Daily capital journal. (Salem, Oregon) 1903-1919, 1916-09-01

p rely temporary, and that any undu,
speculation based upon the ASSUMPTION
of their continuance might lead to dis
astrous consequences. This week, how
ever, there were notable exceptions
the outbreak of speculative activity in
United States Steel, international Mer
camille Marine and Reading affecting
+ the entire market. On Tuesday this ac-
tivity assumed aggressive proportions
Steel's Great Profits.
These securities reached the highest
prices on this movement, Steel ma King
new record, and the days total sales
ran over 100000 shares; the three
shares just mentioned constituting
abcut one-third of the days transac-
tons. The activity in Steel was based
upon the phenomenal earnings of the
company, which surpassed all possible
imagination and inevitably placed the
company in an exceedingly strong posi-.
tlon for meeting future emergencies.
These profits naturally created a be.
lief that the company cannot indefinite.
ly refuse stockholders larger share
in present prosperity. AS for the future
OF the steel trade. it is recognized that
war orders cannot last much longer, and
~ ls peace, not war, which in future
must determine the basis of progress.
Reconstruction demands after the war
VIII, as is already known, be enormous.
Neither Great Britain nor Germany will
be able for some time to come to meet
the demands upon them from this
source. The devastation of Europe will
cause an enormous demand for steel TO
restore railroad plant, equipment. fac
tories, machinery, etc; demands which
wiil not be satisfied without our help
II rs also estimated that five or six
million tons of shipping have been lost
displaced or worn out by the war. Great
Britain has already suffered to the ex.
tent of 100000 tons through subma.
rlnes, depreciation and extra wear. Her
shlpyards will face a shipbuildng boom
atter the war. Our own shipyards are
overwhelmed with orders, and probably
VIII be for two or three years to come,
while shipbuilding plants are being
started all over the world; all of which
means tremendous demand for steel
so that the United States. much the
largest producer in the world. will he
called upon to fill considerable por.
tion of this void. Prices may not con.
tinue as high as now, but with such de.
mands in view, no great decline will be
possible. whether in war or peace, the
next TWO or three years are almost sure
TO be periods of great activity in the
American steel industry and the vol.
ume of business will be large, though
the ratio of profits may decline.
While this is the period of summer
quiet, the trade outlook is regarded as
satisfactory, and this in spite of n har.
vest which promises to be below the fem
year average, Corn improved somewhat
IN condition last week, but cotton de.
Perforated further, and prices again
touched the high level Our wheat har.
vest rs now in full progress aud prices
OF TINS staple are very high. There is
httie doubt but that the profits OF az.
riculture for the current year will be
exceedingly satisfactory. The better
outlook, however, is based more upon
our industrial activity than crops, Ii
must not be forgotten that the whole
country, especially the section east of
the mississippi is powerfully affected
py the war initiation, easy money, the
enormous addition to our gold supplies,
the new federal reserve law and the
great expansion Of credit facilities, p,us
continued foreign purchases of muni.
tions. These are factors upon which
our present activity is based, and they
promise 10 carry us forward until their
toree is exhausted; contingency not
yer IN sight and one likely to be check.
90 on'y by weakened buying capacity,
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