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About Morning Oregonian. (Portland, Or.) 1861-1937 | View Entire Issue (April 12, 1915)
THE JIORXiyG OREGONIAN. MONDAY, APBH. 12, 1915. 8 CLEARING IS NOTED N FINANCIAL SKIES CREDIT MEN'S BRANCH DAILY PROVES VALUE Higher Business Efficiency and Protection Against Fraud Accomplished While Many Trade Laws Show Prints of Authorship. Impetus in Stock Trading Re garded as Harbinger of Re turning Confidence. CAPITAL SEEKING OUTLET BT B. K. KNAPPt . THB Portland Association of Credit Men, organized 19 years ago as a branch of the National Association of Credit Men, has become one of the city's strongest commercial organiza tions, bavins' a membership of 225 wholesalers, bankers and manufactur ers. The National association has grown to a membership of 20,000 and is the largest organization of its kind in the world, having branches In every Jobbing center. These credit men s associations stana for evertyhing that makes for higher efficiency of the Individual credit man and for improved credit conditions, for safe and sound credit and to guara against imposition and fraud. They are not profit-earning, hold no nign jintts. null off no vaudeville stunts. Their weekly and monthly meetings are de voted to uniting credit men lor me nrotection -of mercantile credit, to pro- miilB-at the best ideas regarding the Signs of returning connaence in ine proper handling or credits ana couec business world are multiplying at such I tions. rate that, in the belief of financial I Many Lnn Show Autnomnip. i. he mnnv dsvi before i Through committee work they have commercial and Industrial activity will caused fire prevention to be taken up be on a normal basis. The most im- -n VuUc Schools; they hive portant factor that has contributed to placed the bulk saies law on the stat- a reassuring reeling tnrougnoui mo i ute books of every state, improvea me Favorable Trade Balance Among signals or Prosperity and Ed- ward Cooklngham Points to Eesult When War Ends. country was the sudden renewal oi activity In the financial district of New Tork. Up to a week or two ago the Wall street situation had been almost Inactive, compared with conditions ex isting before the beginning or tne war, and financing of the business of the country was slow and uncertain, An indication of the activity in the New Tork Stock Exchange is noted in the past two days' trading. On Friday transactions aggregated nearly 1,300,000 shares, making it the most noteworthy of anv day since July SO of last year. In two hours Saturday morning the exchange recorded sales totaling 800, 000 shares. Due to several favorable factors the securities market is getting stronger and general public interest seems to be expanding. The statement of the Treas ury Department, bearing out unofficial advices of a general business and in dustrial improvement throughout the country, and the persistent circulating of peace rumors no doubt were strong Influences. The balance of trade favor of the United States aggregating $600,000,000 in the past four months has bad a stimulating effect. The fear of wholesale European liquidation of American securities has passed and the absorption of all securities offered Is being taken care of easily, "The strong movement In the New Tork financial district is an Indication of returning confidence," said Edward Cookingham, vice-president of the Ladd ac Tilton Bank, last night. "The heavy trading on the exchange is the most encouraging feature I have noted in several months. It Indicates that per sons desiring to invest are now ready to make investments. Apparently they have regained confidence. At present this country is absorbing about $1,000.- 000 worth of foreign securities daily. Prices are attractive and the funds that have been inactive are being put Into use. At the rate we are absorbing se curitles held by Europeans it will not be long before bur obligations to Eu rope will be wiped out, and with the large trade balance now In our favor, this country will be In better condition than ever. When the war is over the United States will owe Europe less than it has in a generation, and Europe will be & large debtor to us for the first time In history: bankruptcy law and passed many other laws of vast benefit to trade ana com merce: they have caused -the mercan tile agency service to be Improved and have circulated large Quantities of lit erature of great benefit to the whole saler in the extension of credit and to the retailer in helping him to "avoid the rocks." They also have carried out tremendous work of commercial co operation and advancement that cannot be measured in money. Every business man-in the city has been benefited di rectlv or Indirectly by this work and in direct ratio to the extent he has in terested himself in it. Elwood Drake, of the J. tiu Company, and E. G. Leihy. of KIu-mauer-Frank Drug Company, are presi dent and secretary, respectively, of the Portland Association of Credit Men and are, wtih five other directors, untiring in their efforts to make the Portland association one of the best in the world and a credit to the city and its great commercial interests. Credit Reports Extensive. The most Important work under taken by the association is its adjustment bureau. a corporation organized to carry on the prac tical work of handling credit re- h if. ;i. . i if T il B. K. Knapp, Manager of Ad justment Bureau of Portland Association of Credit Men, !fF-ggcjrirs-rrrtr-TTT?'T7"'';iTri MPS m $4 r INmu!: porting, collections and caring for In solvent estates. The bureau has a membership of 138, a payroll of 25 em ployes, issues more than 1000 credit reports, monthly, or 40 each day, is caring for hundreds of involved es tates, and although less than two years old is doing a businsss of mora than $1000 per day for its members. Through the bureau's handling of In volved estates and avoiding bankrupt cies, dividends to creditors are about three times those in bankruptcy and the cost is about half to the creditor. This bureau is affiliated wtih more than 60 others of the same nature in Jobbing centers and through co-operation gives Its members the highest degree oi service. Jt puts the collection and dis semination of credit , information ai rectly under the credit man's manage ment .enables him to get the most im portant information when he wants it, enables him to settle the Insolvent es tate at minimum cost and maximum dividend, and collect his delinquent ac counts in the most satisfactory manner yet devised. Marked Increase in Trade Predicted by Banker. Redemption of Paper Issued Under Aldrlcn - Vreelnnd Act Considered Imprnalve Evidence of Business Stability. BANK LETTER OPTIMISTIC Merchants' National Reviews Busi ness Conditions on Coast. In its monthly review of general business conditions the . April trade letter issued by the Merchants' Na tional Bank Is optimistic in tone. Dis cussing some features of the present situation the review says: "The points that make for optimism In the present situation also include the fact that the farming community Is prosperous and that if crop condi tions continue good we have very little to fear for the future. This country is more nearly independent than any other country and the United States is in the best possible position to take advantage of all favorable oppor tunities. This should be a period of constructive reorganization for the Northwestern and Pacific Coast sec tions of the country. Among the things we can do for ourselves Is to engage more generally In the manufacture of all forms of wood products. We can develop the fishing possibilities of our own coast and take a larger com mercial and financial interest in the Alaska fishing trade. We can estab lish plants tor the manufacture of lines of woolens. We can go ahead and develop our facilities for diatri bution whether it be by rail, water or auto truck. The co-operative move ments and selling organizations in the fruit Industry must be encouraged. There is need for plants for evapora tion and preservation of fruits that we may not lose the real basis of our profit and control of this industry. "Railroad earnings are showing an improvement both from the point of gross revenue and net earnings, the latter being due principally to in creased economies. In Individual cases certain roads are making liberal pur chases but as a general rule this con dition does not hold. They are able to finance many of their short time obli gations but little or nothing has been done in financing for betterments and new work. The number of Idle cars is still large, although an improvement is expected in the April 1 report, "In the building line it is believed March will show a nice Improvement over the preceding month. The lum ber business remains about the same, due to the fact that water transporta tion is hard to get and rates are un usually high. The feeling toward the lumber business in general is better. In the textiles the factories are mod erately active but the shoe business, v except for the war contracts, has suf fered a considerable falling off. "The number of commercial failures for the first four weeks of March, while not so high as for either January or February, indicate that the liquida tion of a great many concerns Is In progress, and on a much greater scale than last year at this time." BT E. H. SENSENICH. Cashier of Northwestern National Bank. THE manner In which the emer gency currency issued under the Aldrlch-Vreeland Act has been handled is incontrovertible evidence of the re markably strong financial situation in this country. This currency was issued against the pledge of commercial paper and other acceptable securities and was an extraordinary grant of credit to the National banks in this country at a time of stress created by the terrific shock of the anouncement of the outbreak of the war. The first Issue of the curency was made early in August of last year; the airerretrate amount issued was $384,482,- C25 and the highest amount outstand ing at any one time was $368,616,990 on October 25. On the last day of the year the amount outstanding had Deen reduced to $160,000,000 and since then the balanco has been rapidly retired until today there is In circulation scarcely more than $10,000,000, all of which will likely be redeemed wnnin few weeks. Eioent nossiblv in the cotton sec tions of the South, practically none of this emergency currency has been re tired by resort to redlscounting under the Federal reserve system. Early last Fall, the fi'iancial tituation in the South was of a meat serious character, npArlv aonroaching general bank- nratcv. but the cotton market has been far more active than was then expected and the tremendous move mc it in Its premier crop has within a few months about brought back tne finances of the Southland to tneir normal state. Not only have the banks of the country been able to retire since the latter nart of October the huge amount of emergency currency then outstand ing, and a large amount of clearing houses' certificates issued by the Clearing House Associations of a num ber of the Eastern cities, but they have built up reserves against de posits far In excess of the amounts re quired. For the week ending Saturday, April 3. the member banks in the New Tork Clearing House Association alone re ported excessive reserves amounting to nearly $150,000,000. All over the country deposits in the banks seem to be on the increase, and in many cases banks are reporting the highest de posits in their history. The net de posits of the National City Bank .of New Tork passed, the other day. the $200,000,000 mark, which is the record for this country. The present gross deposits of this bank are considerably in excess of the total resources of the 12 Federal reserve banks. In considering the financial situa tion of the United States, we must not overlook the tremendous foreign trade balances in our favor, nor the great potential loaning power of the Federal reserve banks which will make available In times of need hun dreds of milions of credit. The enor mous amount of credit facilities now available, but unused and the conse quent low interest rates are a great temptation to the business world, and sooner or later, a marked Increase in business activity will result unless, indeed. Old Man Mars gets too wild or plays an extra inning game. Finance and Industry GEORGE A. HARTMAN. JR, cashier of the First National Bank of Pen dleton, returned home yesterday after - -w Avn' vfnlt At the home of his CLEARINGS ARE $1 1.376,192 G. A. Hartman. Sr., of 753 Han- "' hvp ni i w v i ,w w, w. i Mr Hartman savs that crop conditions in Umatilla County are excellent and business generally Is sat isfactory. H. Hirschberg. president of the Inde pendence National Bank, Independence, Or., is at the Good Samaritan Hospital, suffering from typhoid fever. The National City Bank, of New York, opened Its branch bank at Rio de Jane iro. Brazil. April 5. This is the second branch of the National City Bank to be established in South America, the one at Buenos Ayres already being in oper ation. W. D. Christen sen. cashier of the First National Bank at Stevenson. Wash., was a- visitor in Portland last week. Mr. Christensen said general business activity in Skamania County Is improving. John A. Keating, president of the Lumbermen's Trust Company, is In Van couver a. c., on business connected Portland Banks Do More Business Than Those of Seattle. k Portland bank clearings for three weeks, from March 27 to April 10. to taled $34,632,085, as compared with $31,622,805 at Seattle. Portland's lead for the period being $3,010,278. Clearances at Portland last week ag gregated $11,376,192. and at Seattle they were $10,856,180. Tacoma's clear ings for the week were $1.887,177.. Clearings at Portland. Seattle and Tacoma for the past week and corre sponding week In five previous years were: ?f15... 1914. .. J1S. .. JV12. .. luio. . . Portland. . .$ll.S7fl.l!i2 . . 14.TOt.3:;S le.Stin.ftsi .. 13.WS.i40 .. 11.3tt,5a Seattle. sio.ssa.iso i2.?.n.a;4 1S.14S.S61 12.0O,l"- 14.711, oe" Tacoma. J1.SS7.177 S.175,SSt 2.S52.SS7 4,7SS,JSS 0,138,717 with his company. Homer I Boyd, Seattle reDresentatlve of the company, was in Portland on a short business trio last week. L. D. Compton, vice-president of the Financier Publishing Company, of New York and Pacific Coast representative of the company, was in Portland last week from San Francisco. He has been on his annual tour to the East and re turned bv waF of Seattle and Portland, Plans have been completed for the establishment of a new banking insti tution at Marshfleld. It will be known as the Scandinavian-American Bank. R. Bugge, who organized the bank, was in Portland last week and purchased fix tures. It is expected that the bank will be opened before the close of the present month. R. Lea Barnes, vice-president of the United States National Bank, has gone to San Francisco on a business and pleasure trip. D. H. Moss, vice-president of the First National Bank of-Seattle, was among the visiting bankers in Portland last week. Nine National banks were opened and authorized to do business in March, ac cording to announcement of Controller of the Currency Williams. These banks have a total capital of $280,000. There are now 7606 National banks in opera tion. with an aggregate capital of $1,075,359,175. Work has been started on the can ning plant of Libby, McNeil & Libby at The Dalles, and special efforts will be made to have the cannery ready in time to handle this year's cherry crop. The plant will be among the. most modern on the Pacific Coast. It Is expected that between 300 and 400 men, women and children will be employed at the nlant this year. A meeting of Importance to bankers of the Pacific Coast will be held In San Francisco May 25 to 27, when questions Involving the workings of the Federal reserve system will De aiscussea. ii.cn nttivM of the Federal Reserve -Ftnir Commission, as well as the dlrec tors of the reserve bank at San Fran cisco, are expected to be present to give a full explanation of the details of the svstem. Several fortiana Bann ers are planning to attend the conven inniinr to figures submitted to TJrooiripnt Wilson bv Secretary of Com merce Redfleld. the trade balance for the four months from November SO to April 1 was approximately $600,000,000. in mnkinz- his report of the foreign trade situation during December, Janu ary. February and March, the Secretary says that there were no signs of this commerce falling off. He points out that when the war is over tne united States will owe Europe less than it has owed In a generation, and Europe will be a large debtor to this country tor the first time in history. Edward Cookingham, vice-president of the Ladd & Tilton Bank, has re turned from a month's trip to Califor nia. He said that tourists from all parts of the United States are begin ning to arrive in large numbers to visit the expositions at San Diego and San Francisco. As a consequence busi ness in the California cities is improv ing and is now in fairly good condition. Mr. Cookingham believes that a large proportion of the visitors to the expo sitions will visit the Northwest and Portland will be benefited materially by the large tourist travel. A foreign credit conference is to De inaugurated by the National Associa tion of Credit Men in conjunction with the New York association. The pur pose of the conference is the study of conditions in various foreign countries, with particular regard to facts concern ing credit extension. The decision to organize such a conference was reached at a recent meeting, to which were in vited a number of bankers and export ers who have had experience in foreign trade. The discussion centered chiefly in trade opportunities In South Ameri can countries, where the facilities for obtaining credit information, it was pointed out, are very poor at the pres ent time. VISIT HERE IS POSTPONED C. S. Hamlin Meets San Francisco Beserve Bank Members. Charles S. Hamlin, of Washington. D. C, in charge of the Federal reserve banking system. Is in San Francisco conferring with the directors of the re serve bank there. Mr. Hamlin had planned to visit Portland to take up the Question of establishing a orancn bank here, but illness has caused him to forego the trip at present. Discuss ing the functions of the reserve system Mr. Hamlin is quoted as saying: 'Much has been said about the Fed eral reserve banks. Some claim that they are purely emergency banks, while others seera to feel that they are ordi nary commercial banks which should at all times compete with the member s? c ; if ,s Tn .wsWSMUl S 1 S3 was SI : is m rja tL-, V. - 3 Prisoners of Habit America is the most extrava gant country on the globe. It is filled with men who make big salaries and spend them. What do they profit? They accustom themselves to lux ury; shackle themselves in the :hains of extravagance. And with appalling regularity they spend old age in want. An account at this bank be gets economy. Economy as sures independence. Begin to day. It is easier to forego a luxury now than to lack a necessity later. Northwestern National Bank PORTLAND, OREGON banks. Neither of these extremes, how ever, represents the real functions of the Federal reserve banks. "Their duty is not alone to meet emergencies, but, so far as possible, to prevent emergencies from arising, and while ordinarily they do not and are not intended to compete with commer cial banks, yet occasions may. arise where such competition, through the exercise of their open market powers, will be necessary for the protection of the people of the United States. "It is often said that the Federal re serve banks are bankers' banks, but this is true only to the extent that they deal primarily with the member banks, Their true function, however, is to pro tect the interests of the people, acting through the banks primarily, but. when ever necessary, acting outside of the banks." LOANS LOW IN PRICE EASTERN CORPORATIONS HAVE COIN TO LEND TO FARMERS. F. R. Cook, Manager of Mortgage Firm, Says Western Oregon Men Are Missing Opportunity. "A plentiful supply of low-priced money for loans on Improved farms in the Willamette Valley is a condition which has not long existed and which our farmers are not quick to take ad vantage of," said F. R. Cook, manager of the Commerce Safe Deposit & Mort gage Comipany. "The withdrawal of British and Dutch funds, occasioned by tho-war, has been offset largely by tha offering of money by Eastern lneur ance and loan corporations at rates lower than those formerly in effect 'These funds, however, come for use only on wJl-improved properties, and In amounts which some Valley farmers, with their extravagajit ideas of land values, sometimes think inadequate. The difference in point of view Is tha the farmer values his land at what he thinks he might be able to sell it for. while the lender inquires what the. land is producing, and bases his value large ly upon the annual crop returns. This is the basis to which we must all come eventually in determining farm land values, and. the sooner It Is recognized the sooner will such values become stable. 'At present there is little demand for farm loans, except to refund outstand in cr mortefures. Gradually our Valley farmers will come to realize that the profit oji fat cattle, or the returns from a dairy herd will pile up much faster than interest and that a moderate amount o borrowed money invested in livestock and the proper equipment to care for livestock is a money-making operation, especially under the present favorable conditions." JOHN BARRETT APPEALS Financiers Urged to Take Interest in ' Pan-American Conference. John Barrett, formerly of Portland, who is now director-general of the Pan American Union, is appealing to finan ciers and business men throughout the country to take an active interest in the Pan-American financial conference which is to be held in Washington, D. C, during the week of May 24. In a re cent address in New York Mr. Barrett said: The conference called by the Secre tary of the Treasury bids fair to be the most important International confer ence of a business or financial character which has ever been held in the United States. It certainly gives indications of being the most Important Pan-American gathering which has ever assem bled in this country since the first great Pan-American conference held in 1889. "The principal questions which may come -up for discussion may include: The practical betterment of banking and financial relations among the American republics, the improvement of steam ship transportation facilities, and the advancement of commercial intercourse as effected by banking and transporta tion facilities. GUARANTEE PLAN DEVISED Attorney-General Has Scheme That Does Not Require Legislation. Portland bankers have been advised that Attorney-General Gregory has just approved a plan for guarantee of National bank deposits which does not require new legislation and does not threaten DS.nKs, conducted on souaa lines, with payment of losses Incurred through bad banking in other institutions. The plan was devised by Comptroller of Currency Williams. In substance, it provides that National banks wMch desire to do so may have their ie- posits guaranteed by a guaranty com pany. The Attorney-General holes inat Reasons Why You Should Have a Bank Account Your payments are systematized; loss of money by theft or carelessness is prevented; you always have the right change; each check shows date, amount and payee; paid check is a positive re ceipt; the bank gratuitously assists you to keep your books; merchants prefer that you pay by check; checks are clean, safe and convenient; it adds to your business prestige. ' . Let us open, an account for you today. lumbermens National Bank Fifth and Stark & National hank can pay a premium to a g-uaraivty company, his opinion be ing based on the section oi tne uaun. lam mhlnh authorizes banks to taka precautions to protect their depositors. Full details or una picm avo hoi. uwch given out. - CREDIT REPORTS TO BE TOPIC! Association Wednesday to near Talks by City Auditor. Th next monthly meeting of the Croflit Men' will be at the Multnomah Hotel Wednesday night, April 21. A copy of an actual Dun report, emDoay ing a signed statement, will be at each plate and after dinner this will be dis cussed and reasons brought out why credit should or should not be granted on the basis of the report The speakers will be A. L. Barbur, City Auditor, and Deputy Auditor Grutze, who will address the meeting on "The Credit of Our City." The meet ings are open to the public Tuesday, April 20, the representatives of the local association will go to Ta coma to attend a convention of Oregon and Washington credit men. Including the associations of Portland, Tacoma, Seattle, Spokane, Kverett Bellingham and Hoqulam. June 15 they will at tend the national convention at Salt Lake City. Wheat Condition Ixwer. According to the crop reporting board of the bureau of crop estimates, The San Francisco Fair United fitatea Department of Agricul ture, the average oondrltlon of Winter wheat on April 1 wae 88.8 per cent of normal as against 05. 6 per cent on April 1, 1914. and 1. on April 1. 1913. The average condition for the last 10 years on that date wae 87. f. The acre age planted, as estimated last Decem ber, was 1 1.1 per cent larger than the acreage planll In the prerxllns: year. Will be visited by many Portland people. Travelers' Checks which this bank issues afford the best possible means of carrying funds when traveling. Cashed by banks, hotels, railroads and stores without trouble of identification. The United States National Bank Third and Oak Streets, Portland, Or. . Capital and Surplus $2,000,000.00 We have Eastern Insurance Company funds, at low rates, for loans on Improved Farms AS WELL AS Inside Business Property ALSO MONEY FOR Residence Loans Commerce Safe Deposit and Mortgage Co. 91 Third St, Cham, of Con. The First National Bank Fifth and Morrison Streets Capital and Surplus $3,500,000 n every department of banking we are prepared to serve the public acceptably. WHEN TRAVELING USE TRAVELERS CHECKS The most convenient way of carrying funds. Cashed by hotels, railways, stores, banks, etc. Call, write or phone for particulars. MERCHANTS NATIONAL BANK A Commercial Bank With Savings Department Founded 1886 Washington and Fourth Streets The Canadian Bank of Commerce HEAD OFFICE Toronto, Canada. Established 1867. A general banking: business transacted. Interest paid on time deposits. Commercial Letters of Credit iMued. Exchange on London, ICngiaad. Itonaht and Sold. PORTLAND BRANCH, Corner Second and Stark Sts. F. C. MALPAS, Manager. TRAVELERS' nl'IDK. DALLES-COLUMBIA I-IXE. Steamer State cf Washington Lvi Taylor-it. dork dailT except Sunday, 11 p. M. for Th Dallea and way landlnaa, carrying freight and paaaeng-ara, Raiurnlna. leaves The Dallea dally. 12 noon, exo.pt Monday, Tel. Main 613. Fare II. berths cua. American-Hawaiian Steamship Co. "The Panama Canal Line" EXPRESS FREIGHT SEKV1CB Between Portland. New York. Bosten. Xorfolk. V a., and Charleston. For Information as to Itales. baUlnaa Cta. I7 Siark Street. Call on or Address D. KENNEDY. Ax-rat, Portland. Oa, Revised Edition Descriptive Circular on Inspiration Consolidated Copper Co. Will be ready for distribution April 12th May be had on application Eugene!McyerJr.& Co. " 14 Wall Street - - - New York City San Francisco LOS ANGELES AND SAN DIEGO S. S. YUCATAN Sails Wednesday, April 14, at P. M. NORTH PACIFIC STEAMSHIP CO. Ticket Office Freight Office. lit A d Bt. I Font Sorthrup Ht. Main UK, A MM I Maia exu. A Hit S. S. ROSE CITY SAILS IA.K, APRIL It SAN FRANCISCO LOS ANGELES The Baa Franclare Portland . 8. Cel Third and Washington Hta. (with O.-W. K. a N. Co.). lei. Marshall 4iO0. A alxl. AUSTRALIA NEW ZEALAND AND SOUTH SEAS. Regular, through sailing tor Bydn.y via Tahiti and Wellington from ban Francisco, April 31. May 29, June J J, and ovary it cays. Fend for psmphlet. Union Steamship Co., of New Zealand, Ltd. Office e? Market street, Saa araociaoo, or local S. o. and H K. agents. COOS BAY LINE Steamer Breakwater Salla from Alaawarth Ooek, Portland, S A. ai. Friday. Freight aad Ticket Office, Alnanorth Dock, Phunea Mala StMJU. A-iaOi. City Ticket Office. SO Ota St. Phones Marshall 4.K0, A-olSl. rOBTUAD ex COOS BAX a, HUM