Daily capital journal. (Salem, Oregon) 1903-1919, 1916-10-26
Upward Surge of Value
Gains RenelUed Force

New York, Oct. 2l.-The upward
surge in values gained renewed force
This applied to commodities and securi-
ties alike, not only in the United
States, but in the world over. All neu-
tral countries are enjoying exceptional
prosperity, and in this respect the Unit
ed States far outdistances every one of
them. The war, of course is the SUI
preme influence, all other factors be-
ing Of minor Importance compared with
this one. Even our election, full as it
is of important potentialtles, is com
pletely overshadowed by the cataclysm
across the sea. This war is almost en-
tirely responsible for the scarcity of
both commodities and labor. Short
crops are factor that cannot be over
looked; nevertheless the old and sup
posedly obsolete law of supply and de-
mand is working ceaselcssly with an
energy never before experienced, be-
cause of the struggle now devastating
Europe. This week wheat and corn
touched new high points, with indica
tions that still higher figures may pos
sibly be reached All food products are
rising, and the same is true of clothing;
while our mineral industres-iron,
steel, copper petroleum, etc.-are rush
ed at a pace far exceeding the most
daring expectations of year ago. Brad
street $ commodity index number was
l2.0399 October |, an advance of %
per cent since the war began. Indus
tries dependent upon agricultural and
mineral products are reaping directly
or indirectly large profits as result
of war initiation, but their prosperity
is small compared with what has been
reached by a few of the big industries,
notably those engaged in the fahrica
tion of steel
No Change in Sight
The question forced upon our minds
is how long can such high tension pros
perity last; and have we in the United
States reached the crest of the wavel
think not; because the end of the war,
on which all this fevcrish rush depends,
is not yet in sight. Apparently there
will be no peace for many months at
least. Signs of serious exhaustion ON
either side are still wanting; reason has
lost its sway, and mad passion rules all
bcligerents. Until the power of one
side or the other is broken it would
seem that peace will be impossible. The
allies are already negotiating for an
other big loan on this side; Steel tor
munitions is being ordered deliverable
into the third quarter of 1917, and
ships, guns and munitions are being
turned out with greater intensity than
at any time during the war. Such eff
forts do not portend peace, They rath-
cr suggest further sacrifices, further
destruction and more and more waste;
although it may be that change of mind
or breakdown of strength will develop
when least expected. In any event. the
immediate outlook for peace is remote
and this conviction is the prime source
of present market strength. America
cannot avoid looking on in sorrow al
the narrowing spectacle, but our peo-
pie and our government are alike in
capable Of interfering or affecting the
issue in any way. All neutrals are
benefitng from the needs of the bel
ligerents: the United States, owing To
its industrial capacity, naturally profit
ing far more than any other. When the
war is over, this country will find it
self in Il vastly strengthened position.
1t will be financially Independent of
Europe; and out of the vast profits
made from the war, il will doubtless
be enabled to assist many of the suffer
ing nations of Europe to recover their
impaired positions by depending large
" upon this country for the capital
and material needed for reconstruction.
The world has never seen such an cx-
ample of the folly of war, or the wis
a nf WI