The gazette-times. [volume] (Heppner, Or.) 1912-1925, 1914-08-27


carried.
Second The ease with which we
withstood drain within six months, ,
of one hundred and forty-eight mil
lions of gold and the ability to with
stand further drain of one hun
dred millions.
Third: The remarkable strength
of the New York Stock Exchange to
absorb vast quantities of our secur-
tiles without making any perceptible
strain upon our financial institu-
tions.
Fourth: The establishment of
scientific and economic system. the
equal of any in the world. These
are the reasons why financial condi-
tions are sound today in this coun-
try. Practical economists believe in
them; bankers worthy Of the name
of bankers believe in them, and it
but remains to drive this belief home
to every business man in the country
to still forever the pessimist, who
now goes up and down the land
mournfully croaking about impend-
ing panics and by so doing disturb
ing business and spreading unrest
wherever he goes.
After what has just been said, do
you ask further why there is no dan
ger of a financial panic today. and
why we shall never again have such
a one as we have experienced in the
past?
It needs but a word in answer;
Due in the first place to the work
done by the Aldrich Currency Com
mission and, later, to the crystali-
alton of that work in the Federal
Reserve Act, we have now sound
financial economic system that
makes any serious financial panic
an utter impossibility. Tight money
we may have in the future, COM
mercial depressions we must and
shall have whenever speculation ex-
ceeds the bounds of prudence, but
financial panics-never again.
So much for the financial condi-
tions of the present and the future.
Were there time, I should like full
we'll to 60 into the details of the Fed
eral Reserve Act by which sound f.
nancial conditions are assured to us,
but l must omit doing so as, before
closing l wish to say word or two
concerning our local conditions and
how l believe the European war will
effect business interests in the north
west.
We are now harvesting one of the
most bountiful crops with which the
northwest was ever blessed: crop
that Europe and especially England
must have in order that their peo-
pies shall not starve. This crop they
must pay for no matter what the cost
may be. England appreciates this
fact and is bending every effort to
compass its safe transportation. The
British Government itself has an.
nounced that it will insure the skip
nounced that it will insure the ship
per and owner against any loss oc-
casioned by the European war, and
it but remains for our international
bankers to perfect arrangements for
negotiating the bills of exchange
drawn against these cargoes so that
they may be converted into caslr in
New York. This | firmly believe
will be consummated within the next
two or three weeks. When accom-.
rlished, the question is solved. and
with the solution, will come a flow
of English gold to our country in
greater volume than we have ever
witnessed before-a volume so great
as to materially stimulate every bus
mess enterprise within this country.
In the meantime, however, for the
next two or three weeks there will
be unrest and fears and excitement.
1t therefore devolves upon us all to
practice patience and maintain our
courage, for there is nothing to fear
in the future. What is true of our
wheat crop is true in like measure
to our meat, hops and other pro-
ducts
Your grouchy pessimist, ever seek
ing for fresh causes to whine about
is going up and down our streets
saying doubtless it may be true
that Europe needs our crops, but
if they cannot be shipp-
ed in safety from our ports they are
of no value to u.s." This is utterly
false, as l have attempted to show
you, for England must have our
grain and is prepared to pay the
price and bear the burden of the
war risks. That England is amply
able to do this is shown by the fact
that when the European war first
broke out, as first protection
against a business excitement, the
Bank of England raised its rate of
discount to eight and then to ten per
cent, and declared a few days bank
holiday. When it was seen by the
English financiers that there was no
need for undue alarm, the Bank of
England's rate of discount fell rap
idly to six per cent and then to five
per cent. This rate, although some
what higher than normal, is not an
unusual one at this time of year,
nor one that is in any way bar to
commercial transactions. 1t means
that the merchants and bankers of
London, of worthy standing, can dis
count their paper and their commod-