Daily capital journal. (Salem, Oregon) 1903-1919, 1916-06-24

enormous foreign purchases of muni-
tions, etc, and what with the estab-
lishment of large credits, the return
of foreign investments, and gold i'm
ports, the situation is well under con-
troll. Our home business outlook con-
tinues satisfactory. Crops are rather
backward, the composite average Of
condition, according to the government
report, being 8 per cent below last
year, chiefly on account of injury to
wheat. Farmers however, are secur-
ing good prices for their crops, and in
view of the surplus wheat carried ov-
er no scarcity is anticipated. Fruits
and hay promise big yields. Nearly
all producers Of raw materials are Sc
curing good prices for agricultural
and mineral products alike. Many di-
visions of labor, especially those en-
gagged in munitions, are securing alb
normally high wages, and these pro-
mote trade activity. War profits have
stimulated trade in many directions,
in some cases to the point Of extrava.
gance.
If we look at the reverse situation,
the unfavorable factors are fairly nu-
merous, and somewhat spotty. Per-
haps the most mfavorable feature is
the Mexican situation, which is threat
ening and will probably develop with
more or less cleaness during the next
few weeks. Another element of weak
ness is the liquidation in munition
shares, which are inevitably affected
by the shrinkage of orders in that di-
rection. The motor stocks nave also
come somewhat into disfavor, owing to
the recent manipulation, also the fail
ure of the newly proposed combination
which should be really regarded as a
wholesome feature, inasmuch as it
proves that the best of banking Opin-
ion is opposed to such wholesale and
questionable promotion schemes. Had
this flOtation been successful it would
undoubtedly have excited much hos
tile criticism and probably started an
Otner anti-corpoTation movement. One
other element of grave uncertainty
which cannot be overlooked is the Ia
Dor situation. The recent advances in
wages in the munition industries and
the spectacular profits which they
have enjoyed seem to have completely
upset the labor leaders, and a return
to normal conditions after the war
will not be easy to accomplish. The
controversy between the railroads and
their employees is also of a threatening
character, and is seriously disturbing
confidence. The steady offering of
American stocks held abroad has also
tended to prevent recovery in railroad
shares and high grade Investments that
might otherwise have occurred. Rum
ors of a United States bond issue in
this direction were suggestive. Rum
ors Of British bond issue were prob
ably without foundation, and due to
the distribution Of a large block of
these bonds as dividend by a promi-
nent munitions concern. A Russian
loan of $50,000,000 was offered and
quickly taken. 1t is also reported that
a French loan is impending, and other
nations are seeking fresh credits.
Between these two sets Of conditions
the balance appears to favor moderate
ly hopeful views. Certain specific
nearby prospects are good, while the
more distant outlook is uncertain.
From either standpoint, careful dis
elimination is necessary. Many Of
the speculative issues have had a big
rise and further liquidation is in pros
pect. On the other hand, the better
class of investments, particularly the
railroads, have been somewhat neglect
ed. There is an abundance Of money
seeking employment, and well chosen
investments can be made with conf
dence. -HENRY (LEMS.