Daily capital journal. (Salem, Oregon) 1903-1919, 1913-06-19
SECRETARY M'ADOO
PRAISED BY CLENS
New York Banker Indorses
Stand Taken by Secretary
of Treasury.
HOME SITUATION SOUND
Every Reason TO Believe When Tariff
Question Is Settled There VIII Be
Big Revival

New York, June 19-Henry Clews
says: It has been an eventful week up.
on the stock exchange. First came the
Minnesota rate decision from the su-
preme court, which was momentarily a
disappointment to railroad interests, al
though not without its favorable fea.
tures. This decision has happily set
tied the question of state rights as to
the power of rate making. At present
a state has the power to make and reg
ulate rates within its borders provided
no rates are now in existence within
such territory made by the interstate
commerce commission, whose jurisdic.
tion is supreme. The power Of the com
mission has perhaps been exercised only
two or three times in its history. Con
gress, the supreme law.making body Of
the nation, through its servant the in.
terstate commerce commission, is thus
recognized as the final authority in the
making and regulation of railroad rates
in all the states. The railroads and all
large corporate interests win welcome
national instead Of individual state reg.
ulation Of their properties and the ex.
ercise Of the central authority Of con.
gTess viii eonduee in the long run to the
stability and prosperity Of business, so
there is, after all, a bright lining to the
clouds that now obscure the vision Of
the American people.
The next important event was the an
nouncement Of Secretary of the Treas
ury McAdoo that he was willing to au-
thOrize additional bank note circcula.
tion to the amount Of $50000O,OOO un.
der the Aldrich- -Vreeland act when the
emergencies demanded. There was
nothing new in this announcement, for
the bankers and others in the financial
district were quite well aware thst the
secretary had this power But the an
nouncement Of the readiness Of the new
administration to adopt this method
when desirable exerted a most reasu-
surfing effect, and the better feeling
thus induced caused a sharp rally in
The entire market, and Justly so. The
short interests had been considerably
expanded by previous developments,
and the rush to cover shorts materially
aided the upward movement. Mr. Nc.
Adoo's action deserves high commen.
dation as a master stroke. II is known
that the notes for the emergency are
already printed and could be promptly
issued II required. The mere fact, how.
ever, that they are practically and in.
stantly available will do much to re.
store confidence and check foolish pan.
ic talk. Nothing will do more to render
the issue Of this currency unnecessary
than the fact that it is Immediately
available.
The home business situation is gen.
orally sound. Merchants and manufac.
turers are running upon a hand.to.
mouth basis and there is consequently
no general oversupply Of merchandise.
The moderate contraction Of credit thus
far enforced has also tended to improve
general conditions and place the coun.
try upon a stronger and more conserv.
ative basis. Commercial paper is in
better supply and offerings are more
freely taken indicating sound business
conditions. There is every reason to
believe that as soon as the tariff is set.
tied decided business recovery will
follow. In the steel trade there is al.
ready disposition to place orders with
more freedom. Orders for cotton goods
ard woolens are increasing. Our for.
cim trade continues 10 improve. tho In.