St. Johns review. (Saint Johns, Or.) 1904-current, 1914-08-28
A FINE ADDRESS
Continued from first page.

commerce demand III, Jne 1OTI-
land banks and their associates
will not hesitate to take out all
the currency needed for the pur-
pose of facilitating the commerce
of this section of the country.
Nevertheless, such circulation
will not be taken out unless the
pressure for its use becomes in
very great measure more severe
than it is today. 1t places a
liability upon each and every
bank in the Association that
bankers do not care to under
take unnecessarily, and is issued
at a cost that must eventually
become a severe burden on the
community.
One moving cause for the be-
lief of the Portland bankers that
we should 20 slow in issuing the
Vreeland currency is the fact
that the Federal Reserve Act
will shortly be put in operation.
The Federal Reserve Board has
now been organized, and they
are pushing forward rapidly the
organization of the twelve Dis
trict Reserve Banks. II is stat
ed that by Oc.obar first these
banks will be in operation. If
so. it will easily solve any exist
ing financial troubles and be far
less extensive TO the borrower.
As YOU know, the Reserve Bank
of this District will be located
in San Francisco, but we are u.s.
ing every effort to have a branch
established i'm Portland at as
early a moment as the parent in
stitution in San Francisco will
permit. Should, however, the
establishment of the branch
bank be delayed more than is
expected, nevertheless we shall
be able possibly, at some incon-
venience, TO transact our busi-
ness directly with the San Fran
cisco bank.
Incidentally, | wish to call the
attention of the business men Of
the community TO one change
that will ensue in our methods
of doing business after this
bank is established Commercial
paper proper for discount at the
Reserve Bank must have a fixed
date of maturity, and interest
must be taken out i'm advance.
It is within the possibilities that
when the reserve bank is in
operation a member bank will
be able to liquidate every dollar
of its commercial paper, provid.
ed such paper Is of the proper
character That means that q
properly conducted member bank
cannot suspend or fail.
Now the future! A man is a
fool who attempts the role of a
prophet but were TO venture
such foolhardiness, | should say
that the next year or two will
see in Oregon and the United
States generally, due TO the mis-
fortunes of others, such prosper
Gus conditions as never before
prevailed. In the end. however.
we cannot have such an enOr-
nous economic waste as this
great European war seems likely
to cause without materially
affecting the ability of those
nations 10 purchase our exports.
10 is as II yol had a country GUS
toner whose stock of goods was
destroyed bY fire and who wired
yol to replace the same at any
price. You might make a hand
some profit ON The the first ship
ment, but thereafter the coun-
try store keeper would be so
crippled that his purchases for
some time b come would be ma
terially le5sencd. So il seems
20 me win be the case with the.
nations of the world The great.
nations of Europe, by the des-
truction of life and property,
will be reduced 10 such poverty
that they will not be able to buy
the goods we have TO sell The
result necessarily will be stagna-
tion and depression i'm business.
On the other hand, as an Offset
to this forecast of the distant
future, is the fact that by the
war loss that comes 90 European
nations there will be open TO our
enterprise the vast commerce of
South America that now is uib-
utary to Europe. This should
and will be diverted To our ports
provided our merchants are alive
to their opportunities. This
commerce may i'm great meas
me, offset the loss of European
business.
Then, again may come to our
country another great and yalu-
able gain in the establishment |
of our Merchant Marine. Prior
TO 1861, the American Marine
was the equal, if not the su-
perior, of any Marine service i'm |
the world. but the Civil War des-
troyed it. BY the repeal of our
antiquated shipping laws that !
have stunted the growth of our
Merchant Marine, an opportunity |
comes TO us that will be of un-
told value if properly ayailed of. |
a