Daily capital journal. (Salem, Oregon) 1903-1919, 1916-04-01

these terrific Outlays are merely q part
of the penalties of war. The cost of
living has advanced seriously in all of
these countries. Food has risen over 40
per cent in Great Britain, over 60 per
cent in Germany and probably sill
more in other belligerent countries. All
the belligerents are facing initiation in
varying degrees, and they are handicap
ped in international trade to the extent
of from seven to 80 per cent, accord
ing to their relative credit, which is
eventually reflected in high priced com
modities. Of the untold human misery
no measure can be taken in the fearful
war bill which Europe must pay for in
this and many succeeding generations.
Premature peace reports caused a
slump in war stocks during the early
portion of the week, but when these
rumors proved false, recovery promptly
followed. Peace is probably in sight,
and may come earlier than expected,
yet it is still dreary months away. Ger
many continues making splendid
fight, but grows apparently weaker as
time progresses while the allies gain in
strength. Undoubtedly the latter will
persist in pursuing their advantages to
the limit, Judging by me utterances of
their national leaders and by the enOrm-
oust new contracts for rations and other
supplies still in process Of negotiation.
When peace, however, does arrive-and
its coming should be hastened by every
possible effort--it will vitalIy affect
the securities market. The war group
when it sees the end of its feverish
prosperity must be expected to decline
materially; while, us to its effect upon
other shares, that remains to be seen.
/ 1t does not yet appear that peace would
injure American stocks as a whole. Tn
some respects it would certainly benefit
them. For instance, the influx of Amer
ican securities from abroad would
quickly cease, Exchange would resume
more normal conditions. British neces.
sity for selling holdings OF Americans
would come to an end, and Germany has
practically parted with all her Amer.
lean investments The frightful destrue.
tion and diversion of capital for war
purposes would stop, and the tendency
toward dearer capital would eonse
quently gradually disappear. The men.
tai depression now weighing upon the
whole world would materially decline
and new hope with its refreshing stim
1 ulus take its place. As capital cheap
ened with diminished waste and return
! ed to normal rates, the effect would be
helpful to American shares and bonds
American capital now going into waste
full expenditure would once more bt
turned into productive enterprises
| Many a new venture has had to be post
poned for the past year or two beeaus,
of the insistent foreign demands fol
money: Our railroads and our factorie,
would have less difficulty in securing
the funds they now require. On tn,
other hand, our export trade would b,
yitally affected by peace. The export,
Of munitions would cease with III,
execution of present contracts. Thii
would mean less traffic for our rail
roads from that source. Imports nigh
revive partially, but il is well TO remem
Der that Europe will be able to sell III
little and buy only rigid necessitie
for some time to COME after the war
For foreign trade especially we will b.
obliged to seek new fields, particular,
for exports; and this our financial AM
industrial leaders are already full,
alive to. So much for the principal for
eign factors in this stock market.
Domestic influences will begin to ex
ert their natural influences when tn
war is over, If not before. Peace vii
overcome the forces which have com
pletely dominated this stock market 70
nearly two years. Money, crops and in
dustrial conditions win once more be
come the main factors upon which t