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About Morning Oregonian. (Portland, Or.) 1861-1937 | View Entire Issue (Nov. 1, 1915)
THE MORNING OREGON IAN, 3IONDAT, NOVEMBER
- ' v
I " i i
BANKS HAY SHOW
VOLUME OF TRADE
New System of Reporting Is
Declared Better Barom
eter Than Clearances.
CLEARING-HOUSE TO ACT
Figures Produced to Demonstrate
That Proposed Plan Is More Ac
curate and Adoption In Port
land Will Be Advocated.
Portland is being- urged to begin the
practice of reporting- each week its
total volume of bank transactions as
well as total clearings to the clearing-house
section of the American
Bankers' Association for publication in
the press reports sent out through the
United States. The suggestion to do so
has come through W. D. Vincent, vice
president of the Old National Bank, of
Spokane, and O. Howard Wolfe, cash
ier of the Philadelphia National Bank,
who are respectively vice-president and
former secretary of the section. R.
Lea Barnes, vice-president of the
United States National Bank, and
president of the Portland Clearing-
also urged. In the case of Portland,
that only by a reDort of the, total t ru nn-
actions of its business for 1916, due to
the consolidation of the First and Se
curity National Banks and the pur
chases by the Northwestern National
Bank of the Merchants National will
the true condition of its business prog
ress be indicated.
Little Time Required.
It is declared that the plan, if adopted
by the Portland banks, will require but
10 minutes additional time in the week
for each bank to make this report.
There will be a little additional work
for the manager of the clearing-house
in compiling the report each week for
the banks and for the news agency, by
Mr. Vincent, but it Is declared that this
additional burden will be almost neg
ligible as compared with the good ac
"There is everything in favor of
Portland acting on this suggestion, so
far as I can see." said R. Lea Barnes,
president of the Portland Clearing
House Association, "and I shall bring
the matter up before the next meeting
of the clearing-house and recommend
THRIFT IS ENCOURAGED
BANKS TTRGITfG SAVINGS STSTEM
ON SCHOOL PUPILS.
Survey Shows 388,540 Youngsters
. Carry Accounts 'With Aggregate
Deposits of $1,792,640.
Encouragement of thrift among
school children is a propaganda to
which the American Bankers' Associa
tion is devoting a great deal of effort.
To determine Just how far-reaching its
influence was in this connection, the
savings bank section of the association
asked the Controller of the Currency
SYSTEM HOT LIKED
Chicago Banker Finds Fault
With Reserve Rulings.
STATE BANKS KEPT OUT
E. r. Hulbert, of Chicago, Objects
to Multiplicity of Control and
Privilege of National Institu
tions to Do Trust Business.
Why state banks are unable to af
filiate with the Federal reserve ays
tern is the subject of a document
recently issued by B. D. Hulbert. vice
president of the Merchants- T.,- a
Trust Company, cf Chicago, who has
given thorough study to the subject.
Mr. Hulbert enumerates three prin
cipal causes that prevent the state
"" irom joining the system: mul
iipncity of control, the privilege
granted to National banks to engage
in trust business, and the prohibition
BBBiasi common directors.
At present." savs Mr. Rniw
"there appear to be four distinct de-
priiufn or me government having
separate control over member banks.
There are the Treasury Department,
the Controller's Department, the Fed
eral Reserve Board, and the Federal
reserve banks. State banks entering
the system would still be subject to the
control and supervision of state au-
August 5. 191 5 . . .
August 12, 1015 ...
August 19, 1915 ...
August 28. 1915
September 2. 1915
September 8, 1915
September 16. 1915
September 23, 1915
September SO, 1915
October. 8. 1915
II SAN FRANCISCO.
S 8.8901 7.9
S 3,0891 8.1
1 52 470 09 A.
t 3.2! 52
47 41 K l
37.AOA1 ft n
113.145;te.9 61,921 IO. 9
118,100(10. I 64.613112. 8
i-imH-w 3T543 ".5 tn2.2:x
S-5U ??? ! 18.0161O.2
o-isom. ... 13,6881
86.801 11 8
132.7S6U7.4f 62,084118 ."911 33.'601!'b:6i
House Association, will brine the mat.
ter up for action at the next meeting
ji tne ciearing-nouse and urge its
Tho additional data is ukl .
cause it is generally agreed that the
total transactions of the banks are
much more reliable and comprehensive
as a barometer of business conditions
of a community. Clearings, it has
"can demonstrated. represent only
about 40 per cent of the total business
done by the banks of the country;
.iisvl j.v per cent or tne Duslness deal
ings of a city are generally in cash,
and that the remaining B0 ner nt
represent the transactions which are of
"con on tne Dooks of the different
banks, but which never become a part
of the volume of clearings.
Plan Becoming; General.
Thirty of the principal cities of the
country for the past two years have
been making such reports through
their clearing-houses and they have
been published, week by week, in Brad
etreet's Journal. Included in this list
is Spokane, Seattle, Los Angeles and
San Francisco, four cities of the Pa
clflo Coast territory. All these cities
agree that total bank transactions are
an index of the actual business done
and a more sensitive barometer of ex
panding business than could be ob
tained in any other way.
Total bank transactions, it is shown,
are obtained by adding together all of
the charges made during the week
against the deposits of the bank. Clear
ings, on the other hand, are the to
tals of the checks that are exchanged
between the banks. The transactions
will Include the clearings, but the
clearings will only represent a part of
the transactions. All of the dealings
between the customers of the same
panic, tne Items of patrons, all checks
which are paid directly at the teller's
window and all remittances from one
bank to its corresponding bank are not
made a part of the clearings records.
It is further shown that the operations
of the Federal reserve banks, through
their systems of clearing checks and
dealing direct with member banks, will
further reduce quite seriously the ap
parent returns of the total business
of a given community through -its
f.'earloifi Not luifornt.
It is also shown by those who
liave become interested in having total
transactions reported, that there is
lack of uniformity in the reports of
managers of the clearing-houses as to
what transactions should pass through
the clearing-house. It has frequently
been the practice, much more so in
bygone days than now, it is said, to
"pad" the clearings by exchanging
checks between banks, by passing
through the clearing-house the checks
drawn to pay clearing-house balances,
and which represent no commercial
transactions whatever. Many a city
it is said, has charged its rival with
"padding" the clearings statements,
the real facts being evident when the
reports have been heavier than the
ul tne community seemed to
The following comparison of total
bank transactions and clearings of the
four Pacific Coast cities referred to,
for. the 10 weeks from August 5 to
October 8, both inclusive, will show
the immense volume of actual business
dealings which go unrecorded when
reports of clearings only are given
to procure what information h mum
concerning savings banks in schools of
As a result of the compilation he
found that 1925 schools had instituted
savings banks, that 398,540 pupils car
ried accounts out of a total member
ship of 928,784 pupils, that the amount
deposit was i,79Z,640. An item in
the report of especial interest to the
banks was the fact that 104.995 of the
pupils who had started savings ac
counts had saved sufficient to justify
them in transferring their accounts to
me regular Danks.
Portland was the only city in Ore
gon represented in the compilation. At
the time the report was made it had
six schools with savings bank plans,
831 depositors out of a membership of
3507, and total deposits of $1628.60. Two
cities only in Washington were repre
sented. Spokane has 34 schools, with
a membership of 25.000 duii wbn
carry 3481 accounts and total deposits
of $73,648. T,he other place is Pres
cott, with one school of 202 pupils 32
depositors and total savings of 1 12.48.
ALLIES' LOAN BEING TAKEN
Minnesota Bankers SnbscriTin i
While banks In Portland and other
parts of the Northwest will not par
ticipate in the Anglo-French loan, the
anus or Minneapolis and St. Paul urn
pose to subscribe about $5,000,000 to
the issue. E. W. Decker, president of
the Northwestern National Bank, of
ouuiie.yoiis, explains that this movi
on the part of the banks and indi
viauals of the Twin CitiAs i. lot,
Silely fo" the purpose of making a
act ior our rarm produce.
Great Britain and France hnniht
mally in excess of J7B0.00.1 nnn r. .,-
num from this country before the war
oegan. government reports would in
dicate that the United States has a
surplus of wheat, alone, above normal
home consumption of about 400.000,000
bushels. It is. therefore, of vit.i im
portance to this section of the country
that as much of a market be found
aoroao tor our grain as possible.
in aaaiuon to this, a much larger
surplus than usual of wheat has been
raised in Canada. India. Amtmiia i
jvi KcimnH, so tnat the world supply
of wheat, above the normal consumn-
uuiu appear to De so great that
me oanxs ana Individuals participat
ing in this syndicate feel that thev are
performing a service to this part of
vUUui., in locating tne best mar
kets possible abroad.
CONDITION DECLARED BEST
Henry Clews Says Country's Sound
ness Is Demonstrated.
Henry Clews, the Now -v-i, i ,
compliments the American people on
the coolness and calmness with which
they view the unusual financial and
commercial transactions that have been
, ln,s country within the
r-ilnl? aew days aBO-" "marks Mr
" ' ' curreni news letter, "the
moat remarkable Government loan in
San Francisco ,
Totsla . ..
. 11,755.190.000 JS67.169.000
Total bank Trans- Transacts
y4,'-n? -43 1104.406
o,514,000 .84 69 27 ft
523.074.000 li. 547 079
189,305.000 .38 137.260
The foregoing shows that only 34 per
cent of the bank transactions are re
corded in the case of Spokane, 42 per
cent in Seattle, 49 per cent In San Fran
cisco and 58 per cent in Los Angeles.
The aggregate total of unrecorded bank
transactions for these four cities in
only 10 weeks exceeds $908,000,000, or
62 per cent of the total. t
Weekly Figures Given.
The relation between clearings and
total bank transactions of these cities
is seen in another table which gives
in thousands of dollars the total
transactions and the total clearings
tide by side for each week for the same
10 weeks, as above, together with the
rate of increase or decrease from the
corresponding period of 1914.
In the case of Seattle it is shown that
there is a decrease in clearings when
the bank transactions record an in
crease for the week and that sometimes
there is more of a decrease in transac
tions than is shown in the clearings. In
the case of Spokane the same differ
ences are shown in a more exaggerated
form, and the discrepancies are more
marked In the cases of the two other
Spokane reports that for the year
1914 its clearings showed a loss of 10
per cent, while its total of bank trans
actions showed an actual gain. It is
t IZhZ pIaced in this market, and
r r?r?i' ,1 t f,rst day without exciting
beLiPnPnfninanClal clrcle- Since the
Deginning of the current year we hav.
nported about !30,000,000 of gold, an S
Hi". "ur" J8 cmmg. our merchan
dise exnorta ntrnin k-nt,. i -
oVi'noo 1?0.Untln t0 over '3.000.000
or 844,000.000 In excess of imports for
period. Russia negotiated a
AF Cn.VLact for 60.000,000 and Italy
offered $25,000,000 of notes for war pur
poses. A new American preparedness
policy, costing fully 500 000,000 was
announced from Washington without
evoking any special interest. That
such movements and Ideas as these can
come and go without disturbing our
serenity is ample proof of economy
ouuna mental equilib-
Washington Power Company Sued.
,SHBHLIS' Waah-- ct- SI. (Spe
cial.) The Northern Bank and Trust
Company of Seattle has begun BUit in
the Lewis County Superior Court
against the Lewis County Light &
Power Company et al, to secure the
foreclosure of a bond issue of 8250,000
Attorney's fees amounting to 85000 to
gether with costs, are asked.
I hope this will finally be settled by
placing the supervision and control
t member banks of each district
V "anas or tne Federal Reserve
Bank of that district under the su
pervision of the Federal Reserve Board.
This would practically extend the
present system of clearing-house ex
aminations to all member banks and I
believe no one familiar with this sys
tem will question the statement that
it is immeasurably superior to any
. nun, can De exercised by
the controller's' office.
Proper Supervision Aim.
"Our experience with clearing-house
examinations, however, has demon
strated that bank failures can be pre
vented by proper supervision. I be
lieve there has not been a single fail
ure under that system and we all
know that under its operations a great
many banks, both National and state.
av?,-been clealed up and put in good
"I am aware that the new rules
intend to place the sunrr.inn , v. .
state banks entirely in charge of the
UD.w reserve coard and it must,
or course, be assumed that the present
Secretary of the Treasury and Con
troller of the Currency assent to this,
t8-. y aro botn members of the Fed
eral Reserve Board.
Trost Right Questioned.
"Regarding the exercise of trust
powers by National banks, so far as I
know bo one pretends that this was
put in the law to serve any public pur
pose No one pretends that such
service can be performed by National
banks any better or as well as it is
being performed by trust companies
organised under state laws. '
i'ihhem?f feriou objection of all
cPJ;ib,tJon ot c"non directors.
Congress has decreed that where there
is a common ownership of stock there
wher. ?bfmnUm direct- but that
where the ownership of stock is not
common there shall be no common
directors of member banks. This, of
tZZ"; 18 dw?e for no othe'" Purpose
ena,ble th National bank to
ft couro 'no .7? NSSn
L. J. WILDE SELLS INTEREST
Former Portland Banker Disposes
of Stock in San Diego.
Louis J. Wilde, until a few years ago
engaged in various banking enterprises
Por"and. has sold the controlling
interest in the United States National
Bank at San Diego to Frank C. Spalding
and other prominent hnainu.
Spalding has succeeded Mr. Wilde as
president of the bank
The United States National Bank was
organized -by Louis J. Wilde in 1913
with a capital of 8100.000. Since that
time it has attained deposits of 8437 000
and resources of 3647.000. President
Spalding has been active and promi
nent in San Diego banking circles for
several years and has for some time
been in charge of the trust department
of the Southern Trust & Savings Bank
of that city.
Counterfeit Notes Circulating.
Portland banks have been advised
that a new counterfeit 310 National
bank note on the First National Bank
of Edmond, Qkla. is in circulation. It
6 One Year Convertible Gold Bonds
Dated October 15, 1915 exempt from all Italian taxes v
Interest payaWe April 15 and October 15 CtbCr 1S' 1916
Coupon notes la denominations of ,1,000, $500 and $100, registrable as to principal only
Principal and In tarsal payabl in United States rold coin at the offices of Lee, Hirrtnsoii tk Co..
Boston, New York and Chicago "
CnT2ie Wi at raturity into one-year 6fo Gold Notes of the Italian
Government, par for par which in turn will at maturity be convertible, at the holder,
option, into 10-year S)4 Gold Bonds of said Government, par for par.
We regrard the credit of the Italian Government as excellent and these
notes as unusually attractive. The total annual Interest charges on
the national debt amount to only about $3.28 per capita. The two
conversion privileges rive important lights f which the purchaser
can avail himself later If he desires.
TaW'pCTita?00 36'00'000' has tod a national debt of about $3,247,400,000.
The Government owns about 76 of the railroad mileage of the country. It also owns all
telegraph and substanUally all telephone lines. These public utilities represent an in-
IK 5 y96'000'00' " 11,53 Prtion of thedebt. repres" tb" proacth
assets, be deducted, the net national debt would be $1,851,300,000. or $51 per capita.
Italy's record for the last fifty years has been one of notable achievement. It has shown con
T?SAmZ?a'aA m PPulation- wcalth -nd education, extraordinary gains ia Entree
wlr , StrZS ftcadib; proving national credit. ThT yea" bXrTthl
nation?. " ' pUdng amonS bighcrt of European
Savings deposits ia ItaEan banks show constant gains: 1
Deposits, December 31, 1883
$222,096,000 or $7.02 per capita
1,163,230,000 or 32.68 " "
27El!n lssable.,lnd?r ertible privilege, will be payable in lire as well
as in dollars which will give the opportunity to Italians to purchase them to send home,
and in our opinion will make them attractive to investors in Italy at the close of the war!
The proceeds of these notes will be expended for merchandise and
commodities purchased by the Italian Government In this country.
Temporary negotiable receipts will be delivered pending preparation oj the definitive notes.
We shall be glad to receive applications for these notes
through any bank or trust company in the United States.
Price 100 and Interest, Yielding 6fo
LEE, HIGGINSON & CO. GUARANTY TRUST CO.
boston CHICAGO new york QF NEW YORK
Subscriptions will be received in Portland by
HALL & LEWIS, Lewis Building.
A general banking business
Interest paid on time deposits.
Commercial t.ettrra ot Credit
eiekaas n London. BnKUnd.
Bnosht and Sold.
Corner Second and Stark Sta.
F. C. MA LP AS, Manager.
First-class residence loans
91 Third St,
Chamber of Commerce Bldg.
Wlthont ChiDct Ei Roate)
S. S. BEAVER
Sail Krora Alnsworth Dock
S P. SI, November 2.
lOO Golden Miles on
Co Ism bla River.
All Rates Inclade
Berths and Meals.
Table and Service
Tbe San rraplro Portland S. S.
Co.. Third and Washington Streets
wltk O-W. R. A N. Co. Tel. Broad,
way 4500, A U12U
"INn-ln' "Pa laces of t-Vmstfle."'
Is ot the aeries of 1902-190S; check
letter "D"; portrait of William Mc
Kinley. This counterfeit is printed
from photo-mechanical plates on two
pieces of paper, between which Bilk
fiber has been distributed. It is a
dangerous counterfeit. The back of
this counterfeit 1b not as well-executed
as the face. It is off color and the
lathe work is somewhat course and the
lines are broken in many places.
FEWER IRISH EMIGRATING
Fifty Per Cont Decrease Shown, to
Refute Recent Charges.
LONDON. Oct. Sl.--John Redmond.
the Nationalist leader, in a letter made
public tonight in reference to state
ments which have- been made to the
effect that a large number of Irishmen
are emigrating; to escape conscription,
quotes the figures of 1913, 1914 and
1915 showing "that Irish emigration
has dropped In the most remarkable
degree, at least BO per cent, and the
He adds that similar statements re
garding emigration from Great Britain
will be found on Investigation to be
equally devoid of foundation.
in the Spokane district to save money
Jobbers eay that things are good in
their line.. Retail business is rather
slow in the City of Spokane, but bet
ter In the country districts Th
mines are adding greatly to our
strength in the shape of dividends.
Our crops are good and harvest prom
ises a lime Detter than at any time In
Payment for Coin Quicker.
A new regulation authorizing the
superintendents of the New York Assay
uiiice and tne San Francisco Mint to
issue checks for 99 per cent of the
value of foreign gold coin deposits
when presented in sums of not less
than $1,000,000. waa issued by Sec
retary of the Treasurv McAdoo Oct 7.
The remaining 1 per cent to be paid
upon the completion of the melting
and assaying of the coins. Heretofore
only 90 per cent of the value has been
paid on receipt of the coins; S per
cent was paid a few days later and
the final 2 per cent when the assay
had been finished. A considerable
saving in Interest will accrue to the
depositing bankers as a result of the
Spokane Condition Pleases.
D. W. Twohy, pesident of the Old
National Bank of Spokane, In recent
communicationas with Portland bank
ers gives expression to the following
views regarding business conditions in
that section: "There is a great dis
position on the part of our people
A Savings Account affords these
f- special advantages, security,
interest and training in thrift. Open one at
The First National Bank
OF PORTLAND, OREGON
Capital and Surplus
THE BANK OF CALIFORNIA
of San Francisco. Founded 1864
Capital paid in gold coin
Surplus and undivided profits
Interest paid on Time and Savings Deposits.
PORTLAND BRANCH, Corner Third and Stark Sts.
Wm A. MacRae J. T. Burtchaell
Manager. Assistant Manager.
A Quarter Century
of sound banking assures the se
curity of your money when de
posited in this strong National
You are protected by
Stockholders' Liability of: $1,000,000.00
Member Federal Reserve System.
Our modern banking facilities assure prompt
and attentive service.
The United States National Bank
Third and Oak Streets Portland, Or.
Pays Liberal Bate of Interest on Savings.
lxh uri ttrrUss,
With which is included by purchase The Merchants
National Bank, transacts a general banking business.
Interest Paid on Time Deposits.
Safe Deposit Vaults
Resources Over $9,000,000
The Citizens Bank
25 Tears Old.
Grand Avenue and East Alder.
- The East Portland Bank.
O on Savings.
S For San Francisco
TMm .. . . . .
trip daily till Nov. 30. Om w
.L5- A" far lncluda meals
sna berths. Steamer express (steel
parlor cars and coaches) leaves
Jorth Bank Station 8:30 A. M. ar-
5aVy? Friday.1"- Buady- W1q
ISOK1H BANK TICKET OFFICK
FIFTH ANu STAKK
Phones Broadway 920. a S8T1.
.T'S1??1? " Third and T'orrlson.
IOO Third St. and S4 Washington sC
Connarnle Generate Transatlantlqns
Sailings From NEW YOiK to BORDEAUX
Nov. 13, S P.M.
. .Not. to, 3 PJd,
The New Quadruple Screw
mM S. S.-I.AFAlk,TTF.
Maiden Trip from N. Y. Not. IS.
FOR INFORMATION APPLY
..p-W. Stinger. 80 6th su. A. I). Charlton,
too Morrison sb; E. K, Gaxrlton. C. M. SI tot
I R.v.l Horsey B. Smith, lis 3d St.; k. L
Baird. lOO Xd St.; 11. Dickson, SS Wsjih.
inxton st.t North Bank KoaU, lta and Stark
la.; F. S. McFarland. 3d and tVaablnstoa
.. K. u. Duffy. 12 Id st Fortlmno.
NORTH PACIFIC STEAMSHIP CO.
SANTA BARBARA. LOS ANOELE3
AND SAN DIEGO.
S. S. ROANOKE
Balls Wednesday. Not. I. P. m.
ElKEKA AND SAN I-KANC1SCO.
S. S. KILBURN
Sails Thursday. November 4. 6 P. M.
Tlrket Office 111 A Third St.
Fhones slain 1314. A 1314.
Today. Novpmbfr 1, :30 1. M. rMo
Fr&nclftco, Portland A Log Angeles
gtettnhhip Co., f rank Bollim, Af
14 Third St. A 4596, Main S. j
NEW ZEALAND AND SOCIH SEAS.
Via Tahiti and Rarotonaa to WvMlnrtnn
connecting at Walllnston for Sydney and
Australian porta. Regular sailings from San
Francisco November 10, December 8, Jan
uary S and every 28 days. Ssnd for pamphlet.
Union Steamship Co.. of New Zealand. Lta.
Office 679 Market street. San i-ruplMM.
or local S. S. and K. K. Aaents.
American-Hawaiian Steamship Co.
Flight "tV New YorH
Serrlc IW yl' '"' V5 Boatoa
Between Y I l Charleston
Portland fl'fr Ifortolk
O. D. Ksuedr. Art- iu stark St Poruaau.
Strs. DALLES CITY and STRANGER
Leave Portland dally, 7 A. AL. ex.
' eept Friday.
Leave The Dallea dally. 7 A. ex.
AIDF.R-ST. DOCK, PORTLASfD
Fheae Main 814, A 6112.
a 1 1 i 1 1 ins . i. us
r i b i i a "