Daily capital journal. (Salem, Oregon) 1903-1919, 1912-08-10

now at It's height. Wall Street is not
governed alone by crops and business,
as Is the case In the interior None
tary conditions are an important In
fluence. So, too, are international
affairs. The money market reflects
increasing business activity. Com
mercial paper is more plentiful. Time
money is hardening and the increased
demand for funds is being felt in all
directions. According to the last
statement Of the national banks thru
out the country loans are more than
S300,00O00O in excess OF a year ago.
Canada has begun to withdraw her
balances from this center Western
and Southern demands will shortly
become more pressing, and there has
been some expectation that Europe,
owing TO strained conditions there,
would depend upon New York for gold
in settlement Of It's obligations to South
America. Easier conditions, however,
are beginning to prevail in Europe.
Germany has been paying portion
of her American loans, indicating par
tial relief of strain in that quarter,
and In both Paris and London cheaper
and more abundant money is reported.
Among the reasons why New York has
been less sangulne than the West Is
the tremendous output of new securi-
ties during the first six months of
the year. While the distribution Of
these has been much more successful
than might have been expected never
theless the local market is somewhat
congested by such excessive offerings
Of hlgh-grade securities In time they
will doubtless be distributed but Au-
gust Is not generally considered a
good investment month In July the
output of new securities was only
about 34,OO0,OOO, as against s13O,O0O,-
900 q year ago This is an unusually
small output, and proves the inability
OF the market to take any further new
issues at this time.
Wall Street is also somewhat con-
cerned about the future Of the rail-
roads, arising from the persistent de-
mands Of labor. Should the engineers
obtain concessions in the recent arbi-
tratlon case, it is expected correspond
ing demands will follow from other
classes of railroad labor The rail-
roads have already raised wages very
literally during the past two years
and in consequence have suffered Sc
verely In net earnings. Further adj
vances could be endured possibly by
a few Of the more prosperous COM
panies. For the weak railroads, how
ever, or those not enjoying an abun-
dance of traffic, any further advance
In wages would be a serious matter;
the theory of uniform wages in spite
OF varying conditions on different sys-
TENS often working injuriously and
unjustly to those less favorably sit
uated.
In the steel trade business contin-
ues active The last quarterly report
OF the United States Steel corporation
was fairly encouraging. Steel prices
are constantly advancing in all direc-
tions, and the results of the next
quarter should show a much more lib
eral profit. Other lines of industry
have given evidence Of prosperity;
notably the great electrical concerns.
The textile industries have been much
embarrassed by labor troubles, and
dividends have been temporarily inn
paired The outlook, however, is for
less disturbance In these quarters, es-
pecially as fabrics are finding a good
market at better prices.
So far as politics are concerned, it