The Oregon daily journal., November 13, 1907, Page 4, Image 4

THE . OREGON DAILY I JOURNAL, PORTLAND, . WEDNESDAY EVENINO. NOVEMBER 13, 1907.
ii . n i i now ' ... ... I
1
WHEAT flO VlfilEHT
BANKS' BIESIS
Portland Honey IVas Mar
keting More Inches mien
' r- the' Flurry Came. .
STRAIN GREATER
HERE TIfAX ELSEWHERE
Load of llesponsJbilltlra on Local
s ' Institutions Much Heatier Than In
Other Coat Cities Atmosphere
Here Now Oared.
Expressions of pained surpris have
been heard In the lut rtw aays regara
ln the suspension of bank la th city
of Portland, which reputed to b
th Gibraltar of north coast finance.
It la now frequently said tbat Portland
la aot bowing up favorably In eompar
. laon with th bank of other cltlea In
: th Paclflo northwest Thar la a good
rtaaoa for tha aventa of th laat few
weeks la financial quarters.
Jt should bo remembered that Port
land' responsibilities ara a great deal
heavier than thoea of the other bank ni
' cities. With tha duty attending the
marketing of th wheat crop of the
, .northwest through tbia port oom.a u.
'. correlated duty of furnishing the finan
cial alnewa through Portland banka for
' the cashing of accommodation paper in
'connection with the crop movement
' ' Tha financial stringency tame on ud
denly and unexpectedly, at a "me when
the Portland banka were In the mld.t of
the crop movement. Both of these mo
mentous aventa occurring 0""'r.'"
the real troubl underneath the Portland
'money atringency.
, Basilar Interests Safeguarded.
' . . . . . i I ... lliut I. .1,1
not the wheat moving banka been bur
denad to their capacity with that taak.
"they would have been In poaltion 10
' finance aay ordinary commercial money
..trin.nrr easily and gracefully. Th
were not found wanting when It came
to tha neceaeity of taking are of the.n-
selves ana uieir wnwi -""
they were compelled to recognise the ne
resTlty of saf guarding their Individual
banking interests at tha aacriflce of
averr outside Intereat.
Tn, Merchants Katlonal bank was not
a wheat moving bank. It was more
' Strictly a mercantile bank, and Its paper
was almost entirely of a commercial
character. It had but a limited amount
k i. .( Ik. nature reaulred as e-
VI VJWtm w m. - .
1 eurlty for "wheat money.' as the new
clearing house bUls are termed. Its ca
pacity o secure this money for imme
dlte use waa amall compared to the car
wwUty of th wheat moving banks.
Slch are very large bolder, of bond
of tha Al class. Including state, city,
county, school and government bond.
"We consider that tha clearing house
bills now In circulation kre as good as
government bond-secured currency
said a clearing house official. The
Merchants had not a large amount of
. 4he bonda of a class required to lecure
this currency. Tha other banks have
, piles of such bonds and can bacK up
Immense amount of this kind of cfr
lating medium.
' ' Hacked rrom Other Quarters.
i When-the Merchants National found
Itself d.-aioed of currency and working
capital for dally use. It waa also up
against tha holiday conditions existing
Lire, and could not call upon Its clients
far money due on demand notes. 1 he
client who had borrowed was perhaps In
equally heavy seas, and could only re
ply
niORGAri, THE IDOL
OF WALL STREET
Magnate Is Looked Upon as
the Financial Savior of
His Country.
SOME TJFLVfiS VET TO
. BE DONE FOR IT TI KE
So
i i .a Aniliorltr Now
A It HI "fa, ' '
Great Thai Needed lleforms With
His Hacking ( an He CurrlMl to
Fruition.
the.
whole
HHld
1f..w .ipoat In fflCt
m, . v .' v..ik m.iv 1
rinniuini .rw . -- ...
i.,iv, no Murgen mud. so pr.-m in i
1"."?.. in hems bestowed by
i... ti.iu trt nf Manhattan Ulund upon
i ii.riniii Morgan, because
ronuunrra sucie..
attending
of
his
the
ef
rT,u ' " . . aso io stay the
panic which at one time thn
hurl to destruction the who
an's library at
threatened to
banking
vntom of Ihe rnHtronoll
.. .. fr,m Mr Moral
Thirtv-.irhih iret and Madlaon ave
nue. ratfier man j.u.n
""nier of Wall and Hroad streets, that
the Vamc of 1 'J07 hat been held in
check and finally stopped.
Situation Most Sramatlo.
Nothing In the financial history of
.1,1. ...,,i,rv haa been mora Important
or more dramatic than the all-day and
all-nlatit conferences in Mr. Morgan's
library of the iesdlng bankers ana
financier of New York, who, led by
the grlz.led veteran of many financial
buttle. devled means and laid plans
for saving the Industrial and commer
cial fabric of the nation.
The UevJew and Outlook column in
the Wall Street Journal of November
; hrxs the following to aay of Mr. Mor
gans mrvlcin during the late crlala:
"No one can estimate the enormous
valuH ir the services which Mr. Morgan
y during
He has been dln-
an
rcu'
how can
TEou bankers are not paying money;
. ..v ua to say you money?
commercial debtor replied to
the banlfa plea for payment of not s,
even though they were secured by col
lateral paper, knowing that the banker
iould not well Insist upon Immediate
settlement in tne iac. 01 "i """:
clal condltlona. Everybody is playing a
waiting game, and financial transac
tions ' any magnitude await a general
ciisn iack to normal condltlona before
asklnu or responding to calls for settle
ments: While tha holidays have proved
to be a great boon to the banking inter
strgeneraliy on tha coast It is doubt
ful If they wera not more harmful than
beneflrdalV th. Merchant-" Ntlonal.
The atmosphere la believed to be
clearer in financial Portland today than
St Ey time In the last two weeks The
public has absolute confidence In tho
remaining banks, and there is no prob
ability of any further disturbance.
Heedaohe end Sfcnra-rta tram Cold.
LAXATIVE BROMO Quinine, the world wlfl.
Cold and Grip remedy remove. r
foU nam, took for lgntur E. W. Gtot. c.
Horse Thieves in Idaho.
- Boise. Idaho. Nov. 13. Two men giv
ing their names as Arthur Fairfield
and Frank Waldron. who claim their
home are near Nam pa. Saturday hired
. team and buggy from a local livery
-stable, drove to Caldwell and, it Is al
leged, sold the outfit to Liveryman
Campbell. It waa soon learneu by the
owners that th team had been sold
t Caldwell and officers were put on
jha trail of the-two men. They were
rrterl. hrouerht back to Boise and
a-, now In Jail to await a hearing.
U
li.i performed Tor the countr
th nat three weeks. He has
disputed leader who haa stood between
the business of th country and dls
uater. Can Oo Still farther.
"Sow Mr. Morgan having performed
thli servloe haa It within his power to
go till further and make to Wall street
and the country a contribution greater
than any other financier has made since
the days of Alexander Hamilton. His
name is already written In the history
of American finance In large letters;
but he has the opportunity to put him
self among the number of the few Im
mortals, if he will follow up the service
which he has already performed by
taking the lead In the establishment of
certain mighty financial reforms.
'Already In the financing or the panlo
something has been done in this direc
tion. Most notable of all has been the
elimination from clearing-house banking
of exponenta of sensational and specu
lative finance. Something more Is now
needed. It Is one thing to face and
bent down a great panic, but it Is a
still higher thing to effect such
changes and devise such methods a
will make other panics less common and
less dangerous.
"Mr. Morgan's prestige and authority
ara now ad great that any stand which
he may take in behalf of financial re
form can be put through, whereas at
some later period It might be Impossi
ble even for him to do much in that
direction. We want In thla country
some system of emergency circulation
to be Issued either under the authorltv
of th secretary of the treasury or of
some reoresentatlve bankina- Institution,
like a federal clearing-house or a cen
tral Dank.
"We need a union of the banks and
trust companies In the clearing-house
under satisfactory arrangements as to
reserves, ana witn the publication o
a bank statement which sliould be com
prehenslve, giving to the publlo a faith
fliers
Piano House
Announces the First
PIANOLA
RECITAL
Of the Season of 1907-8, to
Be Given
FRIDAY EVENING
Noreryber 15, at 8:30
At filers Recital Hall
Park and Washington Streets.
MR. LOUIS P. BRUCE
At the Pianola,
Assisted by
MISS KATHLEEN LAWLER.
Soprano.
Complimentary Tickets for Re
served Seats May Be Secured
by Application at any time
Previous to Concert at
353 Washington, Corner Park.
CALLS DISTRESS
HYSTERIA PANIC
Wall Street Journal, Defend
ing Looting Stock Job
bers, Gives Its Version.
SEES BRIGHT SIDE
TO SUDDEN FLURRY
Present Conditions Brought About
by Numerous Wobbly Features for
Year Past Forgets to Put Any
Blame on Frenzied Fakers.
We need a better regulation of the call
money market so as to prevent the
extravagant fluctuations of interest.
Changes in Sxchanga Methods.
"We need such changes in stock ex
change methods of clearances as shall
make the Inevitable and leirltlmRt
speculation of Wall street leas burden
some upon the money market. We
need to eliminate the abuses of banking
competition, and especially to put the
practice of payment of Interest upon
deposits, particularly those of reserve
institutions, on a saner and safer basis.
. w,.need. to consider the de
sirability of Increasing the rates of
all street martrlns, and also to look
Llt?.th', 8UDi0r f drawing some proper
distinction between cash deposits and
check deposits, cash payments and
check payments.
"These and other banking reforms
are vital to the future progress of the
country Now Is the time for some
5lr,?nE 'ea1-,,111" Mr. Morgan to un
dertake them.
CHARGES OF FRAUD
IX RIG WILL CASE
V 1 V
V J.
No matter how high
you go, you can't get a
better hat than our $3
"Beaver." It is built to
stand the rain, and is
just the hat for the Ore
gon man.
' If you want to make a
spread, try our $2.50
Umbrella richly
carved handles.
LION
ClotlunQQ)
- GasKuhnPitp'
, ; ICS and 168 Third St
Mohawk Building
(SpMlil DUpitch to Th Jonrnil.)
Olympia. Wash.. Nov. IS. During an
entire day's session of the supremo
vu.,., ' up wun argument on the
merits of the John Sullivan million-dollar
estate case, from Seattle, very
strong language was induced In by at
torneys. Assistant Prosecuting At
torney R. W. Prigmore represented the
state of Washington and King county
in the endeavor to have the estate
escheated; Walter A. Keene represented
the claimant, Cornelius Sullivan; W T
Dovell represented Administrator Ter
rence O'Brien; William B. Allison rep
resented Margaret Sullivan nnmnnH
and George Don worth ami A. B. Howe
represented Corcoran and Callahan un
hold the upper hand in the big contest.
Charges were freelv made or frmt.i
collusion and forgery. Most of these
were directed against the Interests rep
resented by Attorneys Donworth and
Howe. It was alleged that testimony
had been cooked up, documents and hIr
natures forged and other questionable
work done In the interest of different
claimants. All of the attorneys sDnt
most of their time in pointing out the
weaKnesn or rne case or each or the
other claimants represented, and this
fact was' commented on especially by
Attorney Prigmore in his argument fa
voring the escheating of the property to
the estate.
SUCCEEDS LOCK WOOD
OX DUBOIS' PAPER
(Rpfclnl rlptch to Tbn Journal.)
Bnise, Idaho, Nov. IS. Senator Frank
J. Cannon of Utah spent the day in
Poise in a hurried conference with
Wheeler S. Bowen. the new managing
e.Jitnr of Senator Dubois' paper, the
Idaho Scimitar, and with Mr. Arney,
business manager of that publication
Mr. Bowen Is a veteran newspaper man,
was formerly private secretary to Sen
ator Pettigrew of Sioux Falls, South
Dakota, and comes to tako the position
with the Scimitar made vacant by the
suaoen tragic death or R. E. Lockwooa.
lie Is an old friend of Senators Cannon
and Dubois.
"Hysteria panic" Is the very apt and
telling name applied to the present fl
nanclal disturbance by the Wall Street
Journal.
There have been many eruptions of
hysteria throughout the country, more
or less violent, during the, past year,
all of which were much less harmful
than the present manifestation, but all
leading up to It and all directly and
Intimately connected with It, thinks
this able advocate of vested Interests
and high finance.
Discussing the milder forms of hys
teria, political, financial and otherwise,
that have run their course during the
year the New York paper says:
"A few month ago, as a result of
hysteria on the east side of New York.
public school teachers were mobbed by
the Ignorant population because they
had adopted sanitary measures for the
benefit of their pupils; in a number
of states governors and legislatures
have made hysterical attacks upon the
railroads ana otner corporations; A
1'nlted States judge has inflicted 011
hysterical fine against a corporatloTi
wnicn naa violated law; even our
worthy president. In his zeal for na
tional righteousness and the establish
men of the square deal, had dellvcrod
two or three hysterical speeches; Hold
ers of securities got the malady and
hysterically threw their stocks and
nonrlH upon the market, with the usual
disastrous result; while lately the hys
teria was communicated to bank de
positors which resulted in the worst
manifestations of the malady.
Sees Bright Side.
"But all is not dark and forbidding
to the Wall street paper as is shown
ry the following list or favorable de
velopments which followed the article
on the "'Hysteria Panic:
"Much subsiding' of hysteria and con
siderable progress toward the restora
Hon of financial sanity and confidence.
"Strong cooperative measures taken
by the banks of the country for mutual
protection and for the safeguarding of
me ousiness interests.
"Kngagements of gold for Import, ag
gregating about 40,uuu,ouu.
"Liirge exports of American products,
a movement retarded only by the lack
of Hfl equate transportation and credit
iacmties.
"Enormous distribution of treasury
funds In the banks, amounting to over
sbii,immi,(hmi in the past two months.
"Kxtensive Investment buying of se
curities in small lots.
"Lower prices of export staples, thus
facilitating exports, and favoring In
ternational exchange, favorable to this
country.
"The sharp rally from the demoral
izing depression in copper.
remarkable statement by the
United States Steel corporation, show
ing enormous earnings for the third
quarter of the year, while the reduc
tion in unfilled orders is by no means
as much as had been anticipated.
"Steps taken by the Union Pacific or
segregating Its Investments in the
stocks of other companies, thus break
ing up the scheme of continental rail
road empire, this being in deference
Men pf Portland .
in i :
I'll II
IN
It's but reasonable to suppose that there would be a slight falling off
of business. The incentive now must be greater to induce men to buy
than at ordinary times. We haven't got a lot of surplus stocks, auc
tion stocks or bankrupt stocks we've only the stock of I. Gevurtz
C& Sons, a stock of the finest of hand tailored clothes for men. For
two days, Thursday and Friday, we offer the men of Portland an
opportunity that hasn't been approached by other stores, now or in
recent years. For frwo DAYS ONLY pick out the one you like best
Of all $15 and $17
Suits for ... .
Of all $20 and $22
Suits for ... .
mm
Of all $15 and $17
Cravenettes for
7 . MM
Of all $20 and
Overcoats for
Of all $20 and $22
Cravenettes for .
Of all $15 and $17
Topcoats for . .
Of all $20 and
Topcoats for
,22-. $12 J
. mm
BOYS'
Marked $3.50 . . .
KNEE PANTS SUITS
. $2.45 Those Sold at $4.50 .
$3.45
Seasonable, stylish clothes for men suitable for
dress, for street and for business wear, are the
garments included in this tremendous sacrifice.
Tomorrow and Friday at the House of Good Clothes
AXWATI WAS SICK.
When a man' Rava Via' aTwava wna
sick troubled with a cough that lasted 1 ,he country was suffering from an ag
to public opinion.
"The opening of the door for the en
tranco of the New York trust com
panies Into the clearing house.
"Sale by New York city of $30,000,
000 6 per cent revenue bonds to a syn
dicate of bankers."
Widely Different In Tone.
"No review of the situation should
leave out of account this fundamental
fact, that this panic differs widely
irom u$i or jxsa, in mat wnne then
I. Gevurtz G& Sons
ON YAMHILL
Vs.
INDUSTRIES ARE
UTILE IMPAIRED
Reduction in Manufactured
Articles but Nothing
of Unusual Order.
MUCH SYMPATHY
FOR WESTINGHQUSE
KccelTershlp, However, Has Had Lit
tle Effect on Business and Plant
Filling Many Large Orders
Huge Machinery.
for
all winter what would you think If
he should say he never was sick since
using Ballard's Uorehound Syrup. Such
a man exists.
Mr. J. C. Clark, Denver, Colorado,
writes: "For years I was troubled
with a severe cough that would last
all winter. This cough left me In a
miserable condition. I tried Ballard's
nurenouna oyrup ana have not had ,a
rlcultural depression, the west being
grievously poor and the soundness of
Lhe national currency being under a
cloud, we are now in possession of a
national strength which should be suf
ficient to enable us to recover quickly
from the heavy blow which has been
inflicted by the panic. Our agricul
tural conditions are splendid. The west
Is rich and prosperous as never before
Industrial conditions throughout the
United States while showing a quieter
tone than a few months ajro, are still
far from being panjey despite all that
has been said of recent date. To be
sure there has Been some tailing on
in orders for manufactured articles, but
this is always the case for this time
of year. Orders for fall and winter
are usually filled in late spring .or
early summer. This is the mldseason
in almost every line, so comparisons
are hard to make with nearby periods
and vet do Justice to present conditions,
Every day shows a clearer Sky In the
eastern financial situation. Call loans
and interest rates are decreasing and
are now almost at the normal point
for this time or year. Yesteru&y call
loans, were selling in New York as
low as 6 per cent. Then again money
Is much easier to Becure than it was
fw weeks ago at 100 Der cent.
While several corvcerns have been
nt into the hands or receivers in
the east, due to temporary embarrass
ment, their traae compares most ra-
orablv witn tnis time oi season in
previous year. The report of the busi
ness done by the Westinghouse Ma-
nine company In the rirst six months
f the fiscal year ended October 1.
shows that the sales were several hun
dred thousand dollars In excess of the
sales in the corresponding perioa a
year ago.
The steam turbine department alone,
i
Bankers and Lumbermens Bank
Corner Second and Stark Streets
PORTLAND, ORE.
CAPITAL STOCK, $250,000.00
OFFICERS
G. K. WENTWORTH President
F. H. ROTHCHILD. .1st Vice-President
JOHN A. KEATING.
H. D. STORT Assistant Cashier
PLATT A PLATT General Counsel
Id Vice-President and Cashier.
Among the Lumhermen Who Arc Stockholders Are the following:
sick day since. That's what it did for and the east has had a long period Of
CASTOR I A
Tor Infanta and Children.
The Kind You Hare Always Bought
JOHN W, BLODGETT. Grand
Rapids, Mich.
ARTHUR HILL, Saginaw, Mich.
W. W. MITCHELL, Cadillac,
Mich.
E. N. BALLING. Manistee. Mich.
W. H. WHITE, Boyne City, Mich.
J. WENTWORTH. Bay City,
Mich.
q w. EARLE. Hermansville,
Mich.
G. K. WENTWORTH. Chicago, 111.
N P. WHEELER. Endeavor, Pa.
G. F. -WATSON, Tlonesta. Pa.
A. W. COOK. Brookvllle, Pa.
W. B. MERSEREAU, Portville,
n. y.
L. J. WENTWORTH.
Oregon.
J. E. WHEELER. Portland. Ore
gon. C. C. BAKER, Portland. Oregon.
J. H. COOK. Portland. Oregon.
E. 8. COLLINS, Ostrander, Wash.
W. E. -WHEELER. Portville, N. T
444
t
:
t
!
:
t
ii AAAAA a
Portland.
says the New York Commercial, shows
an advance of 10 per cent over last
year and the stoker business was 18
per cent greater. The steam .engine
and gas engine departments held their
own.
The Westlnghoue receivership has had
little or no visible effect upon new
business. The company reports that
several good orders for turbine equip
ment have been booked within tha it
few days, among other orders two BD0
horsepower turbo-generators to ha in
stalled In the Imperial Steel works of
Japan
It Is a notable fact that In the atreaa
of the last week or 10 days only sym-
ainy ana aamiration nas Deen heard In
Baars tha
Signature of
7
inanolal circles for Georre Westlne-.
house. It has been pointed out time
and time again In the course of the
week that here Is an Instance of the
way In which a financial storm strikes
where the blow Is least merited.
"mere are rew men." said a banker
the other day. "who have done more to
create -wealth In this country or In
the world at large than has Mr. West
inghouse. : People ought to remember
that In the present situation Mr. West
Inghouse's credit is not Impaired nor
his business character impeached.' He
is ou of tha victims of tha ej10mlo
jrif0$&K WB.M. Uojb Pata W Tmkx BWilcojc V. R)
LWMBCR
EXCNANOI
BUILDIN0J
OUR NEW POLICIES OFFER ALL THAT IS BEST IN
LIFE CONTRACTS EITHER TO BUY OR SELL.
Low Non-Participating Rates High Cash Values
SUPERIOR INDUCEMENTS OFFER ED TO RELIABLE ACTIVE AGENTS.
Apply to mssa M. MAMW, Manage of Ag-sata, S14 tomb Exchange Bldf.
of distrust. It is. the credit that has
existed In all good securities that la
Impaired, not Mr. Westinghouse's in
dividual credit, Tha irony cf th sit
uation, though, is that this man who
has don so much for humanity should
be on of th Xlrst to receiv tbo
Wow;- -. : v.:.;;r'iit'-.iVv;,
u oruggists. j liquidation antedating- uis panlo,
' ' '