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About Morning Oregonian. (Portland, Or.) 1861-1937 | View Entire Issue (Aug. 16, 1915)
TTTE MOn?fTXO OTIEGOXTATT. MONDAY, AUGUST t6. 1915. 9 EXPENSE BIG ITEM Federal Reserve Bank Operat ing Cost Near Earnings. UPKEEP ITEM GROWS LESS 6aa rratK-fvo Il.uirt Bank Ha Eararna Far RrJow Average of That for Entree STBteo Ke port Cvtcti 7 13 Month. Wnet the Federal reeerve banks bar root and what tner hae wrtM U Jat avalUMe In a detailed roport ta enseal by the Federal rwn board eoT rtDC th oporauona from Noftmbr . too data oa which Uio kanka opened, ta tse and of th floral year. Juno 1. a prtod af aa and a hair momna TTiaro ta aleo laclodad a ntatement of t!i oralljntnarr coot of oraaimatloo. puant of th rport baa bn pra parae) with especial r.ialioo to lb op ratioaa of the Twelfth) district baa at aa Francisco. Tha total paid up casual of th Feaiaral bank la 1 :.. Tae u nr1co bank, wits tea capital of IS.tU.aaa. raaaa fourth la slaav Tha eai-otr.e-s ef tha IS baaka aaTrr-m-mtm mini Can Francisco was nlith In rank with IjJ.IlT to Its Credit. Tha amines for tha month of Jone aloaa for the s-rsteaa wr llll.nr. ancj for rruidjra I'.l.lZi. maklnsT It ft in Mnk in thla r a pact. Th eirees earninc ever eipendlturee of tha 1J baaka lor th sereo and a naif It t fnttfrUs to not th substantial re- I durtloa mad la everdralia 4 arm 9- iba pa I aaar Th. rra-drafta la tl kaBBS bar dai 1 lyi it lia na 4i. or U par cast; srarts la National ftanaa neve 1 : o I a. 7 nr as nac oast. It appear that your afforta t Itmlaat the vii bar aot baaa la aia. aad tbla of ric ajlll raatlnua la -prata ""a yen t secure further radoctloaa, A National Baa Cxamlnar. wrtUn from Dal. a. Teaaa, la a iaiier oaiea J -1 la runner caaaoctloa with th awerdreft practice, ta edviea teat 1 Bar Just com ptatad a trip f aa.eral weeks la ny dis trict aad found aalr oa bank a lib en Tar- draft aad that bank bad aa aceouat f re cant data far tar cents. It ta aa u Doom mo o to find a bask aoer arltb everdrarte aa It aa ta th paat ta find a wltbeiat them. "Sam of ta bankers a bo objected ai BTrsaameU ta dlaroatlao tb prmeuca ara aaw nai.ax tb siatsiosnt taat It a tba ban tome that eou.d baa happanad la that raapact. Tba latlar aa seal out ay you rw latins thereto ee of aatold valea In attml aauas tba practice aad baa baaa raaortao ta la a majority of cam wbara tha beet raaulla baaa bao aetalnad." prior ta tb proeauleaUoa br th Con trailer f tb Currency of his rdar aa tb It IS banks for th lontne waa 1.T I. RiaraM eWdoe-tloa Mad. Tha currant pnjs for tKe Ttm icnntta ll.UT. tao rranclsco apot ITJ.J and waa fourth from tha lop Tor Juna ma aapana rrslam totalad t:3.4TJ aod IT43 for ian rranetaco. Tha Twelfth dUtrict bank aTtdnttr-mad a naT wuctiou la its xpnaa for th ilummar montba, aa oa thla ahowina; It la tha lowt but on ef tho 12 for Juna. In .atmnt of prrcantaaaa. th TTMlltura for lh ntlr system war 11 par rnt of th limlnft, bat for th Tw!fth rtistnrt bank tha earnings ttI4 but Tt i of th currant exponaea. Th banka at New York City. Chlcaan. Richmond. Atlanta and Iallas wars lia ef th IS to make a showlnsr af aarn Inzs In aca of pnditura Ths bt rport waa mad by Rirhmond with arnlnr totsltn lllT.2i anj xpensea. Sil.ttl. Th faorabla show. In mad by tha Southern banka wss rtu to th cotton crop situation. A dmand was mad on them to diarount cotton bill when thr was nothlnt f a similar nalur in any other part of tha country. Tha current expanses of th Can rranctaro bank In Juna war but tl per cent of tb aratnir. SaUrtea Chief Ksaaraa I tew. Tha principal Item of axpena was for bank officer, aalartaa. For th antlra syetem this ltm totaled II70.. SIT and for San Francisco. I2S.0M. It beins; the fourth blahcat from this point of view. Tho second principal expense waa fhr th clerical st.tff This BFvrecated for th Tfiam f:.:. with I1S.4U for Fan FTaaclsco, th fifth blht la this recard. Kental of banking qutrter was ins third hiaheet axpenee. ?w Tora city Is In th lad with this Item. It spent f:JJ In earan snonih or at tba rat of It 50 a yar. Chlcas;o waa next with or at th rat of IJJ.SOS a year, and San FTanclaro third with 1 SSO. th annual rat tlnc (ll.sto. Oraanlxatlos expenaea for th en ttr tem totald 1T.:J. For Han Francisco It was IJ4 :. it belna; flftt In tha list In this respect. For equipment th realonal bank bar spent IM1. Sa Francisco's ahar was 4i. Only on a district bank spent less oa this account, jlssas Pel lie) Doaated. Fees arjrettln iZfil wr paid to lainbtn of th adrisory councils of the various districts, except In the of New York. Richmond. 1 Loots and an Franctaco. At thee point th . counsellor donated their services. Th total fe raid to d'rectora wr !. T7 with San Francisco rankin fourth with $Jll. For travellns- expenaea the director wer palj tld.Slt. with San -ranca spendln th least amount. Th per diem allowance for di rectors accrraatad lt.i:. with tan Francisco payin tha smallest amount, file. The sarnlnc of the banks were de Ttvsd principally from rodlscountlnt commercial paper. For the seven and a half months the entire system earned In tbla way IS4I.ST. ran Francisco earned by rediscounts lll.'l. rsnkin fifth tn this rard Th Tlfth dis tract bank earned ! on aeceptanrea, 14J3I en talted Mtates bonds, and 1191 ri municipal warranta. Inveetmenta In warranta waa th second principal Item In th arninra ef th baaka. tba total rfrtln: i:?.Tia. PEACE PLAN IS DEVISED coxditiov nr federal re- SCHtK AT III riu.tico. SA.V FRANCISCO. Aur. 14. (Special.) For Its th business week, ended Aua-ust IS. the Fed eral Rarve Bank of 8aa Fraa claco rcportsd aa follows: Gold cola aad fold cer- 1 1 f I c a t a la own vaults t I lllrOO la old-satUtnBt fund 1.CJJ.4 la roid-r ad at p t la a e t aaa fund SI. 404 Lecal tender cotaa. s(l- ver. etc I.st Total lassi-aa .SSLse Commercial paper (ra- - discounts) 1.SM.000 Bank arceptaacea 4SS.00 United Stataa bonds... 1.001.000 Municipal warraata.... 1.1 & 4.0 00 'edcral reserve note held 1.0S4.000 All otbar resource.... 1.UT.00O TRADE CHANGE LIKE Acceptances Believed Way Free Cash Now Tied Up. BANKS MAKE BEGINNING Credit of Merchant to Stand More Severe Test and Opposition to Plan Expected, but Method la Thonfht to Help Finance. Total rasp ureas Liabilities. Capital paid la Deposits (not) , flt.Sli.000 t s.m.ooe ii.sij.ooo Total liabilities tll.SlS.O0t MraMnsdva. Federal rsrv notes received from Fed eral reserve afnt...t 3040,000 Federal reserve notes la hands of baaka... 1.014.000 Net Federal reserve notes outstandlns.... 1.004.000 Oold deposited with Fdral rarv ajrent to retire Federal re serve notes 3.040.000 Net asset account Fed eral reserve notes... 1.0J4.000 tnbioM af averlrafta. tba overdrafts ef th Natloaa! Baaka ot Texas exceeded thoa of any othrr eta'e la tbe Colon, amoontlns at tha tlrte ef tb Decern bar so. 1P14. call to ii.rm.Bb4. Tbe I'rerldeat ef a large National bank la Oklahoma, ander data of July SO. lli. rltra aa follews: fan but commead yea for your famous overdraft order and at tb earns time eau your attentive to the fact that, although aumbar of the bankers seemed to thlDk It imnoaaibla ta conform to the requirements of Tour order, many of tbe directors adoptad resolution favenng your oroer aaa oouotiaas aa a direct result or lbs same overoratta la banks In this country have been decreased. -On eeerv head I hear words or praise la reference to the order, wbara many months ao 1 beard criticism." Henry Clevra to Submit Method Ftrorxwa Financial Airenclea. to riry Clews, the eminent Now Tork banker and prealdent of th American Teac and Arbitration Lau. baa de vlsad a plan for reetonrf peace la Ku rop. which be propo. throuch thslr respectia financial arencle. to submit to ta European powara Ills plan, which is presented for seii aus consideration, is ss follows: narmarr te aell te rra Alaac-Lorra:ae f r aa annaa"ant of Ita real :oe aad retire from rraaca aad fa'slum. but to bae cna marrial stem l tb fUislaa seaport, waira ap.v.. davlared a free port; Ceraaaar te pea ever te tta.staaa te a moon t aoatred from Free? te raator He'S'.usa. tbe roloola te b ratord te Cenoaar te be t:laad's sd Jssea s saers coewaaalBse: Aastrta aad Italy te acrae hatwaea each etbee fir t t:raeat sad rd ta d e by the eter a Itoca. Cenetaattnerle te a free port te apoaea aaae. Tark.y t acqulaeca and Aaatrui and r6l te apaa ketoaa them alee to aettie taalr d.'farsara; eatabilsb a war d reart asie te aaforre lie daeraae by aa talamal-eaa. poltra force ef fie aerld" 1.111 carr aaa aaaa) f -ft-a aar-arlor te thee ef ear atile p.ar ra tbe srartd. Art tbe above aetion te pl.dse themeaUa tT a pM.e I last SO laer at laaet. aareetrg as 4atas- t a gamad theraby is reduce la r tretaa se-l uatiae I a peace tasis. atKI weu.d aamtt. dartr.a t.'iat period, ef fleir Ilqj.Jailrs taalr llaSilltle tncarred by tn war. Al tbaaa aallooe le ebllsace tbem aias t ajrk id uateo te maiciatn peaoa. o eela aaaacrat lli.mai;. but trousboot tbe world. I fael ulte ear that tha Vstted Stetae. Seat Artier aad Cblaa would g ad la j-n ta ta aosab:aatio for tb great ad asatase tbal wea:d aecra to tram be tbe eartais eeaaraac af pear prsaalllag for tb seat aara. OREGON BANKERS HELP OUT Practice of Fermttttnf- Overdrafts Beins; Placontlnaral. Efforts en the part of the controller f tbe currency te discontinue tbe prac tice of permlttlcaT overdrafts hare proved highly successful la th last I0W month, accordlnc to currant re porta. and th banka of Oregon. It seems, have had a prominent part la this connection 's, o. Sargent. Stat Puprlntadat of Basks, ta a rcent report to th ardaral Treasury Ee-rtm-al vrltta: BANK OBSERVES BIRTHDAY M. Ij. llol brook Advised of Celebra (ion by Bine ham In.otltation. M. K Holbrook. vice-president of th Merchants National Bank, baa lust been advised of the successful celebration of the Jith anniversary of the founding ot the private bank ot C t. uinsnam Co.. at Sedro-Woolley. Wash. As llr. Holbrook. with Charla E. Blnrham, or a-antsed th bank, he la especially In terested in Its welfare. It is several rears, however, since be bad any actlv connection with It. air. Holbrook re ceived an Invitation to attend, but was unable to do so owing to the absence on vacation of two of tha other officers ot the local bank- Front the accounts in the local press tha event waa made much or In North west Washlnrton. aad tha anniversary was recognised by teleTams of felici tation from bankers In all parts of th etate. In Its account of ths celebration one of the local papers says: Ob of th meet prised of th many per sonal talagrama sn laatars or congratulatiea as from M 1 rlolhrook. alre-preeldent of tha Marchaatt National Baa, of Cortland. Or. Maesrs. Holbrook Bad rllngham arar partaara la the aetan'tshment of the banking firm of C E. Bloahsm a Co.. at what as thaa haera as tb town ef Pedro, on th banks of tb Skagit Rlrrr. S3 years Be last il-ldar. Kevcral yeare after :be bank 1 established at Sedro. Mr. Holbrook found sq opportunity wbirb pl.ased him better, and la ths IntereenlBg yaers pmm worked te th top at me financial laaatr IB j-ortiaaa. TRUST COMPANIES IN PLAN New York, and Kansas City Concerns Iay Over 1 10,000 aa Member. Tbe formal entrance of the Broadway Trust Company of New York City Into Federal reserve system took place on Aucust S. when the Institution paid Into th New Tork Federal Reserve bank half of Ita subscription to the capital stock ef th reserve bank. The payment amounted ta about 174.000. The decision ef the Institution to Join tbe reserve system wss announced on June 10. by Frederic O. Lee, president of the trust company. The Fidelity Trust Company of Kan sas City also became a member of the reserve system on August S. when the institution paid over 160.000 as one-half ot ita subscription to tha capital stock of the Kansas City Federal Kaserv Bank. Tb Fidelity, which baa tb Iargt combined capital and surplus of any state Institution In group 10. la also tbe first state Institution in that dis trict to Join the reserve system. Ths trust company bss subscribed for 1200 share of th stock of tb reserve bank. Several Would Be Commissioner. TENPLETON. Or, Aug. U. (Special.) Action by the County Court looking to the appointment of a successor to tbe late 1L A. Waterman, of Hennis toa. one of the County Commissioners, probably will be taken within tbe next week. The names of several aspirants to th office have bean recommended to County Judg Marah. Among those mentioned are Louie Scholl, Jr of Echo. Justice of th Peace la that dis trict and formerly Mayor of .Echo: George Creasy, of Hsrmlston. and Jamea Nelson, of Nye. Potttofflce Iojepector-Maleei Audit. ll.VKSH FIELD. Or., Aug. It. (Spe rtaXV Inspector P. E. Wood, of the Postofflc Department. Is auditing th accounts of Postmaster Mark Pedersan. of Kaet Sid. Mr. Pdern baa bean postmaster at East Side for three years aod Is a one-armed man. Two year ago W. J. Laatoia, City Recorder, East Sid, also a man with but one arm. waa convicted of emboss ement and aentenced to aa tndetrmtnat term In th rJtat Penitentiary. "My busbasd aara bs dropped his aatcb a taw artr-ceV Ther Is no change In banking and business prattle to which the Federal Raaarv Board la giving more site aioo at thla time than to the Idea of making the trade acceptance popula Through ita publications and tbe publl SBDearanca of Its member It Is con stantly urging their use. Many Dene cent, far-reaching results, tosy will follow tbelr us. Th trade acceptance, a It la a signaled by the Federal Keaervs Board. is the draft or bin or excuana . by th seller of tb merchandise on the buyer of th goods and Indorsed with tha latter acceptance. It make the instrument virtually a note without interest which becomes du la a given time. Caatoan Cava as on Gaeratin Aa. The custom of giving and takln-r ac r.ntanrM ao common In Kurop. was oulte nrevalent In tb United Stat s-aneratlon or mora ago. but the prae tic fell Into disuse. It gave way to the usage of both buyer and sener Bur rowing money on bis individual note or the note of the firm or corpora Uon. Tbe dllferenc between the two transactions la generally distinguished by single name paper for the present custom of borrowing and double name paper for th trad acceptance or bill f exchange. In th Pacific Northwest trad acceotances are common In con nection with the sale ot lumber for domes tia purposes. Advantage Are Explained. Tb Federal reserve bank are offer ing Inducement to member banks to secure trade acceptances ana to reuia count such paper with them. They offer a lower rate of interest, equal to tt per cent profit for the bank, lor this clasa of rediscount Another advantage is to be found In the regulations which went Into effect July 14. The Board does not require a financial statement of th condition 01 borrowers whose notes are offered for rediscount at tha Federal reserve ban In sums of loss than 15 )J0. or one-tenth of the capital stock of tne company Eivlnic the paper. Thla regulation said to favor the trade acceptance. Two-name paper does not have to be secomoanled by financial statements when offered for rediscount. Both ex emptlons save tbe banks considerable trouble- Revenue (tasap Not Required. An additional Item in favor of the trade acceptance is that it need not bear tbe customary amount of revenu stamps thst must accompany ths ordi nary promissory not. Th object of tbe Federal Reserve Board Is reported to be in line with Its desire to create a large a volume of commercial paper, which shall rep resent actual trading transactions, as possible. The greatest possible use of commercial paper Is second in im portance only to the central Idea on which th reserve banks are founded, the first being the centralization of the banking resources of the country. It is the belief that commercial paper the form of asset that can most quickly be converted into cash and that as a bank reserve It rsnks next to gold Itself. It is the opinion of many bankers, too. that domestic and foreign trade acceptances are the most deMr- able cl.ias ot commercial paper that can be obtained. It is believed, therefore, that the reserve board will permanently con ttnue the practice of making preferen tial rates of Interest for trade accept ances. ITeiadle F-rewaemtly Met. While there are many concerna which hold a prejudice against borrowing on trade acceptances, principally due to tbe fact that they are used to being accommodated at the banks on their promissory notes. It is believed there will be little trouble In Inducing the larger houses of the coantry to adopt tne trade acceptance quite generally, The opposition. It Is said, will be principally on the part of the small Jobber and the retailer who will be asked to giva his note or accept the draft drawn ajcalnst blm by tbe whole sar. The prejudice against a change In a long accepted business practice will first have to be overcome, it Is declared. Th knowledge that an ac ceptance hears a definite dale of ma, urity. limited by the Federal rtum bank to 00 days; that it may be de posited with a bank as collateral, and sent for collection through tbe local bank. will, to many, not appear to be s liberal terms ef trading as tha In determinable, open book account. Credit fa Be Pat ta Test. Ther will b a tendency to break away from the wholesaler who Insists too urgently on the adoption of the practice and go to the concern which 111 continue tbe old practice. The merchant, large and small, it Is as serted, will hereafter realise that his credit standing will more thoroughly be put to the test and be subject more frequently to the scrutiny of tbe banker nd, business world In general. 11 noa-s that failure to pay a book ac count promptly Is known only to the concern with which he Is dealing and never aa serious to bis standing as to aiiow nia note at the bank to be come past due. Tbe banks themselves may be counted on. aside from the Inducement to tbem of a lower rate of interest in redls- countlng. to assist In making popular ne tuea 01 iraae acceptancea. Their se win give the bsnks a much better grasp of the credit standing of their customers and a more Intimate knowl edge of the class of patronage they njoy. Fa i lore Deelaaed Avoided. It Is also realised that the trade ac ceptance gives a wider margin of safety for a loan. Under a system of trade acceptances. It Is asserted, tbe S40.000.000 Claflin trade failure would ever have occurred.- The banks may also readily trace what becomes of the money when an acceptance is nald. Som bankers, however, are not enthu siastic over tbe plan, aa they say the trade acceptance will tend to reduce tb volume of borrowing done at th banka One objection urged against tbe trade acceptance is that It will demand more operations to complete a transaction than under the one-name system. Tbe purchaser of good who requires credit 111 nsve to accept arafts in all cases or give his note. Another criticism offered Is that tha seller must bear the brunt of the preju- nice against tne plan. For som time to come there will be danger that some business will go to the less exacting house. It will, therefore, b necessary for the banker and sailer to co-oper ate on this common problem if they da re in pracuc to prevail. Levral Baaka Make Besinalag. . rortland bankers have already be gun to take on domestic trad accep- ( tancea. Som of tbem recognized the change that was coming with the In ception of the Federal reserve system. They counsel first with the wholesaler who. In these times, ia getting a little slow in meeting bis obligations. Bis general credit may be perfectly sound, but It la discovered that be ha too large a proportion of his quick assets in aecounta receivable. When tha opportune time arrives the bank insists that the wholesaler shall take notes from his customers. When the seller .follows up the suggestion of the banker he finds there Is ' not so much opposition to overcome as he thought there would be. Of course, this plan. It Is understood. Is not exactly meeting the complete re quirements of trade acceptances, but It ia declared to be the next best thing, under the present circumstances. It Is also believed that it will be a short step between giving notes for accounts snd setting trad acceptances at the time the bill of goods is sold. Sesae Haee Cm perata. Borne of th largest wholesale houses In Portland, who have never until re cently given acceptances, are now co operating with tbe needs of manufac turers of limited capital ana giving bankable acceptances pending the com pletion of contracts, for Instance- It is said that if tn Dank tnem- selves believe it to be to their advan- tac to do so. paralleling the action of the Federal Reserve banks, they will offer a lower rate of interest to bor rowers who offer trade acceptances. It is anticipated that the greatest op position to tha movement will come from the country banker. An effort ts being mad to show him that he has a great many more opportunities to get trade acceptances and paper that Is eligible for rediscountlng purpose than be ordinarily believes be baa. WAR BIG TRADE 1 Continued Prosperity With Peace Is Predicted. MUNITION ORDERS HEAVY Heavy Purchases by United States Predicted by Henry Clews and Stimulus to Exports Is Expect ed With Advent of Peace. Trad Dlaeeaata Mar Be A bolls bed. Th trade acceptance. It la believed. wilt actively influence the present ex pensive practice of allowing cash dis counts, and per hap ultimately result in abolishing it. A committee or port land Jobbers, members of the Portland Association of Credit Man. la seeking a substitute plan for the giving of caah discounts. Th committee 1 consider ing the plan of offering discounts only to those who will glv trade accep tances and meet them promptly. It Is also believed the trad accep tanc will put a atop to an Insidious form of borrowing which la dangerous to all general creditors of a borrower. It Is the borrowing of money secretly against accounts on tbe books. Little of this form of borrowing Is thus far don in tbe Pacific Northwest, com pared with th large volume of such transactions in the Last. CeadlUoaa Often Nat Know. Tha dans-er of this sort of borrow, ing to th creditor of the concern and to the banks. It I asserted. 1 tnat tne condition of affairs of th concern Is never discovered until it Is too late. Tha accounts which are due tho mer chant, and th account receivable which appear on his books and In the statements mad to th commercial agencies, are found, when the day of reckoning comes, already to nave neon nleda-ed for money advanced. This prac tice is spreading to this section of the country. The chief value to tne Dusinea worta believed to be in the movement which recognize a more general, use of com mercial paper in tbe forms desired by th Federal Reserve Bank is that In the as-B-rezate it will make free. lor fur ther commercial operations, hundreds of thousands of dollars that are now tie! ud In book accounts and that should be at work furthering additional commercial operation. Tbe release of these funds, it Is asserted, would prove an Important factor In times of great business activity and equally so when payments tend to become slow. BANK STUDY PLAN GROWS Special Training Given for Work in South America. The National City Bank of New York inaugurated on August 1 a school wherein voune- men will be trained for efficient work in promoting tne service of tb bank In South America. The ew course, which will at first Include bout 20 omDloves. is an extension of the plan already In operation under the usnlces of the City BanK t-iuo. n is tated that th graduates of the course will be sent to the bank's branches at Buenos Aires. Montevideo, KIO oe anelr. Santos and Sao Paulo to act as foreign exchange and credit men or assistant managers of department Th course consists of special train na in the actual operation of the bank departments, particularly tbe foreign exchange, credit, loan and securities departments, and in supplementary lectures and lessons. The tesching of languages Is to be aided by "language tables" at wblcb employea who wish to study French, Spanish or Portuguese will converse witn trainea linguists while at lunch. Tbe employes In the course are re quired to learn thoroughly tha economic. social and physical conditions or tne countries where they Intend working. Shorthand, stenography and practical bookkeeping- form a part of tbe currlc- lum. It is reported that no guaranty of stay is exacted from the men who take training for tne worn in uouta merles. The course will laat one year. nd during the training period students ill receive the pay ordinarily paid to beginners in banking. SHIPPERS' VIEWS AWAITED Washington Commission to Publish Data on Rate Increase. OLTMPIA. Wash.. Aug. II. (Sp, claJ.) To give shippers a chance to protest the proposed increase In ex press rates, tbe Washington Public Service Commission has announced It would publish data on what the in crease would mean on one day's actual uslness of the express companies. hlch will be ascertained Dy an Inves- tla-ation at once, so as to be ready be fore the next Joint conference with the Oregon Commission In Portland Au- ust SS. The conference In Portland Friday postponed action to await this tabula tion. The companies want nam In creases tn intrastate business In Ore gon and Washington as recently grant ed Interstate business by the Interstate Commerce Commission. The companies declare the increase in revenue will be S per cent If the change Is granted. but the Washington Commission win ascertain what actual dollars and cents raise will be for one day s actual Bus iness of all the companies in toe state, d will compare the present and pro posed rates with parcel post tariff for e Information of snippers oezore tn, th Portlsnd bearing. So long a war orders continue to pour Into the country, says Henry Clews, the New Tork banker, indus trial stocks will continue to soar and business in all lines affected by the Industries engaged In the manufacture of war munitions will improve. Mr. Clews believes also that most American Industries will continue to thrive after the war is over as the devastated countries of Europe will re quire material of various kinds to re build their ruined farms and cities. "The war group of steel share are energetically discounting future pros perity." says Mr. Clews. "War con tracts have of course been the obief stimulus. Many machinery and manu facturing plants bava been turned into munition factories, a few of tbe largest concerns having secured enormous contracts wblcb must be filled within the next few month. Prttt Held Exaggerated. "There Is much exaggeration as to both profits and slse ot some of these orders, but large profit are unques tionably in sight for a few special concerns, and meanwhile the specu lative spirit has been thoroughly aroused after a long period of tor pidity. The concerns securing war or ders are inevitably large consumers of semimanufactured materials, tools, etc and their subcontracts with pro ducers of raw materials are chiefly re sponsible for the present activity In the iron and steel trade, which is daily expanding. This industry ts facing a veritable boom. "Capacity Is now employed to at least 90 per cent and many concerns are fully employed or running overtime. Prices are advancing daily and promise to go considerably higher. It is esti mated that war contracts are absorb ing about iO to 15 per cent of current raw materials output and that domestic trade has not yet reached anything in. ih. normal level. Buyers, how ever, are being forced to place orders more freely than Intended in oroer to anticipate higher price and to secure deliveries. The building trade is re viving. Shipbuilding is active and railroads are placing orders more free lv for rolling stock and equipment, though ralla still seem to be somewhat In comparison neglected. The outlook o ho ateel trade, however, during the next 12 months seems unusuauy roseate. Heavy Mnaltloa Purchase Foreseen "Peace Is not In sight and war orders will continue. Our own Qovernment will also probably be a largo buyer for irmv nnH Naw eauloment ana aomeo- tio trade Is practically certain of fur- .k-- .ooooanr. when neace comes our export trade in cars, locomotives, oriaRe material, et cetera, snouiu ne stimulated, for the reason that the ter ritory devastated by war will have to be promptly rebuilt and deliveries will k. mor. nmmntlv obtained from the United States than from any other di rection. . . Demand from this ource cannot be ..n.fi.il tn continue. It IS quite uaeiy to abate later on, especially as Germany and England get back to something like normal Industrial activity. Never theless, It Is evident that for some time to come the American sieei in dustry Is in for a period of decided prosperity. This has been largely dis counted by the rise In the war group of Steel shares and liquidation may be a-oootari to increase as the advance progresses. ' . ... . "The activity In Steel will soon be reflected In better business conditions throughout the Iron and steel districts. Large movements of or are expected on the Lakes. The railroads will bene fit from larger traffic both ways. Labor will be better employed at higher wages, and the fall demand for many articles of clothing, toou ana lumuu. lngs will bp in large volume this Au tumn. In the sgricultural districts the outlook Is quite as promising. "Some slight decrease In conditions may be caused by lest week's unfavor able weather, but the agricultural out look aa a whole Is unimpaired and the Indications remain for good crops at satisfactory prices In all parts of the country. Even the cotton suua-uon is not so bad as at one time represented, and the South, while undoubtedly In convenienced by the war. though no more than certain other sections of the country, will doubtless emerge In fairly satisfactory condition." Your Best Friend Is the taoney you have when you need it. It is the influence which keeps the world friendly towards you. It makes you independent ,of borrowing; and of paying back. LIBERAL RATE OF INTEREST PAID ON SAVINGS by The United States National Bank Third and Oak Sts, Portland, Or. Capital and Surplus - - - - $2,000,000.00 The First National Bank OF PORTLAND. OREGON offers you excellent facilities, uniform courtesy, careful, attentive service and safety for your funds. We cordially invite your business. Capital and Surplus - $3,500,000 FEDERAL MINES VIEWED High Company Official Say Prop erties in Mexico to Remm. WALLACE. Idaho. Aug. 15. (Spe cial. in company with Harry L. Day, The Canadian Bank of Commerce HEAD OFFICE Toronto, Canada. Established 1867. . A general banking business transacted. Interest paid on time deposits. Commercial Letters af Credit laaoeoV Excnaag London, England, Bought and Sold. PORTLAND BRANCH, Corner Second and Stark Sta. F. C MALPAS, Manager. THE BEST EVIDENCE OF OUR CONTIN UAL AND RAPID GROWTH IS THE GREAT NUMBER OF SATISFIED CUSTOMERS WHO ARE DOING BUSINESS WITH US. THE NORTHWESTERN NATIONAL BANK The Bank of Personal Service WHILE AWAITING the opportunity of some profitable investment deposit your money in our Savings Depart ment and make it earn 4 per cent interest for you. We invite you to call and talk this over with us. Merchants National Bank Under Government Supervision Founded 1886 Washington and Fourth Streets president of the Federal Mining Smelting Company, Karl Eilers, a mem ber of the executive committee of the American Smelting & Refining Com pany, has made inspections of the fed eral plants In the Coeur d'Alenes. To Indicate the confidence which his company has in the future of the min im? industry in Mexico after his visit. Mr. Eilers said: "The American Smelt ing & Refining Company recently ac quired several valuable properties in Mexico, and is now making plans for early resumption In all tne mines. Commerce Safe Deposit and Mortgage Co. has for sale a small amount of First Mortgage Bonds, netting investors GV2 Phone or call for details regarding these high-class securities before they're all sold. Main 3067. 91 3d St tkXvei.eks' Grnw. THE BANK OF CALIFORNIA NATIONAL ASSOCIATION of Sam Francisco. Founded 1834 Capital Paid in $8,500,000.00 Surplus and Undivided Profits $8,256,73433 Commercial Banking. Savings Department PORTLAND BRANCH Third and Stark Streets Freight and Paseeneer 8TEA.U1.BS TO THE UAltU and Way Landlnea. "BAILEY GATZERT" Leaves i'orniind dally it T A. M except Sunday and Monday. Sunday excursion to C&scada Lochs leave V A.. M. "DALLES CITY Leaves Purtland Tuesda. anuradar and Sunday at 8:40 A. M. Bandar Cascade Locka Excursion SL Fare to Tbe lallea and Rrtura'a. AJ.DER-bT. DOCK. PORTLAND. Fhoaea Mala 81. A S11A. a COOS BAY EUREKA AND SAX FRANCISCO S. S. SANTA CLARA BAILS Tin BHD AY, AUG 1. P. M. NORTH PACIFIC STEAMSHIP CO. Ticket Office 112a 3d St. Mala 1314, A 131 Freight Office Foot Northrup St. B'dar H20i A 522 AUSTRALIA KXW ZEALAND ANT) SOUTH SEAS. Regular, tnronxh sailing; tor Sydney via Tablu and Wellington fr.m 8an Frandaoo, Auanat 18. September 15. October 13, and every 28 daye. send tor pamphlex. Union SteamihiD Co.. of New Zealand. Ltd. Office o7 Market atreet, San Franclsce, or local S. 8. and R. R. ag-enta. STEAMSHIP Baila Plrect For SAX FRANCISCO. LOS ANGELES AND SAX DIEGO Today, 2:30 P. M., Aug. 16 SAX FRANCISCO. PORTLAND LOS AXOEIE STEAMSHIP CO. FRANK BOLLAX. Agent. U4 Third eu A eiD. Main 26. San Francisco Los Angeles Without Cbaace En Route) Tha Bis. Clean Comfortable, Elegantly Appointed eaa;j 1 uc Steamship S. S. BEAVER (alia From Alnataortb Deck 9 A. SI.. AUGUST 0. 100 Golden SI I lea mm Columbia Hiver. All Ratea Include Berths aad Aleala. Table and Service Unexcelled. The San Kranclaco ot Portland a. 8. Co.. Third and Waahlaston Strecte (with O.-W. R.ait, Co.). Tel. Broad way 45U0, A 0121. FRENCH LINE Cofupafiile Generate Transatlantic ue .POSTAL SEKVICK. ' Sailings From NEW YORK to BORDEAUX LA TOUKAINE Aug. 21, 3 P. M. CHICAGO Aug. 28. 3 P. M. ESPAGNE Sept. 4, 3 P. M. ROCHAMBEAU ...Sept. 11, 3 P. M. FOR INFORMATION APPLY C. W. Stitujer, 80 6th K.I A. D. Charlton, tS3 Morrloon U.i . a. Garrison, C. M. at St. P. By.: Doraey B. Smith IIS Ud at.; E. P. iaira, iuu au i... h. h r ... . ... Ing ton at. t North Bank Road. Oth and Stark ta.; F. 8. McFarland. Sd and Wa.hlagwn . ; H.. li. Villi). lt a a... rwiisoo. SAN FRANCISCOtheNewWay On account of heavy bookings, due to great popularity of tiis , xwm raiaces. S3 (intai KUKIHE.H.1 r S NORTHERN PACIFIC. Only 26 hours at sea between ban vTancisco ana rurnanu EARLY RESERVATIONS Are Imperative to avoid dtaappomtment. Sailings every Tuesday, Thursday. Saturday. Stmr. train from ortb Bank depot B:3u A. M. FREIGHT SERVICE ON EXPRESS TLUE. NORTH BANK TICKET OFFICE, tb and Stark 1'honee bdwy. 80. A f67L American-Hawaiian Steamship Co. ik. Between 0(3 Portland M New York Dostoa C. D. Kennedy, Act., HM Stark St.. Portland. COOS BAY LINE Steamer Breakwater tt.il. vim Alnaaaorth Dock. Portland. every Thursday at 8 A. M. Freight and Ticket Otttce, Alnavrorth Dock. Fhonea vi. in xaoo. A 233::. Cltr Ticket Oftlee. SO Oth St. Phonea Marshall 4500. A 8131, roiiTLAM) o. coua ui a. a. aaacm f 109.0