Daily capital journal. (Salem, Oregon) 1903-1919, 1915-11-27

looking and which if properly developed
will be an important outlet for our rap
idly expanding industrial energies.
Evidently, therefore, prolonged war
will have both its gains and its losses
for the United States. Should the war
come to an earlier end than expected,
especially in view of rumored peace
movements, the results would be vastly
better for us than its continuance. We
might lose some profitable war con-
tracts, but on the other hand we should
gain infinitely more by the stoppage
of waste and the restoration of normal
activities before the much dreaded in
ternational exhaustion sets in; not to
speak of higher motive for peace,
which is to stop the awful carnage that
is drenching Europe in blood. With the
coming of peace new set of problems
will have to be met. Our financial de-
mobilization would be in order, and
many industries with have suffered by
the struggle would be permitted to re-
turn to their normal relations, vastly
more encouraging outlook than the in
flationary profits from war orders,
which thoroughly demoralize capital and
labor alike.
Home conditions show further i'm
provement. Railroad traffic is steadily
expanding, the number of idle cars has
dwindled to a minimum and in some
eases there is actual famine, due to the
congestion of traffic. The latter, how.
ever, is partly owing to the scarcity Of
ocean tonnage, the war having with
l drawn or destroyed about one-qnarter
or 100000 tons, Of the world IS ship
ping. Trade in the West shows consid
cradle expansion, particularly in the
wholesale dry goods establishments
new building exhibits a decided revival
and the steel trade continues upon 1T
unexamped boom. Our exports ais,
continue on a large, though somewha
diminished scale. The foreign exchang
situation has been greatly improved, du
to the placing Of extensive foreigl
credits and the operation Of the $500
100000 Anglo.French loan which serve
to offset the pressure Of commercial
bills upon the market. This country j
undoubtedly still a creditor nation j
the large sense Of the term, but tire
mendous change has taken place in thi
respect. Some months ago it was est
mated that the amount Of foreign caI
ital invested in this country was abou
$5,0O0,OOO,000. Since the war bega
between $20O,000,OO0 and $3O0,00O,00
Of securities have been returned; W
have taken the Anglo-French loan Q
$500,000,000; made very considerabl
loans to France, Russia, Italy, Argei
tina, Canada and other countries, b,
sides establishing big credits to Enl
land, Russia, Italy, etc, so that in on
form or another, we have advance
Europe considerably over $l,000,0O0,0
since the beginning Of the war TIL
seems like a big sum, but when thinl
ing Of war it appears to be necessar
to talk in billions instead Of millions Q
formerly. Large as the sums advance
may be our lending abilities have by 4
means reached their limit, and OF
foreign obligations have been materia
ly diminished.
There has been further hesitancy
the upward movement, chiefly owing
continued liquidation. The recent pr
nomenal rise was naturally followed b
extensive profit taking among earl
buyers. Many of these realization
were made at higher levels than exi
today, and new buyers were readil
in evidence; so the general mark,
still wears healthy aspect, the tecl
meal position having been conside
ably improved by the reduction Of
somewhat excessive long interest, A