Daily capital journal. (Salem, Oregon) 1903-1919, 1916-02-23
War Still Plays Important
Part In Financial Game

New York, Feb, 19.-(Speeial. THE
war still plays the most important part
in local and international finance. 1t
is estimated that if the struggle con-
tinues until the end of 1916, the total
cost to all belligerents will approxim-
ate OOOOO,OO0. They are now
spending at the rate of about two and a
half billions monthly, and enormous
borrowings must be expected during the
balance of the current year. Thus far
Germany has been the heaviest borrow
er. Great Britain is the heaviest spend
err, but has paid considerable amount
Of her war costs out Of current ex'
penses, and has borrowed less than Ger
many. France is estimated to have bor-
rowed about as much as Great Britain,
but her expenses are less. Russia seems
to have borrowed much less than either,
while Austria-Hngary has been mod
crate borrower, much smaller than Tur-
key, which has paid more than its pro
portionate cost in men and money.
All the belhgerents will be heavy bor-
rowers during the remainder of the
year. In Great Britain q credit of $2,-
500, 100000, the largest on record, is
about to be asked. France is cOntem-
plating a credit Of $l,500,000,O00. Ger
many and other countries will also have
to make corresponding issues at stated
intervals. Huge as these sums seem,
they must soon be repeated if the war
continues las appears probable. Its cost
for this year alone is estimated at from
twenty-five to thirty billions. The col
lection and distribution of such vast
sums inevitably influences all financial
operations. Great Britain is massing
its resources in every direction with a
view to a prolonged struggle. The out,
look, therefore, is for a continuance of
large exports from this side, for al.
though the belligerents are less de-
pendent upon the United States for mu.
nitions than year ago, they will still
be obliged to place large orders here
for munitions materials and food pro
ducts which cannot be obtained else
where.
Some hesitation was produced by the
presidential campaign, which is NOV
fairly launched. Owing to our delicate
foreign relations, the situation is watch
ed with exceptional interest, since Sc.
rious consequences might follow any
misstep or untoward event. Fortunately
congress is in q sober state Of mind
and those in authority realize the grav
ity Of the situation. Public opinion
is also self-restrained, and unwilling tC
give way to any uncalled for outburs
Of feeling. Criticism and more or les'
irritation are to be expected in any ord
mary presidential year.
The labor situation is somewhat un
settled owing to the threatened crisij
with the coal miners and railroad EN-
ployes. There is reason TO hope, how
ever, that serious disturbances will b.
avoided and that the disputes will b
settled by conferences and reasoning
between both sides. In making thes
new demands, labor leaders should no
overlook the ultimate effects Of war uE
on themselves as well as capital. FO
the time being labor is scarce and trad
active; hence full employment at goo
wages is generally assured. The seal
city of labor is factor in their fi
vor, because in the fiscal year endin
1915 the arrivals of immigrants exceed
ed departures by only $4,000, compare
with an average influx Of about n mi
lion per annum during the past dccad
When the war is over the rush Of en-
grants from Europe to escape taxatio
and depression may be much larger tha
expected, and the higher the wages heI
tine greater TIE inrush. Tn Europe thel
vii Ee 40 }urther chortening Of hon
or raising Of wages Cor long period
come. A bitter struggle for the ma
kets Of the world is inevitable, an
economy, hard work, big output and 10
prices will be the rule. Should tn
country find itself upon a high level {
coasts when Europe resumes bushes
competition from that quarter would |
much more difficult to meet If pea,
found us laboring under the disadvan
age Of high costs Of production. Pea
viii find our output greatly cxpande