Daily capital journal. (Salem, Oregon) 1903-1919, 1915-04-21
Stock Exchange Again Shows
Old Time Activity, Says ClerUs

most prolific sources Of empty dinner
pals President Wilson wisely called
halt on these tendencies, and the re.
suit is already beneficial Had it not
been for the war, there is no doubt
that this country would today have
been enjoying a period of marked re-
cuperation and prosperity. The next
important source of improvement, also
comparatively silent one, is the work
ing of the new federal reserve system.
This is having helpful effect upon
business and credit operations. Our
banking system is now upon n sound
basis and in a position to meet all en-
ergencies. Funds are plentiful to good
borrowers, and if interest rates are
| high, it is not due to home conditions,
but to forces abroad beyond our con
troll The United States is now the
only free capital market in the world.
Foreign nations are coming to us for
| financial assistance; and considering
adverse conditions, the amount of new
capital issues in this country is sur
prisingly large, and demonstrates our
healthful recuptrative abilities. For
the satisfactory monetary conditions
at home and the confidence thus in
spired the new federal reserve system
is very largely responsible.
| Another reason fof stock market re-
covery is the liberal dividend returns
ob'mnable upon established invest
mcnts at present low prices. There are
any number of desirable bonds and
high grade stocks that nok offer un-
usually attractive returns. A further
source of encouragement is the pro-
nouneed change Of public sentiment.
Confidence has taken the place of fear.
Purse strings are being loosened.
Hoarding is stopped. Funds accumu-
lated through fear, are now being re-
leased. Gold imports have been re-
sumed. The retail trade in the great
department stores in this city has ap-
parently turned the corner. The steel
industry is improving; so is the textile
industry. The demand for automobiles
is surprisingly good. rhe bogie Of for.
eign liquidation is disappearing, and
the conviction that we have fairly ar
rived at the turning point for the bet
ter, is spreading throughout the entire
country. Wall street always discounts
such movements in advance. 1t is en-
gagged in that operation just now; and,
! if we exclude the war stocks, which
have risen for special reasons, we find
that the balance of the market has not,
thus far, made any eXtravagant ad.
vance Both railroads and industrials
| Excluding the war group are still sell.
ing considerably below the pre-war
level There is little doubt that the
railroad situation will soon show de-
cided improvement. AS soon as the
volume of traffic begins to increase,
the effect of the better freight rates
will be reflected in earnings; and very
soon the crop situation will receive
more attention. In this respect the
outlook is very satisfactory, for the
reason that agricultural products gen,
orally are bringing profitable prices.
The south suffered considerably from
the recent depression in cotton, but CON
ditions in this respect are gradually
reCtifying themselves. Better prices
are being realized for the staple, and
the south will probably partly reeoup
itself through wider diversification
of product.
The outlook for the market is for
continued activity, Speculation prom.
ises to turn to securities hitherto neg.
lccted. The violent advances of the
last few weeks may of course induce
from time to time considerable profit
taking, in which evcat sharp fluctua.
tions may be anticipated, all of which
viii tend to create healthy and more
active trading market. At this writ.
| ing the market exhibits surprising
strength. HENRY CLEWS.