Daily capital journal. (Salem, Oregon) 1903-1919, 1915-11-11

1
the United States. 1t is surprising all
expectations Evidences of this are
multiplying in every direction. The
steel industry is unprecedentedly ac
tive; our exports are ON Phenomenal
scale; serious ship famine exists;
our farmers are reaping a record
breaking harvest; our railroads are
handling an enormous and rapidly in
creasing traffic; our textile industry is
enjoying renewed activity; dry goods
merchants are endeavoring to avert an
undesirable boom; building operations
are being resumed on larger scale;
labor is well employed, and on every
hand there are signs of rushing ac-
tivity which experienced leaders are
already endeavoring to check in order
to avoid the consequences of unre-
strained or misdirected energy.
Two questions arise which demand
satisfactory answers. What are the
reasons for this new boom, and how
long will it lastl The reasons for this
widespread revival are clear and easily
understood. First and foremost, big
harvest with profitable prices for the
farmer has been secured. 1t has been
variously estimated that the products
of the soil this year will reach sum
approaching $4,000, 100000, or per
cent more than last year. Every in
telligent business man appreciates the
effect of good crops upon business. The
farmer invariably spends more freely
and the local merchant must fill empty
; shelves; thus infusing new life into
trade industry and transportation in
every direction, and particularly in the
; grain belt, where nature has been most
prolific. Next to this paramount in.
, fluence, comes inflationary monetary
conditions. There is an extraordinary
plethora of loanable funds in the
} United States, the consequence of a
long period of business depression, of
marvellous stock of gold, of the sue
eessful mobilization of our banking re-
sources under the new banking system
and of an immense accumulation of in
vestment funds following prolonged sus-
pension of new enterprise, There is
also one other influential factor in
creating the present boom, and that is
war orders. But the latter are much
less important than the two influences
lust named and far less permanent. 1t
is doubtful if all the war orders re-
ceived during the fifteen months of war
would reach $2,000,000000, which is
only about one-fifth Of our annual
! agricultural product and much less than
our annual exports, which were over
1 2,400 100000 during the fiscal yeai
preceding the war. Nevertheless, these
I war orders were powerful stimulus IN
business revival, They first awoke the
! country out of its lethargy; deverted
the public mind from discomfort; ex
J cited new activities and inaugurated q
! new speculative Juror, which without
intelligent restraint would have quick
ly wrecked the forward movement. Al
to how long the latter will last, mucf
: depends upon events which cannot ye'
be determined. If the war is mucf
prolonged, European purchases of mum
tions and food products must be con
tinued ON a large scale; thus afford
!. ing us q good market for munitions
l food products, etc. At this writing
there are no prospects for early peace
II 1t is true there is great deal of tall
>, of that nature, but with both sides st
e completely possessed by determine
tion to fight until victory is assured
J. there is little prospect of an early enc
o to hostilities. Not until decisive
i blow of great Importance has Aeei
q struck can we reasonably expect an,
! serious step toward peace.
So far as domestic influences arr
J concerned, present conditions warran
n continuance of business activity, a
J least until the results Of the next har
!, !, vest can be determined Money prom
u u ises to continue easy for some time t.
>, . come, and this combined with agricul
b tural prosperity is sure to etimulat
= new home enterprise in every direc
ton. Construction work, both in tn
4 cities and on our railroads, has bee
= deferred as much as possible for tn
y past two or three years. Shelves ar
= empty and repairs are necessary. En-
= largements will be undertaken, an
: new development must occur in man,
4 industrial lines. The demand for stee
4 is simply without precedent, chiefly ow
: ing to home requirements. Pig iron
g being produced at the rate Of owe
"a 100000 tons per month, or approx
mately 37,500,0O0 tons per year; ia
a surprising all records. Steel plant
y which have been idle for years are re
E starting. Railroads are the heavies
: buyers, having placed orders for 97OO
~ ears during the first ten months of tn
n year, against $500 cars last year; ais
n 100000 tons of rails within the sam
> period, compared with $4,000 tons
4 year ago. Structural orders aggregate
4 l,O75,0OO tons, compared with $4,000
= tons at the same time last year. Dome'
= tic shipbuilding is exceedingly active
owing to the extraordinary profits !
a ocean traffic. Steel prices are advanc
NJ ing daily, and there is more danger 0
u steel famine OF n runaway markc
:! :. than Of anything else. Eastern raj
y roads have more traffic than they ca
y handle, and both domestic and foreig
freight facilities are seriously col
ID gested. American shipbuilders are eI
r ceedingly active, and yards are turn
ing out vessels as rapidly as posibl
eager to get share Of the fabulor
y profits which foreign shipowners NJ
now reaping; the war having caused
downright ship famine.
American railroads are showing higl
VI ly encouraging increases in earning
NJ particularly such lines as Pennsylyani
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