Daily capital journal. (Salem, Oregon) 1903-1919, 1916-04-20
Foreign Relations Unsettle
Wall Street Market Prices

war is its inflationary effect upon val
ues, especially Of commodities. Sauer
beck s London price index published on
April !, stands at 1904, compared with
'S7.9 just before the war. The rise in
March was 2.S, showing a small decline
in vegetable foods, but a considerable
rise in meats The largest advances
were in minerals aud the smallest in
textiles. These changes correspond
somewhat with our own fluctuations,
though more acute owing to the nearer
proximity Of London to the war. The
effect Of these high prices is now being
felt in rising costs Tor all lines of busi.
ness; so that what with excessive pricea
for raw materials advancing wages,
higher taxes, etc. it is plain that the
extraordinary profits which some indus.
trials have made are only temporary
and cannot be Indefinitely maintained.
Ordinarily the activity which this coun.
try is now experiencing might be ex-
pected to continue until credit became
overcxponded or buying power exhaust.
ed; neither Of which contingencies is in
sight. The masses in the United States
are still prosperous, labor being well
employed at good wages in the east,
while in the west the farmer continues
to enjoy the proceeds of good prices for
his products AS for the credit situa-
tion, that seems exceptionally sound.
The national banks at the last call
showed resources Of Sl3,S3S000,OO. or
20 per cent ahead of last year; deposits
Of SlO,790,000,000 an increase of 25
per cent in year, aud loans an increase
Of S99O,0O0O00. The total reserves of
the national banks were $685., 900 900.
or 1903 100000 in excess of legal re-.
quirements, and $lo0000,000 larger
than any previous surplus reserve.
Comptroller Williams is authority for
the statement that "thc national banks
of the country have never been in a
stronger position than they are at this
time"
The cautionary spirit developed in
business about a month ago is still pre-.
yalent, as is proved in bank cearings,
which are running about 30 per cent to
40 per cent ahead Of last year; smaller
rate than prevailed in the first two
months Of the current year Nevcrthe.
less, the volume of business is still very
large making full allowances for inflat
ed commodity and security values as
well rs foreign and domestic loans.
During the first three months of the
current year. total cleariugs in the Uni.
ted states were close upon $4,000. .0OO,.
600, and actually about 50 per cent
ahead of last year. Railroad earnings
continue to make excellent exhibits 80
roads in the third week Of March re.
porting an increase of % per cent.
gross, the gain being more due to the
growth Of traffic than to increase of
rates. Attention is now being given TO
the crop outlook, which thus far is un.
satisfactory because of late season
and the injury to winter wheat. 1t does
not follow, however that late season
rs poor one, since nature has ready
hoblt Of making compWsutions. and n
backward spring is easily offset by a
few warm days later on. The prcsiden.
hnl campaign is a factor that must be
taken into consideration. Thus far. il
mas been completely oyersbodowed by
lhe vastly more important crisis with
"ermany' The time, however is ap.
proachng for the national conventions
and political agitation Of more or less
intensity must be anticipated. The pres.
eht congress, however shows little dis.
position to enact any further legislation
thon what is most cmphoticnlly de-.
monded by public opinion. The labor
situation is still a source of considerable
concern; especially the unreasonable de.
monds OF the railroad trainmeu; who
are only one.tifth Of the railroad EN-.
ployes; whose wages have increased
nearly 40 per cent in the last 10 years.