Daily capital journal. (Salem, Oregon) 1903-1919, 1914-12-30

change in the attitude of the federal
government and the legislature toward
business interests. The disposition now
is to aid, NO hinder, business which
nad suffered seriously from unreasoning
hostility. At last the country realizes
that the Sherman law under the new in
depreciation is sufficient to protect the
people against abuses of monopoly; and
If any doubt on that score exists the
new Clayton law makes assurance donb-
ly sure. The beneficial effects Of this
change have not yet had an opportun-
ity Of expressing themselves. Business
has adjusted itself to the new tariff;
and, though some of the changes work
harshly and may come up for reetifi-
cation, the tariff as disturbing ele-
ment has been relegated to the rear.
This favorable development has also
escaped attention. Another step for
ward of supreme Importance is the re-
|cons;ruction of our banking system up.
on scientific lines, and in stricter ac.
eordanee with long recognized necessi-
ties. The new federal reserve system
made splendid start on the road to
sound and progressive banking. The
country now has an elastic currency
system; also plan whereby the bank.
ing powers of the country are concen.
trated, with the power Of control dis
trbuted somewhat in accordance with
the Importance Of various sections. The
new system is not yet in full working
order but has already shown its poten.
tialities for good, and the conntry now
possesses financial organization better
able to cope with financial crisis than
any which we have hitherto had. This is
another favorable factor which has not
been adequately reflected in either
business or financial circles. Still an.
other encouraging factor has been a
good harvest, which saved the country
from serious setback and impaired
positive optimism throughout the grain
belt. We raised far too much cotton
to benefit the south; but this will prove
not unmixed blessing, since CHEAP
cotton must help both domestic and
European manufacturers to place their
industry upon a more normal condition
Lastly the interstate commerce commits.
sion granted the railroads permission to
advance rates per cent with certain
well known exceptions The decision
was somewhat disappointing inasmuca
as it is expected to increase revenues
only 80 millions instead af so millions
as at first stated; but its chief i'm.
portance is the significant change Of
attitude on the part Of the commission.
ers toward the railroads, which is IN
keeping with the change in the govern
ment attitude already noted.
The above is rather formidable ar.
Tray Of favorable circumstances, thus
far practically ignored in the financial
markets which are usually the first tC
respnd to suca events. Only cne ex
planation can be given for this failure
TO respond, and that is the war which
overshadows and outweighs every Other
consideration. Until peace prospect.
are more definite stock market opera
tions will have to be kept within con
isevItive limits. A few stocks viii
benefit by the war, but all would bene
fit by peace; and all purchases whether
on investment or speculation account
should he made with both discrimina
tion and conservatism Additional fa
vordble conditions with direct in
ilnencc upon values are the continued
ease Of money and the January invest
ment demand wnich is close at hand
Our exports continue large and ex
change is not far from the gold i'm
porting point, More or less foreign
liquidation has taken place, but the Of
ferings from thence have thus far been
readily absorbed. The steel industry
shows symptoms Of improvement, ant
the decision ne. to reduce wages is re-
gardod as an expression of greater con
fidence in the future. Railroad earn
ings are reflecting the prevalent dull
ness in business. Gross earnings offer
show heavy losses which are heipg part
ly offset by retrenchment in operating
expenses. Dividend reductions cxerte,
relatively small effect upon market val
ues, having evidently been discounted
in advance. HENRY CLEWS.
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