Daily capital journal. (Salem, Oregon) 1903-1919, 1916-12-23
Peace Proposals and Affect
New York Stock Market

the movement is one to which the die
tates Of humanity should give every
possible encouragement, and avert il
possible continuance of the war with
even greater sayagery than now.
The most difficult problem to be
encountered to effect a permanent
peace settlement will be with the Bal
kan nations.
New stage Realized
So far as the stock market is con-
eerned, new stage has probably been
reached, namely, the beginning of re-
adjus .ment of affairs to peace basis.
The rehabilitation of the great armies
on both sides may be a long way off;
vet worldwide exhaustion means that
the forces of destruction are on the
wane and that the dawn of the new era
is close at hand. While the worlds fl
nsncial mRrkeis performed strange
deeds. when the war began, it is not to
be supposed that-those same things will
be undone when the end draws near,
nor that conditions existing in July,
1918, will be in any degree restored.
That there will be extensive readjust-
ments to the new conditions goes with
uul hdA AAEs hhOuiu OC AAO I1AoS
for panic; more time viii be given for
action; diplomats will supersede gen
erals; news will be more encouraging.
and hope will east out fear. Such
changes in fundamental conditions must
be reflected in values. Munition shares
will of course be adversely affected,
though it should be remembered that
many of these have taken preeaution-
ary measures to meet all such contin-
geneies. Industrials which have been
Imduly inflated must lead reaction; and
yet these may suffer quite as much
from increased expenses as from loss
of war orders. Commodity prices have
been pushed to such dizzy heights as
TO compel economy among nearly al!
CLASSES of consumers. These high pric
es spelled extraordinary prosperity fol
the grower and the miner, not to speak
of the organized labort but they alsC
meant hazards TOR manufacturers anC
i distributors, many of whom stocked VI
more freely than usual to protect them
selves from scarcity and high prices
Our whole machinery of production anc
distribution has been thrown violen ly
Iout of gear by the European cataelysn
anu u l6Hlpoid1g SauNAhS hSuA Iva ~-.'
purpose of establishing better bal
anee will tend to really prolong present
activity and facilitate more equitable
distribution of the proceeds. Our pros
perity touched high water mark
month ago; profits were. then at thei
zenith and the evening up, or NOR
properly speaking the evening. dow
process, has already made considerable
progress.
Speculation had been carried to al
almost dangerous level and the re
straint imposed BY higher money rate
proved timely and beneficial. Caution
has been advised for several weeks past
and the technical condition of the maj
lket will undoubtedly be improved b
the heavy liquidation of the last fey
, DAYS. The monetary situation has in
proved owing to the contraction i
loans and renewed gold imoorgs. whie
have reached nearly $s6,o00,000 for thl
month and almost 5000, 0,000, 900 FIJI
wear. On Friday there was rally TO
! lowing the severe break of Thursda.
twith the indication that the worst c
, 1.-THE shock had spent its force, hence
/ lstill higher range is natural sequence
HENRY CLEWS.