Daily capital journal. (Salem, Oregon) 1903-1919, 1919-03-29

.
isafekeeping their funds.
Conditions were anomalous and un.
/ favorable TO the growth Of banks. In
the matter Of quality Of our eireula-
tion we were not in harmony with the
irest of the country east Of the Rocky
mountains which used deprecated pa
per currency while ours was gold and
silver, soon protected by specific con
tract laws making valid contracts for
payment in gold. However, the sense
Of honor was so high among all classes Of
our people, that while all debtors great
and small east Of the Rockies rcpudi-
ated their debts and paid in this depre-
eiotcd currency, our people paid gold,
although they could have proutId from
twenty to tnirty per cent by pursuing
Fhe same course as the debtors Of the
east. Cases were extremely rare IN Ore
gon of reputation of this kind and us
ually were advertised somewhat rs fol
lows:
''This is to certify that John Doe
greenbackcd me on a note Of 800.
(Signod) ORCHARD HOE"
which ostracized "John Doe" for all
time in his community.
No Checks Circulated.
Our merchants received the com from
their customers, there were no checks
in circulation Of course, and they in
turn sent the coin to paw for their goods
to Portland and San Francisco. Our
manufactures, over twenty in number
including woClcn mills and FIGURING
mills bought wool, grain and other raw
products and paid for them in coin over
their own counters. Merchants received
the coin and paid for their goods by
shipping the same by Well Fargo ex-
press.
During Oregon S slow progress of ad-
mission, the great panic of 1857 de-
stroyed confidence in banks everywhere
and it was foreefully expressed in Ar
tiele XI, See. l, Of our constitution,
vide
"The legislative assembly shall not
have the power to establish or ineOrpOr-
ate any bank, Or banking company, or
moneyed institution whatever; =. .. =. -"
The price of gold in New York on
the onening day of the bank was 1917,
equivalent to seventy.six cents for
greenbacks. As il took two months by
mail to New York and return, the inn
migrants S greenbaeks netted him about
seventy cents, which he blamed ON the
banks-therefore he was not likely to
become a depositor.
Had Confidence.
The investment Of $4,000 in build
ing by LGdd & Bush with no current
business upon which to base It, was GER
tainly substantial exhibition of con.
fidenee in Salem's future, and the Sc
qucl demonstrates the wisdom Of the
investment, in the growth and present
volume Of their business.
1t is hard now to realize the primitive
methods employed in the transaction Of
business then.
Business correspondence then was by
Well Fargo compGnv letter express and
was carried by steamer TO ana from
San Francisco to Portland. We bought
our W. F. company envelopes at five
cents per, which were L. 5. stamped
paid envelopes with the additional W.
F. company stamp.
The Z. S. mail was carried overland
by stage and it was rumored thar when
the stage was full Of passengers the
mail was cached in the first convenient
place until there was room for it in the
stage coach.
splat Winter in Bank.
About 1859 / was employed by G. W.
Gray in his Produce Forwarding. Com.
mission and express agency at Lansing,
Iowa. The next year Mr.. Gray devoted
his time TO the banking business Of G.
W. Gray & Company and l was admit
ted as a partner Of the other business
and made manager. Navigarson closed
on the Mississippi river in November Of
each year and l was employed during
the winter in the bank.
About 1860 or 81 Mr.. Gray sold his
bank interests (Bank Of Lansing, Iowa.
and afterwards oraanized a private
bank with the firm name of Gray
Company, of which l was the "com-
pany" and cashier.
In June, 1865, we sold and arrived in
Salem in July. 1865, where MIR. Gray,
John Berry and myself formed a part.
nership to engage in merchandising un.
der the firm name Of G. W. GRAY &
Company.
sold my interest in 1868 but remain.
ed in the store until I was employed by
Ladd a Bush early in 1869.