Daily capital journal. (Salem, Oregon) 1903-1919, 1914-08-12

ports, are practically blocked. Yet
somehow or other Europe must have
these products, or suffer still more SER
iously. We need the proceeds of their
sale, or many of our merchants will
doubtless be for the time being more
or less ineonvenieneed or crippled. Just
now we sorely feel the need of an Am
eriean merchant marine, which we
might have had on hand but for the
many ill-advised restrictions upon op-
Grafton which still remain. Some relief
may be obtained by placing our coast
ing vessels in the transatlantic trade,
or by raising the American flag upon
many American ships now operating
under foreign flags. The most prob
able solution, however. will come when
Britain shows her sea power by keep
ing the lines of international com,
mcrce comparatively free Of hostile
cruisers. This she will doubtless DO
eventually.
II may be some time before our for
eign trade, aggrcgating about $1,000
100000 a year, viii resume its aeeus-
toned sway. Meantime our farmers
and our railroads must be prepared for
delayed export trade. The products
held back now, however, viii be IL
great demand later on at unquestion-
ably high prices. One sorry result OF
the war viii be the worldly ide 40
vance in food products, which we il
common with ether nations must ex,
Pect, On Imports the situation
equally deronged. Our purchases G.
european tuXulies will ccrt;i inly be
curtGiled, not for lack of tlansporta.
tion, but because the people or tu
rope viii have largely become destroy
ers instead of producers. Europei.
,ugr lad grin crops viii certairl,
suffer severely. British eotrtn til
Soolen manufacturers will incur hccN,
losses. Even if they ultimately secur,
their supplies of raw materials. as the,
prooably viii, thCir export trade VII
Je seriously disturbed. This viii great.
" stimulate American exports OF cot.
Ton goods, and at the saILe tlAe cL,,
our imports of voclcns. The ineyi.
table reduction of imports at large
,arougn Impaired buying power ..
10th SIDES Ot the water, Is sure 20 q.
ninisn Our national revenue, the tota
from duties ;I.ne amounting to abU
gj25,OO0,O 900 per year, OF Hvt far r!vL
halt our total revenue. Alreacy thei
is talk OF an Increase in the incomt
5ax TO offset this expected loss.
In Spite of ell the horrors and L.
,hlvs winch this war viii bling, thel
are offsets and hopes upon which oui
gaze should be steadfastly set. What.
ever nation succeeds, the end of ex.
cessive nilitdris.n is at hand. Thoug
var and arms cannot yet be abolished
Europe viii be saved for years to como
the crushing armameles which she hi.
supported for so long and the posses
sion of which has been largely instrv
mental in exciting this gigantic strug
gle. Some thrones are clready toter
ing, and republics will take their place
all of which will make for peace. Thi.
struggle, moreover, will have q sober
ing influence upon the whole world
In spite of the bitterness of war, many
differences will be settled; some form,
of discomfort will disappear, and men ),
better impulses are already beginhin;
to rise and win be established upon F,
higher plane when passion finally cools
Happily, America is out OF the struggle
We may feel the consequence in tenn
porary business confusion; and it mus
not be overlooked that there are grave
questions ahead which viii call for wis
dom and caution in making commit
ments. But ultimately the United
States will benefit materially, and it i.
TO be hoped, morally by this Vnprcce
dented and unealled-for eataelysm.
Already the financial skies are clear
ing. The Bank of England rate ha,
been reduced to 6 per cent; likewis;
the Bank Of France. In local financia
circles there is also o much more conf
dent and hopeful feeling regarding tn,
future.
HENRY CLEWS.