The gazette-times. [volume] (Heppner, Or.) 1912-1925, 1914-08-27
ADDRESS OF A. l.. MILLS.


exports freely from going abroad. l
confidently believe that within
month our foreign export trade will
again be on a comparatively normal
basis, or at least on such basis as
will permit foreign business to be
trnsacted by this country at hand
some profit.
In the meantime we bankers have
before us few weeks of somewhat
difficult financing. Harvest hands in
the fields must be paid in cash and
also the cost of transporting our
crops to the seabord. 1t can be done
and will be done with comparative
ease if the business people OF the
country have faith in our instltu-
tions, supplemented by a moderate
amount of patience. If, however,
the business men of the country,
such as see before me now, become
excited and each man endeavors to
rush in ahead of his neighbor, force
collections and grab all that is in
sight, the situation will become more
complicated. Even then, and in
spite of fools and alarmists, the
banks of the country will be able to
finance the harvests and within a
short time make possible bountiful
returns for our crops.
In 1907, should not have dared
to have spoken so confidently con-
cerning the situation, as at that
time we we're laboring under an an
tiquated and archaic system OF H.
nance that was utterly incapable OF
expanding with the needs OF com
merce. Thanks, however, to the Al
drich-Vreeland Currency Bill that
was passed in 1908 and extended by
the present Congress it becomes pos
sible for the banks of the country to
ioin together in Currency Assocla-
tion and obtain issues of currency
for which Uncle Sam" acts as the
redemption agent. The limit of this
currency was first put at five hun
dred millions, but within the past
few DAYS this limit has been taker
off and the Secretary of the Treas
ury, Mr.. McAdoo, is permitted in his
discretion to allow this issue to be
nut out in an unlimited amount
Such Currency Associations have
been formed in New York and Chi
cago and, | believe in other large
centers. Already the strain upor
!, the financial institutions OF these
centers has been so materially les
sened that our recent telegram!
from those points state that business
again is proceeding normally.
1t is not believed by the bankers
of Portland that it will be necessar,
to issue any Vreeland currency IL
the Northwest, since our correspon
dents in the east assure us that the.
, can forward US an ample supple o
currency from their Association
without difficulty. Nevertheless, th'
Portland Clearing House believes i
to be the better part Of wisdom II
, perfect such an organization in Ore
gon. To that end the national bank
| of Portland, associating with them
: selves a few of the banks OF neigh
; boring cities, have taken the neces
7 sary steps for such an organlzatlol
by passing in their different board
: of Directors, the proper resolutions
: The preliminary steps have all bee
taken and we now but await receipt
i from the Comptroller of the Cur
lrency, of the necessary forms to b
filled out before finally completin
the organization and making avail
able an amply adequate allotmen
of what, perhaps, | may call Vree
land Currency.
incidentally, it may be OF lnteres
to you to know that such Currenc
= Association must have in 1t at leas
n ten national banks, with a combine
capital and surplus of at least nv
c uOlldl hC p cPcD
land Association has combined cal
9 ital and surplus of eight million
eight hundred thousand dollars, b
G reason of which we are permitted
receive over eleven million dollal
of Vreeland currency for which "Ul
Gle Sam becomes the responsib
q payer. This sounds like an immenf
!, amount of easy money, but neye
4 theless there are restrictions place
about its issuance that prevent a
unhealthy imitation. The banks
= the Association applying for any
this currency must hypothecat
bonds or commercial paper matu
ing within ninety days or fol
e months, such security to be approve
Il by the Executive Committee OF tt
{. Currency Association and finally /