Daily capital journal. (Salem, Oregon) 1903-1919, 1914-08-12
HENRY CLEWS' REVIEW
OF WORLD CONDITIONS

New York, Aug 8, 9l4.-(Speeial.)
The crisis of the age is on, and the
worst is probably appreciated. The re-
suit must now be left 20 the arbitra-
ment of arms. Great Britain 5 entry
into the war will undoubtedly hasten
the end; the sheer necessity of the con
tliet necessarily limiting its duration.
For the time being the world s com
merce is demoralized. On the conti-
nent of Europe the losses will be CO.
lossal. Hundreds Of thousands of pre-
cious lives will be sacrificed, and bill
lions of capital and property destroyed.
The horrors that will have to be en-
durcd are too dreadful for the imagi-
nation. Chaos will rule in European
industry and commerce for possibly
some time to come. The most that can
be reasonably hoped for is some great
decisive battle in the early stages OF
the war, decisive enough at least to
open the door for mediation and thus
stop this monstrous struggle; the sad
dest blot on Christendom in many gen
erations.
In the course of time the present
confusion will partly disappear. The
world is rapidly settling down to a
war basis, and many of the necessary
activities of life will soon go on much
as usual. So far as the United States
is concerned, we are energetically ad
justing ourselves to the new situation
Our leading financiers are showing
degree of calmness, courage, consider
alton and wisdom that is a splendid ex-
hibition of public spirit. Today Wall
Street is shouldering responsibilities,
accepting risks and granting aecOmmo-
dations that are saving this country
from panic and materially alleviating
the stress abroad Whatever the mis-
deeds of the past, today those who
manage our leading financial institu-
tions are showing fine ability and q
splendid courage in meeting the grave
situation. Not only our financial ma
chinery has been put in shape to meet
almost any contingency, but important
aid has been rendered to European
bankers, relieving them of considerable
of their obligations to this side. For
I Oikh OllOu llnunCC knC uiONlUB
of some of our crops, cotton for in
stance; but in this case by relieving
them we have helped ourselves as well
as Europe. In all departments of bust
ness there is growing spirit of coop
Grafton, which should be generously en-
larged until the crisis is passed. There
is universal extension of credit where
needed and where conditions are sound.
The moratorium has been promptly
adopted wherever necessary. The fl
naneial strain ON this side has been ma
terially relieved by the issue of $780,
100000 of emergency currency under
the AldrichVreeland act, and laws
have been passed making it possible if
necessary to put into circulation over
| $1,700,000,000 of such currency. BY
common understanding our bankers
have agreed to prevent any further i'm
portant exports of gold. The closing
of all the exchanges has fortunately
prevented an aggravation of the crisis
by stopping ill-advised speculation; and
before long there is little doubt but
that the financial situation here will
have been so strengthened as to allow
the re-opening of Exchanges through
out the country.
At the moment the most serious eff
feet of the war upon ourselves, outside
of financial circles, is the utter de-
moralization of foreign commerce and
its handmade, foreign exchange. Our
cotton, our grain and our oil, which
constitute a large portion of our ex-