Daily capital journal. (Salem, Oregon) 1903-1919, 1914-06-10

alton point. Our railroads must inevi-
tably soon come into the market for
rails, equipment and general replenish-
ment, if only to keep their plant up to
necessary standards and within the
lines of sound and safe management.
Contraction in the steel trade upon the
present scale for any great length of
time is impossible. In other lines of
industry supplies of merchandise are
relatively light, but utyretrenchment has
not been so keen in every direction. Il
is in the steel and certain departments
of real estate business that depression
has been most severe. The most sub.
stantial reason, however for taking
more hopeful view is the prospect of
an enormous wheat crop, the most opti-
mistic estimates still running as high
as 900000,000 bushels, compared with
760,000,000 bushels last year. The win
ter wheat harvesting is already about
to begin. Kansas and number of
other states in the wheat belt are
counting upon period of great pros
perity as a result of the wheat har-
vest, The promise is also good for the
oat crop and fruits of all kinds As
for corn, planting is still incomplete,
and it is yet too early to form any
opinion of this important cereal; but
the conditions of soil are known to be
almost universally favorable.
Another important supporting influ-
ence is the easy condition of the money
market with prospects of continuance.
Liberal gold exports have occurred, but
these have produced no uneasiness for
the reason that we have an abundance
of the precious metal to spare; and our
own trade requirements are restricted.
Very soon there will be a better supply
of grain and cotton bills. 1t is prob.
able that still further shipments may
be made to Europe, since. the Bank of
England is carrying a relatively small
supply of gold, compared with the large
increases in the stocks held by the
great banks of France, Russia and Ger
many. It is well, also, to remember
that the new banking system will prob
ably be in working order by Septem-
Der ], and this will prove a very i'm
portant factor in the money situation.
The obtaining of credit will be greatly
facilitated, and less gold will be held
in the United States treasury; all of
which factors will be stimulating to
business and have more or less Of an
inflationary effect. The Mexican out
look, though improving, still contains
possibilities of disturbance, and is
problem that requires close watching
The situation abroad has improved as
result of recent liquidation The
home railroad situation is also improv-
ing; in some instances gross earnings
are making better showing, and the
economies enforced on many of the
roads are resulting in better net re-
turns.
The market has now had considerable
rise and more or less profit-taking must
be anticipated in event of any unfa.
vorable developments 1t would seem
unlikely however, for the market to
make further recessions for the better
class Of securities excepting tempOrar-
lily, and were it not for the disappoint-
ing situation at Washington, we should
undoubtedly witness much more ac.
tive and stronger market. There is
plenty of money awaiting good invest.
ment, and not few sound securities
are selling at very attractive prices,
considering the returns offered. There
is continued marked preference for
bonds over stocks, which is Of course
the result of prevailing distrust. Ger
tainly enlightened public opinion and
the sober thinking masses are not in
accord with many Of the present ex-
trene policies assumed at Washington.
Business requires time to adjust itself
to new laws, the effects of which are
yet to be seen. We have had an over
dose of inquisition and regulation. Too
much medicine is more likely to stran-
gel than cure.
HENRY CLEws.