Daily capital journal. (Salem, Oregon) 1903-1919, 1915-12-16
Henry Clews Hopes Congress
VIII Proceed ConserUotiueLy

I tion lines are in future allowed 10
make living profit, it will be better
for all concerned. The public must
have better traffic facilities the expan-
sion Of which has been checked by un-
reasonably repressive policies of the
government and interstate commission.
1t is promising symptom that Presi-
dent Wilson suggested commission
for the purpose of studying railroad
problems, the proper solution of which
is so vital TO national welfare.
While the agricultural, industrial,
mercantile and transportation outlooks
are each. promising, the same is to be
said of the financial outlook. Our
! banking institutions are in exception.
ally good position. The new reserve
psystem works smoothly and aas vastly
increased the supply OF credit. So, too,
has the tremendous influx of gold,
amounting to about $4oO,OOO,0O0 so far
this year. There, has been an amaz.
ing expansion of credit, as is strikingly
shown by the loans of New York banks,
many of the larger institutions in New
York having shown an increase of
over 100 per cent in about year. One
concern alone has deposits of year
ago, and several Others are carrying de,
posits of over $l00,000,000, $200,000,-
600 and 1900, 100000. This growth Of
deposits is, of course, largely due to
the expansion in loans which have in
turn been greatly augmented by oper.
ations connected with the Anglo. French
loan and other important information.
al issues, not to mention the extensive
credits granted to several of the Eu-
ropean behigerents. In spite of these
| extraordinary operations, the money
market continues abundantly supplied
with funds at easy rates The stimulus
of these conditions should not be over
looked. We are already in period Of
initiation and this has much to do with
the prevailing rise in values and the
activity which that tendency inevitab-
ly promotes. conservative bankers are
alive to the dangers which the none
tary situation invites.
January dividend payments promise
to be larger than usual as result of
, trade revival at home and the effect
of war profits. A year ago the January
dividend and interest payments re-
corded amounted to about $240, 900 900,
or $l5,OO0O00 below the previous year.
This loss will be more than made good
next January for the. reason that many
dividends will be restored to their for
mer level, new dividends will be start
ed, some nave been resumed which had
entirely stopped, other regular .divi-
dends will be increased or extra. ones
paid, while not a few cumulative divi-
dends temporarily passed will be paid
off. 1t is safe to say the January dis
bursement viii be more satisfactory
than any since the depression, which
is now rapidly disappearing, began.
Speculation on the Stock Exchange
was discouraged by the Influences re-.
ferred to above, The war group has
been somewhat erratic and frequently
lower Railroad shares, likewise the
better class of industfias We're, how.
ever, well sutained. In the bond mar
ket ONE weakness developed largely
because of continud foreign sales anl
the arrival of considerable amounts
from abroad. Recent developments in
the Balkans were also unsettlng influe
ences.
HENRY CLEWS.