Daily capital journal. (Salem, Oregon) 1903-1919, 1914-12-24

experience during the early half of
the week. There are many needy sell
ers N botn of these markets. The
London Exchange has not yet opened
and will not until the new year, so
that this market still offers the only
refuge for those in distress.
The present war is causing fear
full waste of capital and the enormous
new borrowings for financing the war
will inevitably exert n heavy pressure
upon the world s security markets. The
world s savings will doubtless bo ma
terially eurtailed, and the urgency Of
war loans win make it difficult to Sc
cure capital for new industrial or bust
ness enterprises. This means that cap
ital, or savings, for some time to come
will command high rates. On the other
hand, we have an important counter.
actant in the form of cheap money.
Funds are accumulating at home and
abroad, very largely as result of the
diminished volume of business. In
consequence, short term money can be
more freely obtained, This will facili-
tate the carrying Of good stocks which
are already selling at low prices and
yielding much more profitable rates
than short term obligations, Our own
bank reserves have been greatly
strengthened by the operation Of the
new banking system, not to speak Of
the return of funds from the interior
and the lesscned demands for CONNER,
cial purposes.
Mach encouragement can be found
in the course OF our foreign trade. In
November the merchandise exports
amounted to S9O5,7O00O0, against
$l94,100,000 in October In November
our exports totalcd 26,4O0,OOO, com.
lpar1d with $l3S,00O,OO0 in October.
THE excess Of exports over imports
in November amounted to nearly $50.
,000,bl0, compared with $56,000O0O in
October. This striking expansion in
exports was mainly the result Of heavy
shipments Of foodstuffs. Now that the
cotton embargo has been removed tnat
staple will 80 forward much more free
! ly 20 all parts of Europe, Our export
trade is also receiving a stimuu.
through the supplying OF merchandise
formerly supplied by some Of the coun
tries now at war. It was recognized
that the European struggle would ere
ate such an opportunity for American
enterprise, and to some extent thcs,
Expectations are already being real
i2od One Of the chief obstacles +,
further expansion of foreign trade il
the temporary scarcity Of ocean ton
mage. An enormous amount Of German
tonnage has been entirely withdraw
from the freight market, and q vcr,
considerable British tonnage is engag
ed in transport work for the Britisl
government, thus causing a very i'm
porant though temporary curtailmcn
in the supply e. shipping facilities,
The situation at home shows sign
Of improvement. There is decided
, better sentiment in both financial an
commercial circles which must proceed
, any material Improvement Confdcnc
has improved pcrccptibly and @ partii
resumption of industrial acliyity is o.
casionaly noted for the first time. ]
= tae steel industry the turn is apparen
z " close at hand, il it has not arcad
taken place. Prices are exceeding
lCw, 20 low that profits have almo
Z vanished, and either higher prices mn
0 follow or reduction IN the cost
production. There has been bctt
inquiry for pig iron, which is WELDON
proof Of better things to come in III
basic industry. Low prices and choi
D money COght certainly TO stimulate no
N construction work. A somewhat sil
liar condition Of affairs exists in 4
great textile industries. Prices ha
j. declined TO point that seems like
10 to materially encourage the demand {
n. staple fabrics. For some time past q
r. dry goods trade has been exceeding
{. quiet, mainly owing to lcsscned publ
~ consumption. Adjustment TO new tari
rs conditions and the extreme fmctu
X. tiOns in cotton have also tended 10 nj
If terially confuse this great industl
m Cheap cotton, though unwclcOmc
.y the south, has ccme as boon to /
In manufacturer and materially aided (
y. solution of his many perplexitics, cal
~. cd by being caught between aigh coi
w Of production and low selling prc
ly From Washington, which for
es past two years has been such dcprc
re Ing factor in the stool, market, the O
n vices are more encouraging. A yc
Il decided change has taken place In I
III attitadc toward big business and III,
of is no lmgcr any desire 70 unduly hart
n legitimate enterprise, but rather to Q
the restoration Of business 10 morn
an activity This was evidenced in (
n. favorable decision Of tno iulcrstt
IA commerce commission.
n The market IL one that will reon
N. close watching aud much discretion
Il. the selection of Investments. As
n. ready stated, money premises to
mi cheap for some time to come, hut ga
*. tai viii command high rates because
Pc the war Decisive engagements
.o. land or at sea will cause decided II
n tuations in this market. Many Of
M. own industries will profit by the "
IN. aud such securities are likely 10
m fleet this advantage All purchn
i'm should be made with close discrmi
ms ton, the market still being cxpWed
m. the vicissitudos Of war! toan VIII
al nothing rs more uncertain. Spcurt
MI with the largo international mar
M, should be handled with strict conser
No tism; since too iapid advances v
irn surely encourage liquidation. TIo
on industry seems ON the verge Of
al proycment, Tho winter wheat nerei
he rs reported u per cent larger than !
4.