Tells Lumbermen Bank's Attitude Regarding Loans

The following paragraphs are excerpts from an address by Mr. W. L. Thompson, Vice President, First National Bank of Portland, before the West Coast Lumbermen's Association.

Mr. Chaiiman and Fellow Lumbermen-

My salutation may cause some present to wonder; so for their bencdt I will state that we bankers are fast realizing that we arc partncrs in your industry.

As a result of attendancc at both thc preliminary mceting of lumbermen here and the annual meeting of the Wcst Coast Lumbcrmens Associration at Seattle, our bank made survey of its credits to tho lumbcr industry. ft is thc policy of the FLst National Bank to distribute its loans cquitably among the various industries opcrating in the community we servc. Up to the present year we havc ap- portioned l2l per cent of our total loans to ttre use of the lumbir industry. Thc survey referrcd to now discloses that our advances to thc lumber industry amount to 22 per cent of our todal loans.

This situation nahrrally caused considerablc discussion in our Finarrce Cimmittee meetings. Our committee finally decided, while this perccntage was out of linc with our previous policy, that in view of thc fact that thc industry is procecding to financc a program of promotion and trade cxtcnsion, for thc prcsent we would not disturb this perccntage. However, we are examining thc balancc aheets of our lumber borrowers with greatcr care. Wc particularly are noting the liquid position maintaincd and thosc figures which dcnote the price received in the amortization of thc timber cut. It is only a question of timc beforc the opcrator who amortizes hir timber at less than its valuc will find his bank scvcrely criticising his operation, if, indced, thc bank does not go further and curtail his crcdit. Thc bank has a responsibility alike to that of thc op- crator. It is not only uneconomic but wcll nigh criminal to permit the convcrsion of a resource of such grcat importance to thc welfarc of this Northwest as our forests without replacing it in like valucl.

In taking statements from borrowers, banks ask for information asidc frorn the figures shown on the balance shcets. Just as it ir good business for banks to inquirc as to the amount of firc and life insurance carried by borrowers, I believe it mould bc wise also for the banks to ask one othcr qircstion on thc statemcnts of thcir lumber borrowers. The queetion I would recommend is-"Are you a contributor to the Promotion and Trade Extension Program of thc West Coast Lumbcrmen?"

Sklnner t, Eddy Gor1r.

7TT VAN NUYS BLDG.

LOS ^ANGELES TR. 7501

Our committee has fatth in the results you will sccurc from youi program but we wish to warn you thcsc results will not really materialize until your program has been under way for sometinie; do not be easily discouraged and drop your program beforc it has bccn given ample time to sink into thc public mind.

Pending the ripening of thc fruits of your program, wc arc strong in the belief it would be wise for the industry to curtail production Such curtailment automatically will result in bettcr p;iccs. Thc ' economic law of supply and dcmand is working in your industry at this time. You are over producing in thc face of a decreasing de- mand. It may seem hard to disrupt your plans with a curtailment program but it will be far better in the long run for cach and cvcryone of you.

The progress your committee has made in securing subgcribers to the necessary expense fund is to be commendcd. It is difficult to understand how any operator can hold back from joining in the movcmcnt, when such men as make up your committec, lcaders as they are in the industry, grve up their time to put over this program at much pcrsonal discomfort and inconvenicnce, unless it bc that slackers are always ready to ride free at somcone else's expcnse.

MR. AND MRS. GEORGE OFFICER VISIT SAN FRANCISCO

Harry Officer, Santa Fe Lumber Co., San Francisco, has been entertaining his father and mother, Mr. and Mrs. George_Officer of Conway, South Carolina, during the past we€k. On their way west, they stopped at McNary, Arizona, to visit a few days with their son, W. H. Officer, who is connected with the Cady Lumber Co. Ilarry's father is a retired lumberman and for many years was connected with the sawmill business in the South. Thev will return to their home by way of New Orleans, whdre they visit for a few days.

REYNIER LUMBER CO.

126-1?i.lllD Sante Marina Building ll2 Market Strcct

SAN FRANCISCO

WHOLESALE

Fir and Redwood Lumbcr

Trcatcd and Untrcated Poler and Piler

Californir Sugar end Whitc Pinc Lumber

Split Redwood Ticr, Pottr, Grape Stekcr, ctc. Sawn Redwood ShaLer and Shinglcr

PORTLAI{D, OREGON, OFFICE Northwertem BinL BldS'

Our repreacntative! In Southern Cdlfornh an Wllllanr end Cooper. AS Wett Sixtb Strcct, Iar ArgGlcr