Daily capital journal. (Salem, Oregon) 1903-1919, 1915-02-11
Henry CleWs' Weekly
Financial Letter

New York, Feb. 6.--In spite Of world.
wide uncertainty, business affairs in
the United States display continued re-
cuperatiye tendencies. The improve
ment is slow, too slow to satisfy Ameri
can optimism, but each week shows a
distinct gain both of sentiment and in
the volume of trade. 1t is well per
haps that the gain is slow, inasmuch as
it will thus prove more permanent,
while premature eonvaleesence would
surely invite unpleasant setbacks.
The soundncss Of the present forward
movement is beyond question. 1t is
based chiefly upon the abundance of
lOauable funds at reasonable rates and
good demand for our agricultural
products at generally satisfactory pric.
es. Undoubtedly the farmers of this
country are prosperous, and this graft
flying condition, coupled with the sound
banking situation, is the prime source
of our present national strength. These
are the factors enabling us to overcome
arrangements which followed the war
and to endure the industrial paralysis
brought on by a prolonged era of public
unrest and hostility to big business.
They have, as yet, by no means spent
their force, and in addition there are
other factors serving to strengthen re-
Operative tendencies. Chief of these
is the political situation. Both congress
and the administration are now reflect
ing the more reasonable attitude Of the
public toward large corporations. The
abuses of the latter which so aroused
public opinion no longer exist, Our
great industrial leaders are doing their
utmost to satisfy the public and to
give others besides themselves a fair
chance, Out Of all the bitter discussion
which has been going on for nearly a
decade there are signs Of better nm
between capital and labor,
and prospects of more harmonious rela.
tions, Notwithstanding hard times. The
fourth of March is close at hand Con.
gress will then adjourn and the coun-
try will have rest Of at least nine
months from new legislation. The new
which assemblies next Decem-
Der win be less hostile to business in
terests than the one about to expire.
The administration shows a most wei.
come desire to build up and not tear
down big business. This change in the
attitude of the federal government,
which promises to extend to state and
authorities, will do much to-
ward permitting the restoration Of con.
fidence, without which business revival
is absolutely impossible. Moreover, the
political outlook for the next two years
is for comparatively little new legisla-
tion, for the reason that the administra.
tion has practically completed its pro.
gram of prediction promises. The
country now needs a rest to adjust it.
self to the new requirements. The war
of course is still a dominant factor in
the financial situation on this side of
the Atlantic, 1t shows itself chiefly in
the extraordinary excess Of exports
over imports. Our imports are declin.
ing sharply because foreign sources of
supply have been cut off by war, while
our own demands are somewhat re-
strieted by business depression The eff.
feet of declining imports is shown in
the large losses Of national revenue, to
remedy which some temporary action on
the part Of the government may be nee
cssary,
The American railroad situation
shows Improvement from various sourc-
es. Traffic is increasing moderately,
particularly at the west. Some rail
roads are already feeling the benefit
of the interstate commerce decision and
managers generally have been more
hopeful since the latter event Bet.
ter traffic and better rates, even to a
small extent, will materially affect the
railroad policy and result in their plOc-
ing orders more freely for rails and
other equipment, all Of which must ben.
eft the much depressed steel industry,
which at least seems to have turned
from the ebb tide.
The financial situation in New York
is cminently satisfactory considering
the strain through which 1t has passed
and the worldwide decentralization re-
sutng from the war. More and more
foreign nations are turning to this side
for financial aid, now that the British
government has refused to permit new
capital applications until its own re.
uui 'emtnis are amply n nisficd, Uth'r
foreign governments have already
placed very unusual credits in this mar.
ket which will be used for the purpose
Of financing the extensive orders fm
war materials coming to this country.
Another form Of financing is present
ing itself to Americans, that is the
floating Of new enterprises in other
parts Of the world which have until re.
Gently been placed in London and other
European markets II must be remem