Daily capital journal. (Salem, Oregon) 1903-1919, 1914-01-02

ers now know the conditions upon which
their calculations must be based, and
they can go ahead without disconcertins
uncertainty. Of course, foreign com
petition is a somewhat unknown factor
and it has not yet been demonstrated
how far our steel and wooden and
cotton mills can hold their own. Ur
to date there have been no serious con.
sequences. Our steel manufacturers
have lowered their prices to a level
that closes the door to foreign products,
although limited amounts may find
their way to the coastal markets in
cases of rising prices at home or falling
prices abroad. Fine cottons and wool
ems may come in more freely, but our
manufacturers, aided by free raw ma.
terials, are already giving a good ac.
count of themselves; and foreign man.
ufacturers show wise hesitation about
invading the American markets. Time
is necessary for ascertaining the full
effects Of the new tariff, but thus far
at least there is no cause for alarm.
Profits have been cut down, and a few
obsolete plants closed, but this might
have happened anyway.
There has been no financial legis-
lation of such vital Importance as the
present banking and currency bill since
the success of the sound money cam
paign by the election of President Nc
Kinley, in 1896. The new bill is a big
step forward in placing the United
States in the front ranks of internation-
al financial leadership. At last we are
to have an elastic banking and cur.
rency system, fitted to the growing re-
quirements of the country, and giving
the advantage of Capitalization under
public control with view to prevent
ing its abuse by private interests. The
Importance Of this step cannot be i'm
mediately gauged. Months, if not years
will be required to work out its results
and to amend any minor defects in the
new plan. Suffice it to say that it
will give the country centralized
banking system and an elastic currency
with a sound basis; one capable of ra.
tional expansion or contraction accord
ing to requirements, and one that will
prove a bulwark of safety in time Of
emergency or panic. It's value in future
will largely depend upon the type Of
men on the regional reserve board, and
heavy responsibility falls upon the
president in the selection of men of
adequate ability and character
Another very important development
which should tend to the restoration
of business confidence is the attitude
Of President Wilson on the trust ques.
ton. The president considers the Sher-
man law sufficient for all practical
purposes, because the supreme court
has read reason into the statute. Ho is
consequently opposed to changes furth-
er than supplementary legislation for
clearing up ambiguous points, Still an
other event Of the highest significance
was the offer of the Bell Telephone
company to voluntarily dissolve in obe-
dance to the law, demonstrating a more
conciliatOry spirit between the govern
ment and big business Monopoly has
at last bowed to public opinion; and if
this policy is carried out in sincerity,
there is every reason to believe that
the dangerous friction which has exist
ed for years between the government
and our great corporations will gradual
ly disappear President Elliott Of the
New Haven road is another striking ex-
ample Of the new policy, which is "the
puDllC Dt pledSeu III pldVt VI thN
public be damned" " This does not mean
that the millennium is in sight by any
but it does mean that the blind
selfishness Of monopoly, one Of the
prime incentives, to government owner
ship, is being eliminated, and that more
amicable relations between corporations
and the public will now be possible.
The clearing Of the political and com
mercial atmosphere in these respects
will do much toward removing shackles
from business and stimulating revival
of confidence. President Wilson was
sincere when he said his
policy was "to build up business on a
sound basis and to him must be ac-
corded the chief credit in SETTLING the
three disquieting problems of tariff.
currency and trusts-whether settled
ON basis pleasing to everybody or
not
Still another problem of the greatest
Importance which is approaching sol.
ution is the railroad question, the de.
tails Of which are too familiar to re.
quire repetition in this review. Suffice