Morning Oregonian., January 02, 1922, New Year's Edition, Section 6, Page 5, Image 53

THE HORSING- OREGONTAN, MONTI AT, JANTJATJT . 1923
THE WHITE HOUSE
WASHINGTON '
This people of Washington and Lincoln are conquering
the difficult problems of today, no less worthily, and with
r
t
ii
the faith and confidence which they bequeathed to us.
We are sure to find the ways to restored prosperity and
our meed of happiness.
WARREN G. HARDING
Rotary Club Members
Believing that no more adequate and inspiring message can be laid before our people as we face the
new year, and happy to serve in our own field in endeavoring to foster the fine spirit of optimism and
confidence that is laying hold of the hearts and efforts of American business men, we are honored
to reprint the above message from our President through the courtesy of the Portland Rotary Club.
THE NORTH W ESTERINI
NATIONAL BANK
i
PORTLAND
OREGON
jtwiuiiiilinlHmnuraiiililliwiiiiuiiwHiiiwiw ma r v nrnhlpm tn nolvfl. Tn the ma-I I il 1 1 . 1
HI many problems to solve. In the ma
the allocation of three large passenger-cargo
ships by the shipping
board found the local bankers lined
up and fighting.
Throughout the country among
financial men this city Is recognized
as the leading financial city of the
northwest. It has more banking
POPULATION OF PRINCIPAL
CIT1KS IX OREfiOSi. AC
tORDIX; TO OFFICIAL.
; O V K R N M E X T CEN
8l!S OF 1020.
Portland 258.288
I'ortland (mayor's esti
mate Dec. 31. 1921) 275.000
Balem 17.679
Astoria 14.027
Kufcene 10,603
Baker 7.728
Pendleton 7.387
I .a Grande 6.913
The Dalles 6.807
Med ford 5.768
Corvallls 6,752
Oregron City 6.686
Bend 5.415
Klamath Falls 4.801
Albanv 4.840
Ashland 4.2S3
Marshf'eld 4.034
North Bend 3.268
.McMinnville 2.767
N'ewbersr .... 2,566
Dallas 2.627
Hlllsboro 2.468
Silverton 2.251
capital, which Includes surplus and
undivided profits, with the sole ex
ception of total deposits.
Portland has more resources to
draw from than any other city In this
section of the country. It is the
wealthiest community. It has. so to
speak, built Itself out of itself by
means of reinvesting profits In home
Industries because It has been built
out of the wealth of the community.
Portland's stability Is exemplified
by its lack of radical ups and downs.
When other communities have suf
fered radically in times of stress and
boomed radically in times of pros
perity Portland has continued on the
even tenor of its way in a compara
tively easy frame of mind and con
dition with unemployment at a mini
mum and business failure not large.
Portjand Is not the boomer type.
It is solid and substantial like the
wonderful trees of the state's forests.
In the last year, which has been one
of stress in business and therefore
one in the banks, the local financial
institutions, through their officials,
have made special efforts to lessen
the burden, especially on the man en
gaged in agriculture and the livestock
business. This has been done indi
rectly through the country banks, but
it was the strength of the Portland
institutions which made it possible.
One instance alone showing help
to farmers was that of putting at the
disposal of the Oregon co-operative
grain growers' association a revolv
ing fund of $1,000,000 after this asso
ciation had found itself unable to
meet the requirements of the war
finance corporation. This one help
alone allowed the farmers of Oregon
to market their wheat early and at
the highest prices of the fall while
their neighbors in nearby states have
been forced to sell at the low rate.
Portland bankers have had much to
do with the record ot this city in in
creasing in money terms the exports
of this port so that the export record
of 1921 was seven times that of 1912.
These exports stimulate industry,
bring prosperity and cause the profits
which increase the financial power of
the city.
So through all tha commercial ac
tivities of the city one finds the bank
ers proving that they are a substan
tial type. As a result they enjoy an
enviable, position in the financial
world. Through their sterling ability
they have made Portland 'known as
the sub-treasury of the northwest.
The banks of Portland live on the
business created by the diversified in
dustry of the Columbia river basin.
These are through the dealings in
lumber, wheat, all grains, fruit, fish,
wool, livestock, dairy products, paper,
clothing, land and real estate of all
kinds. Exporting and importing re
quire also the attention of the banks
here.
Closely allied In all activities of
the Portland banks are those of the
banks In all parts of Oregon. The
hanks of the state as a whole rank
first in the northwest as to financial
stability. Oregon has bad less bank
failures than any other state' and
what few banks have closed their
doors have been very small and in
agricultural areas.
The country bank Is faced with
! PORTLAND BECOMES GREAT FINANCIAL CENTER f
5 . . x
City's Bank Clearings Rise From $107fi00fi00 in 1900 to Nearly $2,000 fiOOfiOO in 1920, Figures j
1 for 1921 Being Incomplete, but Showing Is Held to Be Satisfactory. f
By Kulph E. Morrison.
A STATEMENT giving Portland's
increase in bank clearings from
approximately $107,000,000 in
r.MjU to nearly $2,000,000,000 In 1920
tells almost in a word the tremendous
financial growth in this city in 20
years. It shows an average increase
per year for the 20 years of $100,000,
000, or an increase every year of an
amount nearly equal to the total
clearings in 1900.
While the clearings of 1921, which
it will be necessary to estimate be
cause official figures will not be re
ceived until later, are not as large as
1920, they are close to those of 1919.
The difference between the clearings
of 1921 and those of 1920, while large
in number of dollars, is not nearly so
large when considered in the light of
tho volume of business transacted
through the banks, for manufactured
and agricultural products were sell
ing for considerably less in 1921 than
3 1920. The estimated clearings in
1921 weie $1,570,000,000.
It has often been said that Port
land's financial strength lies largel
In the fact that wealth created here
has to a large extent remained to be
re-invested for further enlargement
of its business activities.
This makes the business position of
Portland and Oregon fundamentally
stronger. Many cities of the United
States, some on the Paclfio coast,
have suffered in proportion in the
business slump of the last year far
more than Portland. This was be
cause of the fact that, while in many
cities capital from without was ab
sorbing Interest and profits during
the period the community was be
coming poorer, in Portland and Ore
gon local money was Invested in local
businesses, bonds, home mortgages
and other enterprises and the inter
est returns were being turned back
into business channels, thus forcing
stability, while the business of other
cities became weakened and unstable.
Through banks flow practically all
the business transactions of a com
munity. Through the creation of
wealth banks become prosperous.
Portland banks are known through
out the country as stable and reliable.
But banking in its larger com
munity sense is not merely a means
to earn money for the stockholders.
They are a creation of accumulated
wealth of many persons to help in
building the community which they
serve by wise co-operation with tne
most enlightened and courageous
commercial minds. Such co-operation
lies in backing the creation of
new enterprises and standing behind
established businesses in times of
stress.
Officers of Portland banks have the
highest reputation of being far-seeing
and are therefor continually on
the lookout for enterprises and In
dustries which will mean more em
ployment and more wealth In the
community.
Especially In the matter of exports
which mean so much to Portland at
present and which will in the future
have ever-increasing importance have
the Portland banks been forehanded.
The recent campaign of Portland for
Jority of cases it has only a small
amount of funds to lend to its cus
tomers. This money requires interest
return of not less than 8 per cent.
Almost every bank in the smaller
cities, especially those In the county
seats, is faced with the serious prob
lem of financing the warrants issued
by various municipalities in their ter
ritory as well as the county itself by
reason of the public treasury having
no funds to take up the warrants. The
passing of this burden to the small
banks has been a serious menace to
their properly taking care of their
financial problems brought about by
readjustment conditions. In many
cases it has forced the bank to redis
count its best paper to secure more
ready funds. Deposits have de
creased during recent months. Also
savings accounts are slightly less.
However, country bankers are hope
ful and look for very much better
conditions in the very near future.
In the matter of deposits in Port
land banks these are less now than
last year. Also savings deposits are
less. However, the bottom, according
to all bankers, has been reached and
both deposits are increasing gradual
ly. With renewed business activity
they will grow greater rapidly.
There are a number of reasons for
the shrinkage in deposits, chief of
which is that the government has
withdrawn funds that had accumulat
ed here during the war.
There have been few bank changes
during the year. The People's State
bank was consolidated with the State
Bank of Portland, with the latter
name retained. The Bank of Com
merce of. St. Johns was absorbed by
the Peninsula National Bank of St.
Johns.
Lumberman s Trust
Company
BANK
CAPITAL $500,000.00
SAVINGS COMMERCIAL TRUST
BOND DEPARTMENT
MUNICIPAL CORPORATION FOREIGN
GOVERNMENT BONDS
BROADWAY AT OAK
PORTLAND, OREGON
A Conservative Custodian
If You Are Moving
to Oregon
Have your home bank transfer your
account with a letter of identification
to the Hibernia Commercial & Sav
ings Bank, Portland. i
I
You will be able to draw against
the account as soon as you arrive, and
we will be glad to assist you in every
way in getting located.
The Hibernia was established in
1892, and is a member of the clearing
house and of the Federal Reserve)
system.' It is the second largest state
bank in Oregon, yet is not too large
for personal contact with its cu
tomers.
Sksss
HUMS
accKWEgaAin
ilsAVlNGS 11
Fourth and Washington Streets
Portland, Oregon
FUNDAMENTAL
RESOURCES
The wealth of the West is funda
mental. It is not dependent upon
spasmodic prosperity or superficial
industry, but swells steadily from the
natural resources of the land. The
world needs what the West has to
offer for the purpose of food, clothing
and shelter the basic necessities of
man. The West cannot be robbed of
its riches, nor can business and eco
nomic conditions do. more than tem
porarily retard the natural rewards of
its inheritance from its fields and
rivers, forests, mines and factories.
This bank has confidence in the
future of the West and embarks upon
another year with a feeling of con
servative optimism.
BANK OF
CALIFORNIA, N. A.
A NATIONAL BANK
Member Federal Reserve System
Third at Stark Street
Portland, Oregon