Daily capital journal. (Salem, Oregon) 1903-1919, 1914-12-16
HENRY CLEWS WEEKLY
FINANCIAL LETTER

New York Dee. l2.-The Stock Ex-
change has made another important
step toward complete resumption. Deal.
ings are openly restored on stocks, with
these restrictions: No sales below min
imum prices Of July 30th, dividend ad,
justment included; and open trading
only in the list of stocks specifically
named Dealings will be permitted in
nearly 200 out of the 5G5 shares listed
IN the Ncw York Stock Exchange.
This action marks the almost com
/ plcte mobilization Of American fl
nances on war basis Our financial
markets nayo at last successfully
emerged from perhaps the most criti.
cal period in history; and, thanks to
the sound and firm policy Of the Stock
Exchange the country has escaped any
serious financial disaster. There is no
longer any danger of panic, and the
future of prices must now be governed
hy influences open to judgment Of the
public. Let us consider what those in
tluences are. The war naturally re-
mains the paramount consideration, but
its effects have been amply if not fully
/ discounted. Indirectly its course must
have Il decided Influence upon values;
yet, until peace prospects become much
more definite, discrimination will have
to be exercised in the attitude toward
securities. There is vast mass Of
American investments which are prac.
/ tically beyond war influences. These
have wcathered the storm safely, and
must he among the first to recover
from late depression. Our neutrality
ud our distance from the conflict are
incs;imublr advantages that should not
/ he forgotten
/ taking the war at its fair value,
homc influences must be regarded az
/ the most important measure of intrin.
/ sic values. The whole country, and cs.
pccially the West, is now feeling the
/ advantage Of good harvest This is
/ particularly true Of the great wheat
/ belt, whore the farmers are reaping
| profitable prices for an enormous yield,
/ Undoubtedly the war has brought pros.
perity to the West, not only in good
prices for food products, but also
through liberal contracts for army sup.
/ plies in which the East has very con.
siderable share, The South has been
/ hurt by the war more than any other
section owing TO the low price of cot.
ton and the temporary stoppuge Of cx.
ports, These conditions, however, are
being gradually rectfied; the South is
less dependent upon single crop than
ever before, and the problem Of finanC.
ing the huge 10000 0OO.bule crop is be.
ing surely solved, and there is every in.
dication that before long consumption
will begin to recover the losses Of the
last four months, There will be big
surplus left over for next season, which
will nccessitate u reduction of acreage
in the coming crop; nevertheless from
the agricultural point Of view the coun.
try as whole is sound and prosper.
GUS.
As 10 the industrial situation, that IN
still somewhat confused Much Of the
current depression is due to lack of in.
itiotiye ON part of our captains Of in.
dustry. Their confidence has been 81.
ycrely shaken by the flood Of antug.
Onistic legislation which swept the
country far and wide for several years
Capital has most nssurcdly been driven
into hiding; enterprise IL checked, and
the number Of unemployed cunscqucnt'
~ vastly increased Fortunately there
are signs Of u turn In the tide in this
respect President Wilson hns wisely
called halt; having realized the harm
Vt such oppression, Hcnccforth the
policy Of the Government Is to be help
ful to business, and not detrimental
With one accord the entire country will
look forward eagerly to the fulfillmcni
of this promise,
A very Important fuctor In this prob
lem Of "the government In business
is the forthcoming decision of the In
tcwtutc Commerce Commission. IL u
an old story--thc impairment Of rail
road credit; the stoppugc OF improve
mcnts, aud the crnmpiug OF public IA
. cilitics--und argument Is now useless
II is the decision that is wanted III,
/, prcidcut has made II known TINT h,
, tUNors more cousidcrutc policy to th,
transportation lines; and there is rcu
son TO hope TINT, with public opinion
and fair pny so heavily ON his side
somc concessions will he allowed tn,
railroads
A very important aid TO business re
covcry is the outlook for cheap money
aud resulting Improvement In th,
credit situation null business is part
|ly accountable for the surplus of idl,
funds though the mass of cmergcnc,
currency still In circulation is largel,
responsible for the present ease Abou
,oucholf Of the original issue, which al
one time exceeded S3sl,O00,00O, ha
been withdrawn without injury owin,
to the operations OF the new Fedora
; reserve system which released larg,
portion Of the reserves and permitte.