a bundle of their promissory notes to the clearing house committee and get an
allotment of clearing house certificates, which bore on their face the statement
that the said bank had deposited with the said clearing house committee securi-
ties to redeem the said certificates, and that the said committee would guarantee
that the holders of such cerificates would be paid out of the said securities.
These certificates were then paid out to the customers of the bank in the course
of business, or loaned to them if desired. Many thousand dollars of this sort of
paper was issued and passed into all the channels of trade all over the state, al-
though none of the banks outside of Portland went into the scheme, or appHed
for any of the certificate money. The certificates were based on the paper due
the banks ; the paper due the banks was based on fish, wheat, lumber, wool, hops,
fruit, manufactured goods, etc. And the grangers who proposed fifteen years
before to have the U. S. government lend the farmers paper money on wheat,
cotton, wool, etc., were now able to take front seats in finance, and sit at the
head of the table with the most exclusive of Portland millionaires. The certifi-
cates were all faithfully redeemed within six months.
Oregon banks and Oregon business is now on a stable and prosperous foun- dation. Probably no other state in the union can make as good a financial show- ing for the size of its population as Oregon.
Another great stride in the commercial growth of the state of Oregon is marked by the report of the state bank examiner, showing the condition of Ore- gon banks on September i, 1910, and their condition a year ago. The increase for the year in total resources of the banks of Oregon has been more than $20,- 000,000, and the total deposits are now greater than $100,000,000. The number of banks has increased during the same period from 204 to 232. There has been an increase of 23 state banks and five national banks. There are now in Oregon 17 national banks and 155 state banks. Loans and discounts of Oregon banks a year ago were $56,175,507.28, while on September i, 1910, they equalled $71,944,- 594.63, an increase for the year of $15,768,887.35, and an increase since Sep- tember 23, 1908, of $22,136,513.67. The deposits have increased correspond- ingly. On September i, 1910, total deposits in all Oregon banks equalled $100,- 852,445.40. The increase since September, 1909, is $14,760,583.87. Total re- sources of all Oregon banks now equals $142,670,514.57, an increase in a year of $20,698,666.90. The capital stock of Oregon banks has increased during the year $3,074,375.40. It now equals $15,121,125.40. Surplus funds in Oregon banks on September ist, were $4,798,663.88, an increase since September i, 1909, of $230,435.03.
Two-thirds of the sum total of Oregon bank capital and bank transactions is to be credited to the city of Portland. Portland's bank clearances have more than doubled in five years. Since 1904 each year has shown a gain over the pre- ceding year, with the exception of 1908. Until this year, 1907 held the record- breaking total, but was followed by a period of financial unrest which showed its effect until late in 1908. In 1908 the clearances fell $40,000,000 below those of 1907, but in 1909 every month showed an increase until at the close of the year^ the total aggregates more than $391,000,000, as against $189,051,469.92 in 1904. The following table gives the bank clearances for the last six years :
1904 $189,051,469.92
1905 228,402,712.69
1906 281,170,796.26
1907 350,888,630.97
1908 310,656,512.69
1909 39i>479724-89.
Reports for the year 1910 are not available when this chapter was prepared ; but estimating from known increases of business Portland's bank clearings for the year 1910, will not fall short of five hundred million dollars. Upon this
