Daily capital journal. (Salem, Oregon) 1903-1919, 1915-08-12

N''N' mug IG'- ne war RTOuI
of the steel shares are energeticall,
dlscounting future prosperity. War con
tracts have of course been the chiet
stimulus. Many machinery and mann
featuring plants have been turned into
mnnitlor factories, IA few of the largest
concerns faving secured enormous con.
tracts which must be filled within the
neat few months There is much exag-
geraticn as 20 both profits and size Gf
sGme Of these orders, but large profits
are unqnvstionably in sight for a a4y
SPECIAL concerns, and meanwhile the
speculative spirit has been thorough!7
aroused otter long period of torp'dity.
Ihe concerns securing war orders are
inevitably large consumers of semi.
manufactured materials, tools, ETC., and
their sub-contracts with producers of
raw materials are CHIEFLY responsible
for the present activity in the iron and
steel trade, which is daily expanding.
This industry is facing veritabie
boon. Capacity is now employed to at
least 80 per cent and many concerns
are fully employed or running over
time. Pl.ces are advancing daily AMI
promise to go considerably higher. Ii il
estimated that way contracts are absorb
ing hLp't 20 to 25 l,rr cent of current
raw materials outrur anG that domestic
trade hrs Mt yet rci cle0 anything like
,he normal level Payers, however, are
bcih@ forced place orders more free
~ than intended in crd,r to anticipate
higher rrirVs and to secure deliveries.
The building trade l., reviving. Shir
building is active and railroads are
plclng orders more freely for rolling
stock and equipment, trough rails still
sconi to hc aami vi lG: in comparison no
gle?ted The outlook for the steel trade,
however, during tho next 12 months
seems unusually roseate. Peace is not
in sight and war orders will continue.
Our own government will also probably
be a large buyer for army and navy
equipment and domestic trade is prac.
tically certain of further recovery.
When peace comes our export trade in
ears, locomotives, bridge material, etc,
should be greatly stimulated for the
reason that the territory devastated by
war will have 10 be promptly rebuilt
and deliveries will be more promptly
from the United States than |
from any other direction. Demand from
this source cannot be expected to con.
tinue. 1t is quite likely to abate later
on, especially as Germany and England |
get back to something like normal in.
1ustrial activity. Nevertheless, it is
evident that foi some time to come the .
American steel industry is in for a per.
Iod of decided prosperity. This has been
largely discounted by the rise in the
war group Of steel shares and liquida.
lion may be expected to increase as the
advance progresses.
The activity in steel will soon be re.
ileeted in better business conditions
the iron ond steel districts.
.arge movements of ore are expected on
he lakes, The railroads will benefit
rom larger traffic both ways. Labor
will be better employed at higher
wages, and the fall demand for many
rtices Of clothing and furnishings will
,e in large volume this autumn. In
he agricultural districts the outlook
S quite as promising. Some slight de.
rease in conditions may be caused by :
asst weeks unfavoraDle weather, but I
he agricultural outlook as a whole is
and the indications remain !
or good crops at satisfactory prices in J
II parts Of the country. Even the cot.
on situation is not so bad as at one /
ime represented, aud the south while
Inconvenience by the war,
hough no more than certain other sec.
ions Of the country, win doubtless 4
merge in fairly satisfactory condi.
ION.
War continues 10 dominate the mar.
et although the situation Is less {
since our foreign relations v
re decidedly more satisfactory. Our diff. 2
srences with Great Britain are in
lir way Of adjustment. They affect Il
roperty rights only and arbitration c
i'll be adequate TO settle the differ b
lees between us, Just as II has been r,
numerous controversies for the past h
ne hundred years. Our differences L
ith Germany are rather more serious.
nee they involve the safety Of Amer. ;;
an lives at sea. But fortunately Ger. tc
any has lately shown more concilia. n
ry spirit and is apparently endeavor. 81
g TO prevent any deliberately un- &c
iendly" episodes. pl
On the Stock Exchange there is a dis. re
'sition 10 pay more attention TO the 81
st class Of industrials and railroad h,
ares The latter have been neglected re
r some time past for reasons quito ri
miliar. The transportation outlook is pl
pidly improving. Good crops mean Ia
cd busiAess and larger traffic pros wi
cts at the west Activity in steel on
'ans similar conditions over large th
'tion Of the east. General business
re- will show corresponding improve. lB
mt Credit is generally sound. Col su