in the United States are saving S. & H. Green Trading Stamps. Hundreds of thousands of homes are fur nished and beautified by saving S. & H. Green Trading Stamps. The premiums are a high standard of quality, fit to grace the most palatial home. The range for choos ing is so varied that almost every want can be satisfied. If you are not staving stamps you are the loser. Start a Book Todaij BANKER THINKS STRAIN IS NO CAUSE FOR WORRY Business Conditions Fundamentally Sound, Land Yet Valuable, Crops Abundant and Prices Good, Insuring Recovery of AU Lines of Trade, Says E. G. Crawford. T BT B. Q. CRAWFORD, Vlca-Presldent of Lumbermen National Bank. HE depression through which this country has been passing is in some respects the most severe that we have had in a genera tion. Each business depression varies from every other depression and the causes, while different in some respects, or nrnbablv fundamentally the same. tTndoubtedlv the extravagances . of the past few years have had much to do with the conditions we are facing today. ... Speculation's End Expected Soon, That the fundamental conditions of the country are sound, however, has been demonstrated the past year. The full market value at present. Branded pubi,c at iarge never realized the se- gooas continue ratner mow on account . tht wa. suddenly DUt upon the financial resources of this country of the meager stocks and smallness of the slaughter. Rates are considered steady at 18 H if? 19c as to quality. Calfskins suffered further declines. DISCOUNT RATES SHOWN Regional Banks' Figures on Paper of Varlons Maturities Listed. Below are shown the rates of dis count at the various Federal Reserve Banks of the country. The first col umn applies to notes, drafts and bills of exchange having maturities at time of discount of not more than 30 days. The second column applies to similar paper with maturity at time of dis count of more than 30 days, but not more than 60 days, and the third column to paper with maturity more than 60 days but not more than 90 days: su aays. w aaya. w flays. Bank of Pet. Pet. Pet. Boston 4H New York 4 4 Philadelphia 4 4 4 Richmond 4Vk 4(4 S Cleveland 4 4 4ti Atlanta 414 44 B Chicago 4 4 4'4 St. Louis 4 4 4H Minneapolis 4 454 a Kanas City 4 4 4hi Dallas 4 4 4i San Francisco 4 4 4 More than 80 days tet. St. Lou I j, Kansas City and Dallas & Ail others i Acceptances. to 4 par cent. "Whitman Ranch Brings $10,000. WALLA WALLA. Wash.. April 4 (Special.) The Lyons estate of this county has Just bought for $40,000, mostly cash, the old Mecklem ranch of 0 acres, three miles from Pullman, Whitman County. laat Ausrust. when war was declared throughout Europe. It shows the enormous resources of our country, to have passed through such a period without any more disasters than have happened. Fortunately for us. we had been gro ins: under slow bell for some time. Liquidation had been in process and speculation was about to end. The resources of the country were being closely guarded; we had established new banking system, and although not yet in operation, it served to inspire confidence in not only the banker's mind, but the public at large, as well. We were blessed with good crops, which have been sold at high prices; the farming community was never more prosperous. Banks Have Money in Vaults. In a few months we have turned the deficit of large obligations to Europe into surpluses in the shape of credit balances due this country. We have paid off a tremendous amount of tem porary emergency currency. The money for crops has been returned to the banks, and the easing up in the situation all along the line has been such that at no time in the history of the United States have the banks been in a more secure position. Instead of defending honest business, business men allowed the professional politician to take the reins and mis lead the public into passing many dras tic laws which have finally resulted in breaking down incentive and individual effort. While perhaps many of these laws were needed in a moderate way, many of them have served to stifle in dividual effort. Coming down to local conditions, I see no reason for pessimism and while no false hopes should be Held out to any one, the signs point plainly to re covery from the severe illness we have Just passed through. Our wonderful resources are still here. The Great Empire tbat has .been talked of so much at banquets still remains. The soil is Just as fertile. We have the same rain and the same sunshine. The era of speculation when men attempt to get rich by trading paper with each other, which they call wealth, has en tirely ceased, but the property still re mains. Spend Less Js Advised. " We must take Into consideration the lessening of all values in our tax col lecting. Municipalities must apply the same rule that the business man does. We must spend less, rather than search for new ways to get more money. Let tie all look the problem in the face. The people of this section of the country certainly have many things to be thankful for. We do not have to face the conditions tbat exist in the older sections of the country in a dense population. From a (business standpoint we can look forward to another bounti ful crop. More acres of wheat are be ing planted than ever before. Pros pects for a good wheat crop are splen did. AU kinds of farm products will be plentiful. The prices of wool, of bops, of livestock are good. Many new industries are bringing in wealth to the country every day. This de pression will pass as other depressions have passed and the men who do the best they can. and by doing the best they can, help the community, will come out ahead in the end. We must quit talking pessimism; encourage our neighbor, and in a few years we will be found to be stronger for the strug gle and with actually more dollars than ever before. Finance and Industry. Lumbermen's Trust Company, has gone to Ban Francisco on business in connection with his company. He also will visit other cities in California and expects to be absent about two months. J. H. Albert, president of the Capital National Bank, at Salem, 'and Leslie Butler, a Hood River banker, together with S. Benson, or Portland, nave been appointed by Governor Withycombe as members of an advisory committee to the State Highway Commission. B. O. Blanchar, cashier of the First National Bank of Hood River, visited among Portland bankers last week- Ralph H. Burnside. one of the leading lumbermen and financiers of the Wlll- apa Harbor district, was in Portland last week from Raymond. Mr. Burn side reported a general improvement in PORTLAND FINANCIAL MEN WHO FORESEE GENERAL BUSINESS IMPROVEMENT. RATE HEARINGS NEAR END Western Freight Tariff Case Decis ion Espected to Be Made Soon. Commissioner Daniels, of the Inter state Commerce Comlssision, is quoted in a Ohicago dispatch as saying that hearings in the Western freight rate case will end May 10, even if it be i "i u f vA -N - 1 f 1 I -:: i j i - in ! A x . i w.v. r .A v-, .v . i Edgar H. Seaseaiek, Cashier ef Northwesters National Bank. E. C. Cravrtoru, Vice-President of Lumbermen's National Bank. Wilfred Shore, President of Wil fred Shore A Co. business conditions In the Willapa Har bor territory. , The amount of gold still held at Ot tawa for the Bank of England account is said to be approximately 190,000,000. Only $10,000,000 of the original gold shipments from New York have been returned. The Oregon Iron & Steel Company's plant at Oswego has resumed opera tions with a full crew. The reopening was made possible through the com pany's receiving an order to supply a considerable portion of Portland's water pipe. The plant's output now is about 700 tons of pipe a month. San Francisco bankers are confident that business and financial conditions of the country are on the upgrade, ac cording to the announcement of Ralph Stacy, president of the National Bank of Tacoma, who returned recently from a trip to California, There is more money in California than there 4s a demand for it for legitimate business and enterprises, according to Mr. Stacy. He is convinced that the Pacific North west will witness much better times from this time on. Charles S. Hamlin, Governor of the Federal Reserve Board, has left New York on a tour of inspection of re serve banks. He will be met in San Francisco by A. C. Miller, a member of the. board. Portland bankers will in vite Mr. Hamlin and Mr. Miller to come here for the purpose of conferring on the subject of establishing a branch reserve bank in Portland. Figures specially compiled by the Journal of Commerce show that in April a total of $178,104,466 will be paid to investors, representing dividends and interest disbursements. This com pares with $180,413,648 last year. Next month the sum of $85,104,466 will be distributed among the stockholders in tn way of dividends, or a decrease of $9,609,082. This is due to the fact that a number of corporations have either reduced or omitted dividends. Interest payments will approximate $93,000,000, compared with $85,800,000, the increase representing new bond and note issues. How American securities are viewed by investors on the other side of the Atlantic Ocean, is indicated through the death recently of Earl Roberts, field marshal of the British army. Thirty per cent of the personal prop erty left by him was in Minnesota, U. S. A. His will shows that he owned 729 shares of Great Northern Railway stock, valued at $79,096. and 849 shares of Great Northern Iron Ore stock, ap praised at $25,000. The total personal property is given at $375,697. Most of the personal property, the will shows. was derived from the 100,000 presented to him by Great Britain for his services in the Boer War. WOOL BEGINS TO GOME FIVE TOWSfS SEND NEARLY 100,000 POUNDS TO PORTLAND. J. W. treat h. Back From Growers' Con vention at Baker, Says Market Here Offers Big Advantages. Five towns in Oregon and Washing ton sent close to 100,000 pounds of mixed wool to the Portland market Saturday, according to information last night given by J. W.. Creath, a prominent commission man, who re turned yesterday from Baker, Or., where he attended the wool growers' convention. The towns were Hanford, Alderdale and Toppenish, Wash., and Rufus and Rock Creek in Oregon. The Portland Wool Warehuose Com pany here will handle the wool, which is the first big output from these places this year. William Tollman, of Baker, one of the largest Eastern Oregon livestock growers, and also prominent in finan cial circles there, has identified him self with the Portland Wool Ware house Company and is of the opinion that it is one of the biggest proposi tions that has established headquarters in Oregon for many years. "The fact that the Eastern Oregon wool growers indorsed Portland as the most available wool market is another instance of the feeling in the West against Eastern buyora," said Mr. Creath. "This year, with Portland as a waterway market, with cheaper transporation rates to a much nearer buyer, the grower can eliminate the' middleman and ship his wool direct t" a home market, thereby getting better prices, which may run from 22 to 27 cents a pound or even higher. "The Hanford wool shipped in here tofore cot the arrower $1 per l'W pounds. When ths Celllo Canal in opened, the same grower can ship his wool on boats to Portland for 45 cents a 100 pounds." Itoseburg Growers Favor Cannery. ROSEBURG, Or., April 4. (Special.) The first move for a co-operative cannery was launched here today, when the ranchers and fruitgrowers met at the Commercial Club and talked over the project. L. P. Harrington, who is interested In the Crtxwell can nery, made a brief address. It was the consensus of opinion that a cannery should be maintained here to care for the fruit products which are not shipped to foreign markets In their raw state. CASTOR I A I Tot Infants and Children. Th; Kind You Hare AIwz;s Bcsght Boar the EUgaAtor NOTE ISSUE IS POSTPONED Reserve Banks Not to Issue on Gov ernment Bonds Until December. Advices have been received in Port land that Government officials have decided that the Federal reserve may not issue Federal reserve notes based upon Government bonds until Decem ber of this year, which will be two years after the date of the passage of the Federal reserve act. It was the general expectation that when the reserve banks Invested their Idle funds n Government bonds they I reserve bank notes on them. Just as circulation is now being issued by the National banks, when the demands for money would begin to grow during the Summer and especially to meet the sit uation during the moving of crops. On account of the indefinite provisions of the Federal reserve act on the question of redemptions, it is apparent that this will not be permitted. The act says that in two years after the passage of the act the National banks may retire their circulation and sell their Government bonds, which are now deposited with the Treasury, to secure such circulation. In another section of the act it is stated that the reserve banks may issue circulation by the deposit of Government bonds which they own. The question has been raised as to whether the reserve banks may issue circulation on the basis of Government bonds owned. The opinion has been expressed by officials at Washington that the reserve banks might issue technically such circula tion at the present time, but it would be best for the Federal Reserve Board not to permit them to do it until the end of the two-year limit, because such was the clear intent of the act. The Alhambra Theater. 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