Daily capital journal. (Salem, Oregon) 1903-1919, 1915-01-13
New York. Jan. 9,

~pA 1NVNjNNO NNhb W Dlllloh IOnrpo7
sions, fl2,000,000 to Russia f35, 100000
to other European countries and fl0,.
100000 to the United States. Last
year British investments in tine United
States were about GlS,00O,O00 and the
year before &23,000,OO0. Outside Of
war loans, the largest single field for
British investments continues to be rail
roads, especially in India and Canada.
The total issues of new capital in the
principal states of this country in 1914
amounted to 81 ,436,00O,00G, compared
with 81, GAS, 100000 for the previous
year, a decrease Of $2O9, 100000, These
new issues for 1914 include $64S, 100000
for ponds, $525,OOO,OOO for notes and
S262 2,O0O0 900 for stocks. The changes
indicate an increase of $42,000000 in
railroad bonds and notes, but decrease
Of SG6,O00,000 in railroad stocks. In
industrial corporations there was a dc.
cline in all issues amounting to $l0,-
100000 in bonds, $5lO00,OOO in notes
and $l23,000000 in stocks. These fig
Iures show conclusiyely the depressing
effect of the continued attacks upon
business interests by the various legIs.
latures.
1t is quite evident that at present onr
industrial activities are not keeping
pace with the natural growth of the
country. Enterprise has been checked.
Capital is relatively idle, and must be
Iaccmulating in spite Of diminished
profits in many lines Of industries. As
confidence is restored enterprise will re-
yive, capital will come out of hiding
and the investment situation should
gradually improve. Although the usual
January investment demand has not yet
matpmalzed, there are indications or
coming revival. One mark of recovery
is the important new issues announced
this week by the st. Paul and the Penn.
sylvdnia railroad systems. Both a.
these organizations are about to put
out important notations, which thcy
would not be apt to offer unless in their
opinion the situation was favorable,
Another indication of reviving conf
denr2 is the increasing orders placed
by the railroads for rails, cars and 9TH
er materials. This changed attitude on
part Of railroad managers is no doubt
largely due TO the concessions recently
granted by the interstate commerce
commission, and the belief that that
body has moderated its long.contiuued
attitude Of hostility. As railroad earn
ings continue very unsatisfactory, this
display Of confidence on the part of
railroad managers is doubly assuring.
So far as tne steel industry is concerned
the volume Of orders is still very small
and prices are so low that profits must
be nominal Nevertheless, the dsposi-
ton Of the railroads, the largest and
shrowdest buyers Of steel, to enter the
market at this time, is a positive exhibi.
tion cf confidence in the future
Money continues very easy to good
borrowers, and funds are now returning
from the interior with increased free.
dom There is a continued surplus OF
currency, which, however, is being slow
ly counteracted by retirement a. the
emergency issue under the Aldrica-Vrea.
land act. A further break in foreign
exchange to the lowest figure sincn
1907 was also n favorable indication,
being chiefly due to a larger supply of
foodstuffs and cotton which are now
going outward in large quantities. A
sharp advance occurred in wheat owing
/ to foreign buying. This means increas.
/ ing profits for the western farmer and
also serves to increase the excess Of ex.
IpOrts over imports which for the month
of December are expected to reach
about Sll0OO0,0OO. The situation,
] Itbay,.,va T., la p,yov ,c r,11 ,,,.,..t ..
rather tnan exports, and the shipment
this week to Paris must be regarded as
a special transaction. Gold might come
from Canada but is virtually at a pre-,
MUM, and none Of the European ma.
tions will part with the precious metal.
The tendency Of prices on the New
| York stock Exchange was slightly 'e.
dictionary Some disappointment IS
shown at the absence Of the usual Jana.
AIRY Investment demand, and a possible
moderate offering Of stocks on foreign
account acted rs n check TO the upward
movement for the present in this mar.
ket. This is particularly true Of inter.
natimal shares, but the effect is also
detrimental to the whole market
Strength is largely confined to few
speciatcs, particularly those likely ia
be benefited by the war General trade
at home continues quiet. Consumer.
show universal tendency toward econ
omy, which materially affects business
and adds to the number Of unemployed
This is the season also when uit.of.dool
employment is at minimum. The best
conditions are found in the grain region
where farmers are obtaining war prices
for their wheat. Conversely, the poor
est conditions are found in the south
whore the war has caused sharp con.
traction in the demand for cotton in
face Of a record crop. Cotton, how
ever is now going forward with more
freedom and its low price has at least