Daily capital journal. (Salem, Oregon) 1903-1919, 1916-11-08
CLEWS SAYS TARIFF
CUTS NO ICE NOW
Demand for Our Gold Will
Compel Us to Buy Much
Abroad

New York, Nov. At was not at all
surprising in view of the numerous
cross curernts that the market for stock
exchange securities should have display
ed degree of irergularity this week,
In the first place is the important con-
sideration that the national political
campaign has about reached its point of
elimination; then there has been (2)
the sinking of another transatlantic
steamer with Americans on board under
conditions suggesting at one time the
possibility of a renewal of the subma-
rine controversy between Washington
and Berlin; (3) the successful offering
of another large loan on behalf of the
British government in this country; az
the announcement of second extra div
idend of l per cent by the dierctors of
the United States Steel corporation and
the publication of another favorable re-
port of quarterly earnings; (5) the ad-
ditional importation of gold on large
scale, and (6) the continuance of the
remarkable activity in industry and
trade that has for so long period
been such an outstanding and favoring
feature. These are the more important
news events of the week.
The national election, as factor, in a
few days may be dismissed as an i'm
mediate influence in the financial situa-
tion. The technical position that has
been assumed by many market operat-
ors is that success of the political
party that for so long has been identi-
fled with the principle of protective
tariff would mean greater security for
the industrial corporations which had
been so greatly benefited by the foreign
demands incidental to the war A pro-
tective tariff would tend to restrict in
our home markets competition of the
products of cheap labor in Europe. But
the tariff in present circumstances can
not well assume Importance as an i'm
mediate influence. Post -bellum condi-
tions involve many perplexing problems.
Europe undoubtedly win require the re-
turn of part at least of the gold that
has been forwarded to this country, and
will strain every effort to obtain it.
This will mean expectation to us of
products of foreign countries, or the ar.
fangement of additional loans on this
side of the water. Meanwhile it is OBJ
vious that with close to two billion
dollars in short term obligations already
placed by foreign countries in the Uni
ted States during the war period. the
repayment of these obligations will OPP
crate against any arbitrary demands for
the precious metal from abroad This
more especially is the case when it is
considered that in addition to granting
these large loans our own investors have
taken back very large proportion of
the American securities that for genera.
tions have been held in Europe But
the important point in connection with
the results to be shown at the polls next
Tuesday is that the attitude of either of
the great political parties on the tariff
is not likely to become an immediate
factor in the stock exchange markets,
The war is itself such a dominating IN
fluence that it tends to confine con-
sideration almost completely to such
market factors as are likely to exert O
prompt influence. Unfortunately, the
termination of the European war may
hardly be considered to occupy a posi-.
tion in this category. Hence the elee-
tion as bearing ON the tariff will for
practical purpose not be apt to act as
"a retarding influence on stock exchange
activities for the time being.
In the face of the irregularity that is
so usually associated with the closing
days of = national political campaign
remarkable investment ability that is
not confined to any section but is ma
ton wide has been demonstrated by the
absorption of the $300,000,000 British
notes that were formally offered on
Monday. So satisfactory were the sub
scriptions that the bankers decided to
close the subscription books this morn.
ing, instead of Keeping them open un.
til Tuesday next, as was the original
plan. A similar indication of the ex-
tent of the investment demand has been
the activity that has been displayed on
the bond market. The sales of bonds on
the exchange during the msnth of DC.
tober, for instance, had an aggregate
par value of SAB, 3,543, 900, which com.
pares with $l04, l22, 500 in October last
year and only $40,ss7 800 in October
1918 (the exchange was closed for bust
ness during October, l9l4.)
The quarterly statement of earnings
by the United States Steel corporation
fell somewhat below exaggerated idea:
that had previously been curernt. TIL,
total of 0s5.s17,067, however, establish
es new high level, having exceeded tn,
June quarter, heretofore the high per
iod, by more than S4.000,000, and leav
ing net surplus after allowing for tn,
amount necessary for the extra divi
dend, of s5l ,S59, ,450. These figures with
out question may be accepted as a re