Daily capital journal. (Salem, Oregon) 1903-1919, 1915-02-24

for steel products, and to this extent
improvement can be reported in the
great basic steel industry, all Of which
is at least encouraging and strengthens
the belief in q permanent turn Of the
tide. The building trade also shows
partial signs of recovery, the easier
conditions of the money market and
the low price of many raw materials
serving to somewhat stimulate con
structive operations. The most pros
porous sections of the country continue
to be the agricultural districts, where
the good harvests Of last year and the
high prices obtained for agricultural
products are making certain regions
exceedingly prosperous II is quite
natural that the communities and in.
dusties dependent upon agriculture
should share this prosperity. The re-
suit is that the country's trade as
whole is in a spotty and somewhat con
fused condition. Some interests are Of
course also profiting from the war.
Nevertheless, these orders when all
combined will constitute but small
fraction of our total domestic aud
foreign trade. Bank clearings are still
running - per cent to 10 per cent be-
low last year. Idle ears show a large
increase compared with November.
Railroad earnings are unsatisfactory.
In December the decrease on the roads
reporting was 10 per cent, and in Jan
uary their earnings showed practically
no improvement, but as the benefits Of
the recent concessions in rates begin
to appear, better results should follow.
The investment situation is unchang.
ed, There has been a fair demand for
new issues; quite as good as could be
expected in view Of many perplexing
conditions. The possibilities of large
foreign demands for new capital ap.
pearing on this side keep the invest.
ment outlook somewhat unsettled. It
is quite certain that to offset the
losses from war there will he heavy
inroads upon the supply Of new capital,
and good rates Of interest are equally
sure to be demanded. Quite a number
Of securities, however, can be selected
in this market which already offer
handsome returns to the purchaser, and
the growing belief Of brighter times
ahead seems to be an effectual barrier
against any important decline. The
market is thoroughly liquidated and
foreign selling is far from being the
element Of weakness that was feared,
At this time there is little fear Of any
further serious foreign liquidation. In
addition to the belief that liquidation
is nearly ended and that better times
are ahead the conviction is also grow.
ing that the war win not be so long
as at one time feared. Prophecies are
hazardous, and yet Indications Of ex.
haustion are too evident to be sup.
pressed or dsbeleved. When the end
Of the war is in sight, a sharp upward
movement must be expected. Mean.
while, however, stock market opera.
tions should be conducted with persist.
eat conservatism. Sharp fluctuations
are inevitable owing TO the chances Of
war; the uncertainties Of which are
proverbal.
There is one fundamental factor up.
on which to build confidence; that Is
there will be a good demand for our
food products for months to como, war
or no war We have plenty TO spnre
for export from the crops Of 1914; and
all indications point to q large acreage
in 1915. Europe It is certain will yaiso
small crops next year, even II the wra
terminates earlier than expected. For
many reasons European soil cannot ho
adequately titled this year aud II will
be years before the devastated districts
can fully rccuperate, We may be sure
therefore Of profitable prices for our
surplus food products for some time 10
come Additional reasons for con.
fidence are the early adjournment Of
congress and the failure Of the ship
purchase bill.