Daily capital journal. (Salem, Oregon) 1903-1919, 1915-11-17

the market, and on the decline there
was good buying for all the more de-
slrable issues, indicating good under
tone. The war still has powerful in
direct effect upon this market Dur
ing the past week war developments
have not been of very encouraging
nature, since they suggested prolon-
cation rather than shortening of the
struggle. The possibility of further
friction with the central powers over
the conduct of marine warfare also ex-
erted an unsettling effect. The CON
tinued withdrawal of ocean tonnage for
war purposes is having a tendency to
restrain exports, the result being less
pressure of commercial bills and an in
creased firmness in foreign exchange.
The situation of the latter was favor
ably affected by the successful nego-
tiatiOns for establishing British credits
to the extent of $50,000,0OO or more
with New York banks.
As for the future of tae market,
while reactions such as those witnessed
during the last few days are probable
and necessary, the forward movement
does not seem to have reached its eli
max. Of course, there will be an end
to the present rise, but that end is not
yet in sight. The impetus of big crops
has by no means spent its force nor
is there anything to counteract the lat
ter except unfayorable developments
growing out of the war. Another very
powerful factor is the intlationary eff
feet of our huge gold supply, and the
operation of the new federal reserve
xrofa hNf nf ~, I,.
basis for a tremendous expansion of
credit The allies are bound to con
tinue coming here for large portion
Of their supplies, and having less mer-
chandise to send in payment, they must
continue to ship gold as freely as pos
sible, buying on credit what they
cannot pay for in merchandise. Of
course, this imposes a heavy strain up
on the allies wnich cannot last indef-
nitely; but their resources do not yet
appear to have been overstrained.
When the war ends there will be some
big work to do in financial remObiliza-
ton, and the ability of our financial
leaders will be taxed quite as severely
as when the war began. But Fortunate
ly there will be ample warning of any
peace movement, and many vague rum
ors must be expected before genuine
steps are taken. Moreover, prolonged
period of negotiation will be Inevitable
before disarmament becomes fact.
Many months may easily pass before
the millions of men now engaged in
mutual destruction can possibly return
to productive labor.
In about three weeks congress will
open and new set of issues will be
pressed upon public attention. The at
tacks upon capital which have contin-
ued for over twenty years, nave about
spent their force. Many of the old
abuses have been practically elminat-
ed, and this form of political enter
prise is rapidly going out of fashion,
particularly since its injurious effects
became so apparent to all concerned.
The war will undoubtedly make strong
impression upon Our political life. Eff
forts will probably be made for read
iustment of the tariff, especially where
public revenue has been affected by
curtailment of importations. Shipping
will come in for large share of at
tention, our dependence upon foreign
ships for passengers and freight be-
ing particularly humiliating to our ma
tional pride and detrimental to our COM
mercial interests. The problem Of pre-
paredness will also figure very prom
inently in public affairs. This is an
entirely new issue and one demanding
a prompt and satisfactorysolution The
early opening of congress and recent
developments in the war fully account
for this weeks setback.
HENRY CLEWS.