Daily capital journal. (Salem, Oregon) 1903-1919, 1914-12-09

liquidation was not an important fac
tor, although some selling was OCCASION
ally noted. In fact so positively en-.
was the experiment Of partial
opening that the exchange for the first
time since the war, issued official quo.
latiOns ul stocks selling at or above
the minimum prices. This very prac-
ucal display of confidence, which
should be encouraged, will doubtless
have widely beneficial result. 1t
will tend to establish opinion as to
values. 1t has already demonstrated
there is no such wholesale liquidation in
prospect as at one time feared; and it
paves the way for an early resumption
4, trading in stocks ON the exchange.
The action OF the bond market may be
taken as fair indication of how the
and there is no longer any serious oc.
casiOn for delay in gradually removing
the present restrictions. There are in.
tmations that the Loldon Stock Ex.
change may be opened by the middle
Of the month, provided permission OF
the British government can be obtained,
1t IS now over four months since the
New York Stock Exchange closed, and
no business organization in the United
States has made greater sacrifices or
greater efforts for the preservation of
Jur national finances than the members
o. that body, either individually or col.
lCctWcly. OF course, they have been
largely guided by intelligent self in.
Jerest rs well as by an appreciation Of
the consequences which might have fol,
loved the debacle arising from the war
had It not closed. Nevertheless, every
one in the financial district well knows
that the Stock Exchange was quite as
much influenced in its action by con-
liberation of national interest as by its
own immediate affairs. When the en-.
argency came, tarsightoduess sound
judgment and public spirit promptly
pushed self.ntercst to the rear; and the
New York Stock Exchange through
prompt and msclt'sh actm prevented
the grayest financial crisis this country
has ever seen from running into meal.
cuubIe disaster Now that this danger
has completely disappeared and become
only a matter of history, this fact is
no secret; aud is mentioned not as a
boast but merely as u matter Of Justice
to an institution that has had to bear
much moe than its share Of abuse, aud
whose shortcomings aud mistakes are
nfmitcsinal compared with the ser.
vices which il has rendered to the bust.
ness community Many of those who
loudly rallied against our various ex.
changes are now only too glad to see
them rcsummg normal activities,
The lual money situation shows fur.
lhcr improvements Funds are accum.
.ating and rates declining. These ten.
dcncics must be attributed first, to the
pcnClicicut operations Of the new re-.
serve banks, which have greatly eX.
banded credit lUcilitics, and second to
the dulmess of trade, which lessons the
ordinary demands for accommodation.
rhe lowering Of reserve requirements
under the new system necessarily IN.
yolved the risks Of TOO sudden ease and
too much initiation, IN view Of the large
amounts Of emergency currency and
clearing house certificates still out
standing. Fortunately both OF these
forms of currency are being retired as
last as possible; and as the reserve
banks get into more perfect working
order their control over the money sit
uation will increase and the danger OF
mwholcsome initiation will vanish The
inevitable increase Of money aud credit
will however prove a powerful aid to
business revival, aud II long continued
cannot but have u great stimulus, not
only upon trade but also upon invest
mcnt values,
Trade at home is dull Reduced bank
clcNrngs declining railroad earnings
contraction In building, accompanied by
an unusual number OF business failures
Iull furnish mwclcomc testimony in this
direction But let it be thoroughly un
derstood, this statements represent
conditions that are passed, The tide
has turned. The country must look for
ward tu the constructive effects of O
somi banking systcm, to q period OF
|,usy money aud 20 the sustaining ct
iycts OF a good harvest, The stulb
| Imartpt will hc the first to reflect thcs,
better conditions, aud were 1t not fol
1.-The war American securities would b,
Hcllins many poiuts higher than the,
are today II 1t proves true that thu
mroct has fairly discounted the war
land we think It has then American
securities are entitled to q substantial
recovery provided the fortunes OF mis-
/ iutuurs of war do not prevent Their,
is one other factor ou which much hop,
is being based, and that is that Thu
Interstate Commerce Commission vii
yield to intelligent public opinion an,
also 10 the desires OF the administration
by granting some portion ,U the rail
road 5 request for an advance in rates
Should d favorable dccision be forth
coming this month, as II anticipated h
some circles, the event will have q dis
! tncuy beneficial effect upon busues
sentiment generally The restoration
of business confidence would hc greutl.
accelerated 10y such tangible cyideuc
G the cessation Of official hostility 4
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