Daily capital journal. (Salem, Oregon) 1903-1919, 1915-08-18
Fall Season Promises Well
for This Country--- Clews

large credits on this side, which so taF
as known has not as vet been done, or
succeeds in sending large amounts OF
securities or merchandise in settlement.
Very soon the outward movement Of
grain and war munitions will begin
upon a mucn more active scale, and un'
less imports increase or something else
/ is done to relieve the situation, a fresh
crisis in the foreign exchange market
may shortly develop. Indications point
I 10 a further importation Of gold, some
estimates being as high as ST5,OOO,OO
also a renewed selling of American
stocks unless some expedient is adopted
to tide over the crisis.
General business SHOWS some improve.
ment. Western merchants are exceed
ingly hopeful as usual at this season
because of the crops; while eastern
merchants nave been almost equally
encouraged by that fact coupled with
the growing activity in the steel in.
dustry, The purchasing abilities Of the
American farmer and the American
steel worker are being considerably
enhanced, fact which must inevitably
stimulate the cmsumptiye activities of
the country as a whole. Credit isl
sound, lOanabe funds are plentiful, an
important section of the people is say.
ing money, and confidence everywhere
is growing slowly but surely. Railroad
managers were disappointed at the
small rate concessions granted by the
interstate commerce commission, a boly.
when seems slow to appreciate either
the legitimate needs or the change in
public temper which no longer desires
other than favorable and Just treat.
ment Of the railroads. Current rail.
road returns are disappointing, largely
because they reflect the unusually
light grain movement and the shrinkage
during the month. Very soon the new
crops and the activity in steel will
snow themselves in traffic returns and
better earnings, 1t is altogether likely |
that earnings for August September, |
October, if not November also, will
show encouraging gains over last year.
For the time being at least, our rela.
tons with Germany are less tense and
there is good reason to hope that ser.
ious friction will be avoided. The
Mexican difficulties have broken ont
afresh and are still matter of much
public concern. The country, however,
has become somewhat accustomed to
these troubles and takes alarm much
less easily, During the past week
neither of these great problems have
disturbed the stock market which has
either discounted all known possibilities
or else has become hardened to such /
factors.
Activity on the Stock Exchange con,
tinues on a liberal scale. Speculation
in the war group has been toned down
somewhat and more or less disposition
has been shown to either take profits
or avoid extra hazardous ventures in
this division Of the market. Operations
are on a broader and more general
scale, the disposition being to divert
SPECULATION to the railroads and some
OF the well established industrials. The
outlook for railroad investments is Ger.
talLly improving, AS Just said, traffic
respects are Frightening. Public hos. .
uilty to the railroads is disappearing
aud the latter have a better outlook
l'F securing fair treatment from the
government than has been the case for
several years, Liquidation has been
severe and extensive in this portion
OF the investment field. Dividend re.
"uguons have about reached the end,
and altogether the better class of rail
ROADS have a higher standing as invest. .
m'nts than has been the case for many
, ears past The most important un.
certainty to be faced is the possibility
oil hoeTal foreign selling in case of
any material advance on this side I'll