Daily capital journal. (Salem, Oregon) 1903-1919, 1914-11-25

regulation there is the better. Demand
and supply are the best regulators.
The blow to the South is only temper
ary, the resources OF that section being
in no sense crippled, and before long
arrangements viii undoubtedly be ef
feetcd TO carry the surplus over till
next year. Meanwhile, the South will
be stimulated into still further di
versifieation of its crops whenever lea.
sible. Current railroad returns are any
thing but satisfactory, although by Sc.
we're economies the roads are able tn
a considerable extent to offset the
shrinkage in revenue. Later on the re.
suits, gross and net, should prove more
satisfactory. Clearing House returns
are showing smaller decreases than in
previous weeks. With the resumption
cf various Exchanges the comparisons
arc bound to be more favorable rs time
progresses. Our monetary situation is
decidedly better. The new reserv,
bank was launched without any diff
Guilty, and a sense OF relief already ex.
lists owing to the increased credit facil.
tiles which will result under the new
system. The surplus reserve under the
new system win probably touch 500.
100000 this week. Both clearing house
certificates and emergency currency
are being rapidly retired. Commercial
paper is in good request, but the de-.
mand is not large owing to the zen.
eraf slackness of trade.
Our foreign trade returns for Octo.
ber were remarkably encouraging. The
total exports for the menth were sig5..
900 600, or $39000,000 in excess of Sep
tcmbcr' but $76,OO0000 less than o
year ago, Our imports for the month
were $l3s,0000 900, or $2,000.0OO less
than in September, but S5,000.0OO in
excess of a year ago. Hence the ca.
cess of exports over imports in Octoher
was $57.000,000, compared with $lG.,
100000 in September; but IN 1913 the
excess was nearly Sl3o,000 900. Con.
sidering the shock of war and the sus,
pension Of trade with Germany. aus
tria and Russia which demorolized for.
cign commerce in August, this recov.
cry is highly significant and encourag.
ing
Tho outlook for giltcdgcd and the
better grade securities is very favor.
able. There is sure to be large de.
mand for this class of investments. es
pceially bonds. short term notes guar
anteed stocks, etc. Investors will be
obliged TO discriminate owing to the
many uncertain conditions. and will
naturally take the hest, especially Wher
these are offered at attractive prices
For months to come there will be hngC
ilotations Of government securitic,
abroad which win absorb foreigr
funds. At home new issues hive beer
comparatively light for several month";
past. There nre no safer investment,
today than Americans, and while pur
chases must be made with careful iudg
mcnt, there pre many issues available
Mt prices which will return good inter
est at once and good profits later.
As for the war, that seems destne,
TO continue its appalling sweep TO
months TO come. No signs of exhaus
tion are yet visible on either side
Misery mud suffering are sure to in
crease with the progress of winter, an,
so far there sens to be no force il
sight able to cope with the mad carni
val Of blood which is now drencbin
the battlcfields Of Europe. America
sympathy goes out freely to the sui
fering in the form Of practical ait
which must be continued with incren'
ing and patient generosity. America
optimism is desirable, even ncecssar
and wcll.foundcd, but 1t must be stlict