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About The Sunday Oregonian. (Portland, Ore.) 1881-current | View Entire Issue (July 27, 1913)
12 THE SUNDAY O REG ONI AN. PORTLAND. JULY 27, 1913. FilORE ELASTICITY 15 DEMAND OF BANKS Business Men Ask President to Widen Scope of Redis count Securities. WAREHOUSE PAPER BARRED Democrat "Insurgents" In Congress favor Request or Commercial Interests Wilson's Ideas Are Isikely to Carry. Although the recent "Insurgent" move among: Democrats of Congress may change some features of the Owen Glass currency bill. It Is believed by local financiers that the provisions originally Inserted In the bilk by Presi dent Wilson will be retained. These provisions are a concrete ex pression of the President's theory and this theory Is shared by nearly all bankers that the chief function of banks Is to foster commerce,' trade and agriculture and not speculation and promotion work; that the Government has the sole power of Issuing money for general circulation, and that all private financial institutions vested with the power to issue money must be under control of the Government. The central Institution around which the proposed bank reform is to be built lies in the Federal Reserve Board of seven members, sitting at "Washing ton. The Secretary of the Treasury, Secretary of Agriculture and Controller of Currency will be three of the mem bers. The four others are to be ap pointed by the President and confirmed by the Senate. One of these four shall be a person with banking experience. The Cabinet members on the Board shall serve without additional salary, but the Controller of Currency shall receive $5000 a year in addition to his present salary. Each of the others shall receive $10,000 a year. The four mem bers appointed by the President shall serve for terms of eight years each, and the terms of the first appointees shall be fixed so that one member re tires every two years. One of these four shall be designated governor and another vice-governor. Rnen-e Binlu Provided. This Board, then, shall have power to establish not less than 12 "regional" banks in various parts of the country, which shall be known as Federal re serve banks. . Bach of these banks is to be In the center of a Federal re serve district. Every National bank within a given district shall be required to subscribe to the capital stock of the Federal re serve bank of that district a sum equal to 20 per cent of its unimpaired cap ital, one-half of such subscription to be paid in under the usual legal re strictions. The remainder of the sub scriptions shall be called for only in case of emergency. No Federal reserve bank can be established with less than $5,000,000 capital, which means' that the combined capital of the National banks within such a district must be not less than $50,000,000. These regional banks shall have a life of 20 years. No provision is made, however, for continuing them in ex istence, and the bankers have called the attention of Congress to this ap parent oversight in the bill. Each Federal reserve bank shall have nine directors, six to be chosen by the stockholding banks and three by the Federal reserve board. Three of the di rectors chosen by the stockholding banks must be "fairly representative of the commercial Interests of the dis trict. None of these three can hold stock in a bank. These regional banks are prohibited from paying dividends in excess of 5 per cent to shareholders. One-half of the excess is to go into the surplus fund and the remaining half into- the Federal Treasury. Surplus to Be Ileld Dona, The surplus never can exceed 20 per cent of the capitalization. Whenever it reaches that proportion, all the earn. Inga above the 5 per cent dividend go into the Federal Treasury. This is in tended to discourage speculation and questionable investments. National banks must, other banks may, affiliate with the regional banks. All members of the Federal reserve banks are subject to the same regula tions. None of the Federal reserve banks shall accept deposits from individuals, but each shall represent all the banks in Its district and shall al30 be Gov ernment depositories. This system, while in itself a far step in currency reform, is but the foundation for the most-needed reform elasticity. It is elasticity that these regional or reserve banks are expected to furnish. In times of financial stringency any bank may take to the reserve bank in its district merchants' acceptances or short-time notes arising out of com mercial. Industrial or agricultural transactions for rediscount and obtain from this reserve bank United States Treasury notes for 76 per cent of the face value of the rediscounted paper. More Elasticity Demanded. . Bankers and commercial organiza tions throughout the country have urged the President and Congress to widen the scope of the commercial paper subject to rediscount. They want warehouse receipts and acceptances on manufactured and agricultural prod ucts and on livestock and other com modities admitted to rediscount. This is one of the points over which a part or the uemocrats In Congress in surged." The notes so rediscounted are to be limited solely to commercial bills pay able within 45 days. The bankers wajit paper due up to 90 days admitted. No notes based on stock or bond trans actions are to be rediscounted. The notes so rediscounted are to be secured by the entire asBets of the bank dodg ing them, strengthened by the credit of the Individual borrowers and by the assets of the Federal Reserve Bank. No Individual bank can redlsoount pa per in excess of one-half its paid-in capital. To pay for merchants notes which these reserve banks will rediscount, the Federal Reserve Board at Wash ington will Issue United States notes, or "emergency currency" at such rates of Interest as the Board may fix from time to time. Each reserve bank will be required at all times to keep on hand in-actual gold S3 1-3 per cent of the aggregate amount of the commer clal notes that it rediscounts for the banks of its district. Reserve banks are given additional power to deal in gold coin and bullion, to invest in United States bonds and in short-time loans of the United States or its dependencies or any (state or foreign government, and to maintain banking accounts In foreign countries, as well as to establish agencies in for eign countries for the purpose of deal ing in foreign exchange. Funds to Be Distributed. All funds now in the United States Treasury, within 12 months after vassar of the bill, are to be dls- CAMERA MAN GETS SOME PICTURES WHEN" THE FIRST BUNCH OF FIFTY KIDDIES LEAVES FOR SILVERTON TO ENJOY VACATION IN THE COUNTRY. n .Of4 W MWr-'W .." 'V.1L Mine IS - -. .. -.i T X. ".: '...Mi lt r f , s, i : . a-riTfi?: k; "z? ; j! ;t : . : -a t5LMliNl Zs-i j"S(fi 'j-yi ivir.. .' r - . .','' iv ... jia . f . w trlbuted among the reserve banks. The Secretary of the Treasury may charge interest on such deposits. The act also provides for an issue of Federal reserve treasury notes in the sum of $500,000,000, which shall be distributed among the several reserve banks. The reserve banks will be re quired to offer as collateral security for such notes the notes and bills ac cepted by them for rediscount from the individual banks in their respective dis tricts. Bankers are objecting to this limit of the new treasury notes. They con tend that $500,000,000 will not provide sufficient elasticity to the currency Bystem. The bill further provides some minor regulation's regarding the balances that must be carried by the Individual banks with the reserve banks in their districts. Provision also is made for loans by National banks on farm lands for periods not exceeding nine months, and not in excess of 60 per cent of the actual value of the prop erty offered as security. Banks are limited In making their loans on this class of rroperty to 25 per cent of their aggregate capital and surplus and 50 per cent of their time deposits. The Federal Reserve Board has power to prohibit banks In specified regions from engaging in farm loans. Runaway Horses Killed. Two horses attached to the wagon of I Fries, a dairyman, got beyond his control In Macleay Park late Friday night and dashed over a 100-foot em bankment, being killed by the fall. The wagon became hooked to a tree and did not go over the embankment. Fries and his young son, who were in the wagon, were not injured. The police had the bodies of the horses removed yesterday. BOY MAYOR ASSIGNS AIDES Young Commissioners of Depart ments Named by Mayor Colion. . , Charles Cohon, Portland's Boy Mayor, has assigned to his- Commissioners their various departments. Ralph Holzman will be in charge of the department of public utilities; Henry Pander is Com missioner of Public Works; Scandland Collins, Commissioner of Public . Af fairs, and Joe Dietz, Commissioner of Finance. The young officials held a meeting last night and planned work to be taken up at the opening of the school term. ' City Pay-Days Announced. The City Council yesterday decided that hereafter the third, fourth and fifth days of every month shall be pay days for municipal employes. All those employed on public utilities will be paid on the third, those engaged on public works on the fourth and the employes of all other departments on the. fifth. It has been customary to pay on the first of each month, which necessitated making up the payroll on the 26th of the previous month, so that those who did not work between that day and the first might have their warrants made out for a full month's work. The new plan will remove this possibility. 175 ATTEND REUNION ANXUAIi PICNIC? OF ALBANYITES ITEIiD AT THE OAKS. Old Acquaintanceships Renewed and Mrs. M. 'U'estfall, Chosen Again to Head Society. The annual picnic and reunion of the Albany Association of Portland, cbm posed of people who formerly lived in Albany, was held Wednesday at the Oaks, which approximately ITS people in attendance during the night, and about 150 at the tables when the picnic dinner was served at 7 o'clock. It was a happy crowd that. gathered under the trees of the grove, and many old ac quaintanceships were renewed. Mrs. M. Westfall, president of the as sociation, was master of ceremonies, assisted by ber children and grandchil dren, while great-grandchildren of the still active women played around on the grass. At the dinner she presided and introduced the speakers, among them Judge M. C. George, one of Mrs. West fall's neighbors in the latter '50's near Lebanon, and Rev. Dr. D. V. Poling, formerly pastor of the Congregational Church of of Albany, now in charge of the Congregational Church in Over look, Portland. During the hour of twilight follow ing the picnic supper, the election of officers was held, resulting in the unan imous re-election of Mrs. M. Westfall as president, and Mrs. Sarah Hochsted- ler as secretary. Those registering at the picnic supper were: Judge George, Rev. Dr. Daniel V. Poling, Florence George, Elizabeth Carothera, Sarah Arthur, Ella McHargue, Emma Beam. Bes sie White, George Hochstedler. Sarah Hoch tedler. R. M. Doble. Orra M. Doble, Ella L. DuBruille, Mrs. Wandell, W. H. West cott. Mrs. S. J. Halght, Mrs. S. J. Hendon, Harold Poling, J. F. Troutman, Robert H. Ashby, Alice W. Poling-, Helen V. Poling, Dan W. Poling, Mrs. Mary Troutman, Vir ginia Troutman, Everett L. Payne, Charles Crowder, Mrs. C. W. Crowder, Mrs. I. H. Curl. I. H. Curl. Mrs. K. H. Ashby, Mrs. Lucy Hays, Minnie Burgger, Sallie Enright. C. H. Monroe, Mrs. C. H. Monroe, Mrs. Florence Hammer, Mrs. Clarence Craw, Mrs. R. E. Conn, R. E. Conn, Mrs. William Mc Farling, Mrs. M. Westfall, Mrs. T. A. Hayes. T. A. Hayes, Mrs. H. G. Colton, W. W. Rowell. Evalyn A. Gerke. Mrs. W. W. Rowell. Mrs. P, Richards, Madelyn Ward, Z. P. Richards, J. M. Jones, W. L. . McFarllng, Emma Sox Newton, Eva Stern berg, Mrs. M. Sternberg, Joseph D. Stern berg. Frank B. Wire, E. LaForest, S. V. Ramp, Mrs. E. LaForest, Charles Wagner, W. F. Reiner, M. F. Pelrce, A. W. Havens, Elizabeth Mae Pollock. Mrs. C. E. Mans field, Mrs. Joseph Webber, Mrs. Annie Webber, Mrs. A. R. Church, P. L. Nelll, Miss Katherlne Nelll, Mrs. Mary E. Parker, Mary r,. Parker, ' Mrs. W. A. Anderson, Elizabeth Anderson, Margaret Anderson, Mrs. I. M. Walker, Mrs. Mary Saltmarsh, I. M. Walker, Margaret McDonald, R. Gan tenbeln, Mrs. R. Gantenbeln, H. C. Salt marsh, Harriet Gantenbeln, Marianna Gan tenbeln, Mrs. H. C. Saltmarsh, August I.ange. Mrs. F. F. Toevs, Mrs. C. C. Parker, Mrs. Sternberg, F. F. Toevs, Dr. N. E. WInnard, A. G. Hunt, C. D. Montetth, Harry L. Day, Mrs. N. Stevens, N. Stevens, Mr. and Mrs. N. F. J. Denne, Mr. and Mrs. Charles Kirk, Dr. L. A. Kent, Jennie Clay ton Kent, Madle Armstrong, Mrs. Charles Kirk, Lola Senders, L". Carroll Day, Mrs. Harry L. Day, D. Alfred Thompson, Dr. Fred Thompson. M. D. Phillips, Alene Phil lips, W. F. Davidson, J. M. Pollock, Mrs. L.. A. Pollock. Miss Elizabeth Pollock. Mr. and Mrs. William Webber, Mr. and Mrs. Charles Barr, Dr. and Mrs. Bllyeu, William Riener, William Wagner, Mr. and Mrs. Eugene Larrimore, Mrs. Crane and Mrs. Parker. SCHWAB CASE IS INVOLVED Question as to Right of Magistrate Is Questioned. Whether the police magistrate when sitting as such and not as a Justice of the Peace may- go over the finding of a jury and allow a reopening of a case will be decided by Municipal Judge Stevenson next Tuesday, when the Ru dolph Schwab case comes up again. Yesterday the agitator, who had been convicted the day before of applying vile epithets to Father O'Hara, went before the Judge for sentence, but reopening of the case was requested on the ground that, if the offense was committed, it took place July 9, and not July 8, as had been charged by City Attorney LaRoche. Sitting as a Justice of the Peace, there would be no question as to the magis trate's right to order the case re opened, but the question of whether or not that privilege also is accorded the Police Judge has not come up be fore. Mr. Stevenson is both Judge and Justice, but beard the Schwab case as a Judge. He set next Tuesday for hear ing the arguments. TOTS Ifj HIGH GLEE LEAVE GIH BEHIND Members of First "Fresh Air" Party Begin Arriving at 6:30 A. M. for Trip. OTHER DELEGATIONS TO GO Silverton Heady for Army of Youth- ful Pleasure Seekers and Vrges That More Ke Sent, While Other Towns Also Apply. Continued From First Page.) BALD-HEADS WILL GET NEAR VIEW OF PERFORMERS Great Preparations Necessary for Transporting Largo Company and Equipment Needed in Production of "The Passing Show of 1912." .y:--'--s-?:' (IMA- .i -v it. 4: rtVH; r?v r Till ' A A I " ' "THE PASSING SHOW" CHORUS ON HUXWAV EXTEXDIXQ FROM STAGE OVER HEADS OF AUDIENCE. ANEW bald-headed row has been established, and the patrons of the Heilig Theater for one week beginlng Sunday, August 3, will have an opportunity to see the artists at closer range than ever before. Every member of the New York "Winter Gar den Company presenting "The Pass ing Show of 1912" trips to the foot lights on a. brilliantly lighted runway, extending from the center of the stage over the tops of the seats to the rear of the auditorium "over the heads of the audience" (used in the literal and not In the figurative sense of the theat rical manager's vernacular, for the en tertainment " has proved highly pleas ing). Up it and down It at frequent intervals during the performance, the funmakers dart forward to deliver their songs, to Indulge in some burlesque wrangling with, the stage director and to otherwise make things Interest ing and informal. So the news has gone broadcast that the optically deficient and the hairless gent need suffer no mental anguish when the carefully groomed young man in the box office nonchalantly an nounces: "Front row all sold out; not one left, no, nothing at all," for the Messrs. Shubert have provided this run way, which has been a fixture at the New York Winter Garden since the advent of "Sumarun," Thus a consid erable portion of the entertainment is tossed overboard from this pathway into the very laps of the audience. . Of course, it's a very straight and narrow way. In every corner of the auditorium and stage, the audience will find itself surrounded on every side by entertainers, singing, dancing and ca vorting around in reckless abandon and in strict violation of the conventionali ties of the theater, for they present as much of the show in the midst of the spectators aa they do on the stage. Hence, the Messrs. Shuberts' presenta tion of "The Passing Show, of 1912" forms a closer allegiance between the stage and the public than haa ever been accomplished before. This runway will bring into intimate relationship with the audience such standard stars as Trixie Friganza, Charles J. Ross, Adelaide and Hughes, Clarence Harvey, Eugene and Willie Howard, Moon and Morris and a hun dred others. An example of the care taken- In making arrangements for the stage production of big traveling organiza tions and the detail of preparation re quired for the proper mounting and "putting on" of a large musical com pany nowadays, is afforded by the re ceipt under registered cover this week of a blue print from the master me chanic of the New York Winter Gar den stage and scenic equipment de partment. This particular blue print, drawn to a scale, and with exact dia grams, elevations and transverse sec tions, is for the special purpose of in structing the master carpenters of theaters where the Winter Garden company in "The Passing Show of 1912" is booked to play on its present tour. This attraction requires for use in one of its special acts a tank for diving purposes. The blue print shows that this tank must be placed exactly 10 feet 6 inches up stage, measuring from the curtain line, and that the length of the aperture required for the imbedding of the tank is 16 feet by 10. An inspection of the diagram reveals minute and detailed drawings for the shoring of the tank, as also for the steam pipe connections for giv ing a Summer temperature to the wa ter. A large force of expert workmen, di rect from the famous New York Win ter Garden amusement palace, arrived yesterday for the purpose of construct ing the tank. This tank will be as perfectly appointed and finished as though It were being installed, in some exclusive private residence. The New York Winter Garden crew were sent to Portland not because the versatility of the local workmen was doubted, but because certain details must be perfect for the opening night, and precaution was merely the better part of valor. The Heilig tank will "be identically the same as the one in New York, and, therefore, when the 16 beautiful Ve nuses ' plunge Into its automatically heated water they will not appreciate the fact that they have departed from their native haunts. The Winter Garden management ex perienced considerable trouble in re taining the original voluptuous harem beauties for the perfumed bath, but finally overcame the obstacles by "pe cuniary inducements In the matter of salaries and an iron-clad agreement to install a tank, the equal in every es sential of the porcelain-lined, steam heated pool, in which the fair swim mers first displayed their aquatic prowess. and assisted the committee and Secre- 1 tary Manning in getting the youni passengers to their car and comfortably , settled. Many of the smaller young- r sters were almost frightened at the ; trains, but they were so happy they 1 soon forgot everything in the realiza- tlon that the promised trip into tha -vLtiiLiy was reaiiv at nanti. A number of mothers were in the ' party, glad and smilinsr in antini of the two weeks' rest in the country, ) but they allowed themselves to step into the background in the last scenes' of the departure, which were domi nated and vivified by the measureless activity and enthusiasm of the children. TuotbbruatacB Are Dljitributed. Just before the train pulled out the women of the committee distributed among the children toothbrushes which. had been donated by Woodard & Clark. and these articles, flourished trium phantly above their heads of the chil dren who crowded the car windows. took the place of tossing nags or flut tering pennons. Just as the train was ready to pull out a little German girl who didn't know how to say "toothbrush" in Eng lish, suddenly realized that she had no brush and all the others were provided, for she gesticulated wildly and in. pantomine made known her trouble, whereupon one of Portland's most dig nified society matrons dashed up to the moving train and thrust the brush in the child's outstretched hand. The girl was one of a large family. Her father has been sick and out of work for months and the mother earns a little Just enough to keep the children front actual starvation. Lou Mite Is Tearful. "I'm all alone, traveling by myself," announced a wee lassie of about 5 years. "My mother, she's slck'and so's my sister, and they can't go now." She was quite brave and smiled while in the machine, but In the confusion at the big depot she lost heart for a min ute and cried just a little. The pho tographer tried to get her right In the front, but she was not at all anxious to have her picture taken. "We will go in wading and maybe we will ride on a pony," said a bright boy, eager with anticipation for the country he had never seen. He is one of the many who live in "rooms," and has had to take care of his little broth ers wniie ine motner goes out Dy ma day. The great Joy of playing in a, field, of scrambling over hills and pick ing wild flowers were all unknown to him, but he had a good imagination. J. M. Scott, general passenger agent of the Southern Pacific, was at the sta tion to watch the departure, and moved about in the crowd of happy children with the whole-souled smile which seemed to break out spontaneously upon the face of everyone who saw tha departure. It was a smile that tha women of the committee wore in com mon with the trainmen, the gateman. the fatherly policeman, the scores of casual bystanders a smile that had its source near the heart and trembled at times close upon the verge of sym pathetic tears. Thus went away the first party of the "fresh air" women and children to meet with a warm and enthusiastic re ception among friends, who have been preparing- for them on the 'farms of Silverton since the movement was In augurated, more than a week ago, by Mrs. G. W. Hubbs, president of the So cial Service Club of that town. Farm ers and their wives drove into Silver ton early to meet and take home with them members of the "fresh air" party. Other Offers Come. That not only this 50, but 50 more. and. if possible, more still will come. Is tha hope of the warm-hearted people in and about Silverton. Individuals In many other places also have written to the Associated Charities asking that "fresTi air" guests be sent to them, and Mr. Manning expects, tomorrow or Monday, to enlist several other towns In the Willamette Valley in the move ment in the same way that Silverton has been enlisted. The support of the work in Portland, ever since its inauguration, has been universal. Not only cash contributions, but gifts of clothing and other sup plies have been generously given, and the parties being organized now are nearly as well provided for already as the party which lias just left. The Southern Pacific yesterday ar ranged that the car containing tha party should be routed direct to Silver ton, with no stops or transfers. A special rate for transportation of other parties that are being organized prob ably will be granted. Another party to Silverton will leave Wednesday, and a third on Saturday. SILVERTON "VVKLCOMES KIDDIES Vacation Crowd Greeted With Open Arms at End of Journey. SILVERTON, Or., July 26. (Special.) Welcomed by hundreds of residents of Silverton when their car reached the city today, 50 happy children from Portland, members of the first "Fresh Air" outing party organized by tha Women's Social Service Club of Sil verton and the Associated Charities of Portland, began their first real vaca tion In the open air. Interest of the people of Silverton and the surrounding country in the plan was intense and ample prepara tions were made for the reception and care of the "Fresh Air" parties. Mora than twice the number of children would have found welcome. There was no delay in assisning the children to families which had arranged to take them to the country. Mrs. G. W. Hubbs. chairman of the committee, accompanied by Mrs. Oeder, met the party at Woodburn. The trip was in. charge of Mrs. Margaret Thoro man and Mi3 Barlow, of the Associ ated Charities of Portland. At Wood burn the children were assigned to the homes where they were to be en tertained for the next few days and were labeled so that there would be no delay or difficulty in handling them at the Silverton station. All who had arranged to entertain the visitors in the country were on hand when the train arrived. The party was quickly distributed and the children were soon merrily on the road to their vacation homes.