Daily capital journal. (Salem, Oregon) 1903-1919, 1915-03-17

with rates showing downward tend
ency owing to persistent reports that
foreign governments intend to cstab.
lish large credits on this side. There
has been decided increase in the sup.
ply of financial bills resulting from
transactions of the Swiss, German and
Italian governments The supply of
commercial bills is somewhat uncertain
owing to the violent changes in the
character Of our export trade Ship
ments Of food products continue on
very liberal scale being quite sufficient
to offset the declines in cotton, oils.
very large increase in the shipments of
steel manufactures and munitions of
war The continued excess of exports,
which is being accelerated by a heavy
decline in imports. is rapidly turning
tho United States into creditor nation
The debt which Sir George Paish re.
forrod to last autumn has already been
paid and instead Europe is getting
orc>and more into our debt. We are
steadily bIying less and selling more
as result of the war. Our interest
payments, which used to be about
$350,000,000 annually, will be reduced
by the return of securities. Tho remit.
Vah'es oy alenS TO their friends IN Eu'
rope, Which are large IN the aggregate,
nave neen cut doWn materially Amer
lean tourists usually spend over $780,
100000 a year in Europe, and this out.
flow will be stopped this season. Our
ocean freight bill, usually about $780,
ooo,Ouo annually, VIII be smaller, be-
ause we only pay the freight on im'
ports. IT these tendencies continue our
toreign Indebtedness Will steadily di'
minish; rs European capital is thus
Withdrawn from the United States, and
VIII prooaoly not return in haste, be-
cause OF the high rates 1t VIII command
there when war ends and reconstrue-
tlon begins Ihc war is revolutioniz-
ing our financial relations with Europe,
ana VIII leaVe us financially indepond'
cnt IN higher degree than ever be-
tore' Our present loans are only war
loanS, nut they are OF the greatest sig
mheance; and ere long the American
banker and the American manufacturer
VIII be doing effective team work to-
gether IN the world g market This
means also new tields for the American
investor, VINO is becoming weary OF the
OBSTRUCTIVE tactlcs OF nome pohticians
me war makes $40" ana gloomy pro
gress' beiore very long Oohstantlnopi'
Is expected to ran into the hands OF tho
Mhes' inns wii be one of the mos
deeisiVe events OF the war ana ls poun,
10 nave important consequences IL VII
give RUSSIA the muen'coVeteu access al
tne year INTO southerh seas, ana WI
promptly reheVe 'he present cVngqs.io,
OF "heat ana OIL sGpphes IN the nlact
sea inns means the strengthening OF
huSsla , ilhanclaiiy aIso encapeI w"ea' .1i'
the wGrlu over as Ior the ohu OF 'n'
war, that uocs NOT yet appear TO DC ~
sight. military deaulock e&lsts or
the continent which cannot DC pr0KeI
lWilnout terrliiG loss Oh me On poIn
sldos' ~ Woulu seem as II ho'hihe
snort OF m'lllary llhahciai anu eco
nomle exhaustion on one slue OF tn'
other wouid really ehu the war At tn'
moment these contingencies 90 NOT APP
pear TO DC close az mana, ana maybe
some months VIII ehsue peiore tney can
be actually reached, unless returning
reas"n ana outside pressure shoulu 'i
hnng the struggle TO a pause Garner
than now seems hkcly
lhe business SITUATION continues un'
satisfactory me volume OF traue is
sun running below normal ECONOMY
is the rule in every, direction ana con