The Sunday Oregonian. (Portland, Ore.) 1881-current, February 13, 1921, Section One, Page 15, Image 15

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hi s
Federal Reserve
Proves Vital
Financiers Iook Forward With
Confidence to Restoration of
Fre-AVar Stability.
iontlnnd From First Page.)
cheer and confidence. Business will
Improve from now on and prosperity
should, be with us again after an
other harvest"
Edward Cooking-ham, president of
the Iadd & Tilton bank and a mem
ber of the board of directors of the
Federal Reserve bank, said that
business is slowly, but surely, read
Justing- itself after the period of war
Stabilisation Still Continue.
Mr. Cookinarham's statement fol
"The stabilization of prices has not
jret been reached. For some time
past I have been watching with ex
traordinary Interest the process of
deflation which has been proceeding
steadily and, on the whole, in an
orderly way. Few, if any, are
escaping its inexorable effects.
Slowly but surely business Is read
justing itself from war conditions
banks in a much more satisfactory
Position as far as liquidating power
is concerned.
"As to price adjustments, it Is gen
erally agreed that the bottom has
been reached in many lines, and as
soon as people in general realize this
buying will be resumed and business
activity will show a corresponding
Improvement. There is already an
improvement noticeable, and it is ex
pected that this will continue
throughout the coming year. The
improvement will, of course, depend
largely upon the extent to which
marketable commodities are moved
and the credit which is at present
tied up in these commodities thus re
leased for use in other directions.
;"The steps which are being taken
to build up, our foreign trade in the
shape of the organization of large
export financing corporations Indi
cate that we a.r- approaching an era
of prosperity which will have a firm
foundation and will prove to be a
much more healthy prosperity than
that which we have experienced dur
ing the last two or three years.
General Business Improves.
Edgar H. Sensenich, vice-president
of the Northwestern National bank,
"Our advices from eastern industrial
centers would indicate that general
business is improving. Inquiries for
merchandise are increasing, indicat
ing that merchants' stocks are get
ting low. A number of important in
dustrial concerns have resumed opera
tiens and the employment problem is
less severe.
"The movement of raw products is
still sluggish, due to some extent
tu inability to finance foreign pur
chases. Several of the recently or
ganized financial corporations are,
however, rapidly getting into a posi
tion to make large advances on for
eign merchandise accounts, and early
commitments in this connection may
be expected, which will undoubtedly
have a very favorable effect. The
market for copper, cotton and wool
and for grain and other food stuffs
will strengthen materially.
"The Pacific northwest is bound to
feel any improvement in other sec
tions of the country, and we regard
the outlook here as favorable."
Nation Awakens From "Spree."
"Business of the nation has been
suffering severely from a case of
over-indulgence," said C. C. Colt, vice
president of the First National bank.
"It has awakened from a somewhat
prolonged 'spree,' quite nervous- and
grumpy." We all have had our wor
ries over the situation and have been
'whistling in the graveyard to keep
up our courage," hoping always that
the worst was over. At times our
hopes seemed not well founded, lor
we kept getting fresh shocks and the
convalescence seemed unduly pro
"Doctors tell us the patient himself
must have a certain amount of confi
dence if he is to recover and this con
fidence on the part of the American
people has been somewhat lacking
during recent months. There are
many signs now that the crisis has
passed and this is backed up by the
fact that the terrific strain on busi
ness and on credit has been endured
without a collapse and a panic, which
at one time seemed to threaten.
"A few of the potent factors indl
eating recovery may be named:
"A very heavy liquidation of com
modules nas taken place. The re
cent decline in values the most
abrupt in two generations at last
has begun to stimulate buying, which
has been stagnant for nine or ten
months. This will help to solve many
of the unemployment problems.
"Inventories of industrial lines
have been readjusted safely and op
erating expenses reduced without a
serious loss in efficiency. Important
steps are under way to re-establish
foreign credits and thereby provide
a market for our surplus products.
The United States possesses more po
tential wealth than any country on
the globe and as a foundation for real
prosperity is as sound as the most ar
dent optimist could hope for.
"Great problems must be met in a
great way and, although it is silly to
eay 'all Is well' and let it go at that,
there are, nevertheless, plenty of
sound reasons why we should face
the future with confidence and courage-Shrinkage
Reaches Loir Levrl.
'In attempting a forecast of the
year 1921, it might be Interesting to
briefly review the year just past,"
said J. .C. Ainsworth. president of the
United States National bank.
"We all know that 1920 opened on a
Mgher scale for every commodity,
following the inflation of the two
previous years, and not until the early
spring, when the federal reserve
board foresaw the dangers of further
credit lntiation, and curtailed credits,
did advancing prices reach their peak,
and then only began the decline with
a further tightening of money, fol
lowed by the so-called 'buyers' strike.'
The tremendous shrinkage in values
came largely in the last quarter of
1920, when many articles, declined be
low pre-war prices. This continued
to the actual close of the year, after
which an almost immediate improve
ment was noted, not so much in price
recovery, but in actual sales, and a
further Improvement has been noted
since February 1. '
"Actual suffering always follows
stagnations when no sales are possible
at any price. This stage we feel we
have successfully passed., and only a
. few days ago a New York banker
stated that there were more buyers
in New York today than for the last
IS months.
Foreign Exchange Is Drawback.
"David R. Forgan of Chicago says
the foreign exchange situation is one
of the hardest obstacles to surmount,
ut the $100,000,001 foreign finance
corporation, just formed, should
jreatly improve the situation, and he
further states that if the debt of our
oilea to this country could be funded
In a long-time, moderate-interest-bearing,
tax-free bond, guaranteed by
the United States government, and
sold in this country, it would be a
long step in re-establishing normal
conditions. The change in the ad
ministration will also be a great
factor for a better senitment in busi
ness. "The recent decline in values has
been more abrupt than any during
the last 0 years, and thanks to the
federal reserve system, we have
safely, weathered the storm and we
are all looking to the future with
The business barometer shows
unmistakable - signs that the
worst of the storm Is over and
that we are due for fairer
weather. Frederick Greenwood,
'manager Portland branch fed
eral reserve bank.
The Pacific northwest is
bound to feel any Improvement
In other sections of the country,
and we regard the outlook here
as favorable. Edgar H. Sen
senich, vice-president North
western National bank.
We are all looking to the
future with cheer and confi
dence J. C. Ainsworth, presi
dent United States National
Slowly but surely all difficul
ties are being surmounted and
pessimism has given way to op
timism. Edward Cookingham,
president Ladd & Tilton bank.
The records of this bank
show an increase of deposits
over one year ago. C. B. Sewall,
vice-president Hibernla Com
mercial & Savings bank.
The period of excess profits
Is over and business must grad
ually settle upon what is de
scribed as a normal basis.
William A. MacRae, manager
Bank of California.
Citizens of Oregon should look
forward to the future with con
fidence. F. C. Malpas, manager
Canadian Bank of Commerce.
There are plenty of sound
reasons why we should face the
zuture witn coniiaence ana i
courage. C. C. Colt, vice-presi- I
ad- I
dent First National bank.
to those which inevitably follow such
cataclysms. Iast year there were
periods when gloomy forebodings in
financial circles predominated and it
seemed as if we were facing a con
dition bordering on financial disaster.
but American bankers and captains
of industry are men of courage and
resourcefulness and the American
people possess those qualities of good
sense and equanimity which have
made this nation a great democracy.
"Slowly but surely all difficulties
are being surmounted and pessimism
has given way to optimism. We
still have some rough pieces of road
to traverse, but the longer we con
tinue the further we are getting
away from our troubles.
"As a member of the board of di
rectors of the federal reserve bank
of San Francisco, I have observed the
manner in which the federal reserve
systim has functioned and I am con
vinced that lacking the powerful sup
port of a great central banking sys
tem, there would have been a con
dition bordering on financial chaos
following the signing of the armis
tice. "Since the first of the year I have
seen-many annual balance sheets of
business houses, as well as agricul
tural producers, and I find In them
universal recognition of the fact that
the values of the war period have
crumbled. In some quarters realiza
tion of this fact came slowly, but once
fully understood it has had a bene
ficial effect, on the situation and has
assisted In the process 'of liquidation.
We still have problems to solve, espe
cially in connection with our foreign
trade, which has grown to be far
greater than that of any other coun
try. Our productive power has be
come so great that we cannot enjoy
national prosperity unless we can
sell the world part of what we produce.
"Congress has passed an act known
as the Edge law, by means of which
foreign trade can be financed and
already a powerful corporation with a
capital of $100,000,000 and a potential
loaning capacity of $1,100,000,000 is in
process of organization, for the ex
press purpose of providing funds to
market our products in foreign lands.
This company will operate under the
supervision of the federal reserve
board, and Its stockholders will be
composed of banking and business in
terests from every section of the
country. It is important that the
business men of Portland co-operate
far as possible in this movement
in order to extend and perpetuate the
foreign trade which this port is capa
ble of developing. However, a re
vival of the country's foreign trade
is dependent upon the stabilization of
the international political situation,
which is still in a complex state."
February la Quiet Month.
"February is always a compara
tively quiet month," said C. B. Sewall,
vice-president of the Hibernla Com
mercial and Savings bank, "but a
comparison of the volume of business
through the clearing house for the
first week of February this year
shows a decline over the same period
last year. This, however," can be ac
counted for partially by the reduc
tion that has occurred in commodity
prices. There Is a general feeling of
conservatism and hesitancy In buying
on this declining market, but the
thought is general that this hesitancy
is but temporary and merely awaits
the stabilizing of prices and resump
tion is expected in a matter of months.
Already this has occurred in certain
commodities and buying has resumed
where shelves were empty.
"The high freight rates have af
fected sales of lumber and many mills
are closed; however, the stocks in the
yards of the middle west are depleted
and buying must be resumed '"at an
early date. '
"Collections are reported slow,
whereas the records of this bank show
an Increase in deposits over this day
one year ago, two-thirds of this in
crease being in savings deposits.
"Undoubtedly Portland has ridden
through this deflation period , more
easily than any of the coast '.cities,
due to the soundness of her institu
tions and to her recovery of shipping
that was diverted from her during
the war.
"The buyat-home movement that
has been instituted is a good one and
should be adhered to for the commu
nities' self interest."
W. - A. MacRae, manager of the
Bank of California, said: '.
"The world is suffering ,from the
dislocation of commerce. Industry and
finance as a result of the war. The
period of excess profits is over and
business must gradually settle into
what Is described as a normal basis,
which means lower prices for raw
and manufactured products and for
ail the factors which enter into their
"The last six months have been
what is called a 'buyers' market.'
The last month or two markets for
all the basic products of our section
have been almost lifeless, due to the
hesitancy of buyers to satisfy them
selves that bedrock had been reached.
This situation causes delay, neces
sarily, but I am informed that during
tne past week Inquiries nave been
more numerous than for a month or
more for lumber, canned goods, etc..
and tt would be reasonable to believe
that recovery of normal activity will
De slow Dut gradual, depending on
the readiness of sellers to accept the
situation, in many cases involving
serious loss which the owners of
products are unwilling and sometimes
unaDie to accept until forced uoon
tnem. it is useless to shut our eyes
to tacts; the best way Is to face
There have been few failures so
far. owing. to the fact that the banks
generally have carried the burden.
There Is, however, a limit to what
banks can do in this way and in
order that the wheels of business will
continue to revolve, it is necessary
that products continue moving Into
consumption. I believe that this will
gradually come around during the
next few months, but I do not be
lieve that war-time prices can be
obtained for any of our products and
that the shrewd merchant, or farmer,
wilt take time by the forelock and
adjust his affairs to existing condi
tions." Thrift Lends to Stability.
"Citizens of the state of Oregon
should look forward to the future
with confidence," said F. C. Malpas,
manager of the Canadian Bank of
Commerce. "The state is rich in the
products of the soil, the forest and
the sea. These products in abundance
have during the past few years,
through the ports of this country,
been exported to Europe, and other
parts of the world. Because, of the
demand exceeding the supply econo
mic laws raised the cost of produc
tion, and therefore of values of these
products. When the demand slack
ened and finally closed, it was natural
that prices should return to what
they were before the commencement
of the war. Manufacturers, retailers
and exporters, together with growers
and raisers of commodities of the
state, are now holders of large sup
plies which must be distributed
throueh the usual channels, and will
brine larce sums of money Into the
"I think the future of the state may
be regarded cheerfully by us all, espe
cially those who are thrifty; In fact
thrift should be a part of the motto
of every citizen at the present time.
Action of the federal reserve bank
and other banks has placed the fl
nances of the country on a sound
basis, and legitimate borrowers do
not find a lack of willingness to as
sist by the banks of the country.
"I Tepeat, therefore, that with
thoughtful attention to all matters as
they come forth day to day, the year
will see a liquidation of the sur
plus products to which I have re
ferred, and difficulties met with a
stout heart will disappear in good
time, not as quick'ly as we would
iThe Owl Drug Co.
"Better Drug Stores"
- -
An Expert K
of Rubber
intelligently buy and sell articles made of rubber, an expert '
knowledge of raw materials, processes and the finished product is
necessary. In The Owl Drug Company Purchasing Division
there is an expert who makes every known quality test before an
order for rubber goods is placed and again before any shipment
is accepted. His knowledge is the customer's protection. In
every Owl Drug Store Rubber Goods Department there is
always a competent woman nurse at your service.
Dr. W. T. McElveen Describes Spot
Where Emancipator Was Born.
Details of Abraham Lincoln's early
life, the countrv In which hn Hub1
j and the ancestry from which, in some
mysterious way, he drew his great
power, were taken up by Dr. T. W.
McElveen of the First Congregational
church in an appreciative talk be
fore the members of the - Lincoln
Memorial society yesterday afternoon
a- the library.
Aoranam Lincoln am not come
from the poor whites of the border
states," sa'd Dr. McElveen. "His an
cestry was from cultured Virginian
stock, but from stock which was dis
integrating rather than progressing."
Dr. McElveen spoke from personal
knowledge of the Kentucky country
la which Lincoln was born and of the
people among whom he was first as
sociated. Particular praise was given
tc the character of Lincoln's mother.
Resolutions of condolence were
adopted by the society for the family
of Charles J. Sohnabel, member and
formerly president of the society.
Rubber Goods
Face Bottles (half pint) 75c
Ice Caps., $1.25 to $1.75
Ear Syringes .25c to 50c
Bulb Syringes .$1.00 to $2.50
Nasal Syringes 35c
Va'ginal Syringes. . . .$1.25 to $3.50
Breast Pumps 50c and 75c
Medicinal Atomizers. . .75c to $2.00
Medicine Droppers 5 c and 10c
Ring Cushions for Invalids
at $2.50 to $3.50
Rubber Sheeting, various widths. .
yard.... $1.25 to $2.50
Heel Pads, pair 25c
Crutch Tips, pair 15c to 25c
' Finger Caps, each. .5c
Bath Sprays $1.50 to $7.00
Shower Caps. ........ ..... . 25c
Sanitary Aprons. . . . ; .50c to $1.00
Doily Belts. . . .... .65c and 75c
Five-foot lengths; for Fountain
Syringes and Combinations,
each. ' 35c and 50c
Five-foot lengths of Tubing and '
three hard rubber attachments, to ;
make a "hot water bottle into a
Fountain Syringe. . .$1 and $1.50
A Six -Day Special Sale
A stock-reducing effort which means
splendid saving opportunities:
Hot Water Bottles
They .are all seamless and guaranteed against imperfections.
$1.39 "Comfort" Hot Water Bottles (2-qt.) 89c
$1.75'"Lastlong" Hot Water Bottles (2-qt.) . . .$1.29
$2.00 "Lastlong" Hot Water Bottles (3-qt.) . . .$1.39
$2.50 .Todco" Hot Water Bottles (2-qt.) $1.89
$3.00 "Todco" Hot Water Bottles (3-qt.) $2.29
Fountain Syringes
All have rapid-flow tube with patent
shut-off and three hard-rubber attachments.
$1.39 "Comfort" Fountain Syringes (2-qt.) . . .
$2.00 "Lastlong" Fountain Syringes (2-qt.) . .
$2.25 "Lastlong" Fountain Syringes (3-qt.) . .
$3.00 "Todco" Fountain Syringes (2-qt.) $2.29
$3.50 "Todco" Fountain Syringes (3-qt.) .... .$2.49
..89c : ;t; 3:: r.
$1.39 RHrjJ
$1.59 vH: XW
Toilet Articles
Made of Rubber
Rubber Sponges 10c to 75c
Massage Brushes ... . . ,25c
Cupping Ciips for Massaging. . . ,50c
Chin Bands 50c
Atomizer Bulbs.. . ...... 35c to 50c
Sponge Bags. . . ...50c to $1.50
Rubber Goods
For the Baby
Pacifiers 10c, 15c and 25c
Teething Rings 1 0c
Rubber Toys 35c and 50c
Solid Rubber Balls 10c and 15c
, Nursing Bottle Caps 20c
Nipple Shields 15c
Nipples 5c each; 3 for 10c
Infants' Syringes .............. 25c
"Jiffy" Diapers 65c
Silk Elastic Goods
Silk Elastic Anklets, each $5.00
Silk Elastic Knee Caps, each.. .$5.50
Silk Elastic Leggings, each. . . .$5.00
Three-quarter Hose, each $6.50
Bandages for Sprains., ,85c to $1.25
Abdominal Supports. .$5.50 to $7.50
Elastic Trusses... . . $2.00 to $3.50
Pacific University Classes Choose
Officers for Year.
Grove, Or., Feb. 12. (Special.)
Tommy Fowler of Rainier was chosen
president of the senior class at the
class elections held this week Mr.
Fowler is a four-year letter man in
football and baseball, and a two-year
letter man in basketball.
Other officers elected were: Mar
garet Marsh of Forest Grove, vice-
rresident; Irene Bilbrey of Multno
mah, secretary, and Willie Cady of
Beaverton. treasurer.
The other classes also elected of-
f!cers with the following- results:
Junior Ralph Jack of Portland, pres
ident; Edith Weaver of Forest Grove,
vice-pres dent; Marian Bates of Gas
ton, secretary, and Manila Crabtree
if Forest Grove, treasurer. Sopho
more Albert Schneider of Sacra
mento, Cal., president; Harry Kunkle
of Forest Grove, vice-president; Lucy
Morse of Portland, secretary, and
Harry Broderson of Forest Grove.
III T T T rnososlsk
j. u. xm vastauc
Syringes 'Wgt
The medium through which "internal SfcStlsiv.
baths" are given. This method of jVX
keeping well is now well established. ffC
Free booklets and information at any (j
1 1 Uwl Urug Store. 11 V4ilijt7J "ot Water Bottles with the attachments necessary
I J ' Elastic Trusses $2.00 to $3.50
I- , - Y;jEyj $2.00 "Comfort" Combinations (2-qt.) .. .$1.39 J
The Sorbo Sponge J $2 75 Lastlong combinations (2-qt.) . . . $2.19
New. but not so new that it is an ex- - jftltit $3.00 "Lastlong" Combinations (3-qt.) .. .$2.29 Cnvfr fnr 111
periment. It is a rubber sponge which VS., , , Vy (,nn 1(T , n ,. .. i ca VAJVers 1U1 1
has all of the virtues of the sea products , WT $4- Tdc Comb;natOI C2-) $2.69 Water BottleS j
and many of its own. Lasts longer, has $4.50 "Todco" Combinations (3-qt.) ..... $2.89 I
a more invigorating effect and is im- - Cloth Bags which temper and even the 111
proved, rather than harmed, by soap. I' ' heat and, at the same time, protect the j
Six prices from 40c to $3.50. bottle ................ .35c I
I The Cdy Illative hzm, r. P.s..o.r.cJfl For Indigestion
25C - 7t W. W. Brown, Manager . SjrW? 5c I
Y&n' Broadway and Washington Streets. Marshall 20M pf&f ' g
) Mail Orders Given Special Attention . , I
Rubber Gloves
They are recognized as a necessity in
every household. Prices on , good
quality SEAMLESS rubber gloves
start at 65c a pair. A heavier quality
sells at $1.00 a pair.
treasurer. Freshmen Norman Mace
of Port.and, president; William Harri
son of Forest Grove, vice-president;
Dorothy Linklater of Hillsborc. sec
retary, and Ellis Stebbins of Camas,
Wash., treasurer.
Land Settlement Commission Takes
Farm Xear Prineville. ;
PRINEVILLE, Or., Feb. 12. (Spe
cial.) The Oregon state land settle
ment commission has authorized the
purchase of 60 acres of the L. D. Clay
pool farm, two miles north of Prine
ville, to be used as a model state
farm. The site was Inspected some
time ago by Professor Scudder of the
Oregon Agricultural college, who Is
general superintendent of the com
mission. Plans are being made to start work
on the modern farm buildings and
other improvements in the near fu
ture. This farm is one of five being
bought and equipped by the state.
Later it will bo sold to an actual
settler on easy terms. The purchaser
will be assisted in working out crop
rotations and farm plans by the agri
cultural college and the county agent
For Sale
6-38 Fine. Condition
Just Painted
Inquire Owner,
TeL Woodlawn 2305
Salesmen Wanted
We have splendid positions for four or five
experienced Phonograph and Piano or Sew-.
. ing Machine salesmen who have been suc
cessful and who. can go out in the city or
suburbs or into the country and get the
business. Only those with experience and
references to show that they have been
successful in' the' past need' apply.. Good
. salary and commission basis.
Morrison Street at Broadway
Spring Sale of Wa
II Paper and Paints
TO THE WALL PAPER CONSUMER (One Room or One Hundred): When you are in need of wall
paper, no matter how large or small the amount, purchase it at the store that specializes in wall papers
and serves you the best goods on the market at about 50 less than any dealer in the state. Note prices.
7V2C I' oGLLEt 1 5c
Less Than lea Yard
Can You Beat It? Choice of Nine Patterns Too at 15c Double Roll
10c Single Roll 12V2c Single 15c Single 25c Single
20c Double Roll 2-Bits Double 30c Double 50c Bolt
Choice of dainty stripes Big assortment at this Papers' suitable for most Choice of some beautiful
, . .f . popular price of 25c a any room at this price, papers at this medium
and figures at these low 0ft with pretty cut.out and $2 or $3 will price in most any color
prices. borders to match . paper jt. or design you want.
MOIRE CEILINGS Washable Varnish Tile Best Duplex Oatmeal Beautiful TAPESTRY
35c 75c 60c 75c to 7
For 16-Yard Double Roll For 16-Yard Double Roll For Full Bolt, 30 in. wide. For Full Bolt
PAINTS I $4 House.Paints Reduced to $3.25 per Gallon
for Less J $5 House Paints Reduced to $4.00 per Gallon
; : Wall Paper Headquarters
108-110 SECOND STREET, PORTLAND Sample Book on Request