Daily capital journal. (Salem, Oregon) 1903-1919, 1916-07-05


week suggest a more favorable trend.
This was particularly true of the Mex.
lean situation after Carranza had re-
leased his American prisoners. The
way is now open for mediation in order
to prevent war, against which the
United States is practically unit in
opposition. Every effort should be
made to prevent this threatened con
fliet; although relatively speaking, its
effect industrially and financially
should not be very important for a
country of the size and resourcefulness
of the United States. The regretful
part of such a struggle would be the
really unnecessary sacrifice of life a.
mong the youth of the country in a
war that nobody wants, war that ex-
cites no enthusiasm except possibly
from a patriotic determination to vim
dicate the purposes of the United
States and to give Mexico free and
stable government If forbearance
and generous consideration will pre-
vent war and bring the unruly leaders
of the Mexican people to their senses,
a great gain will have been made.
There should be no abatement in our
for war, and an abundant
force should be massei along the bor-
der to act upon unforeseen emergen.
cies. Peace, however, will be for our
own interest; not merely in preserving
the friendship Of Mexico, but also in
maintaining amicable relations with
all South American republics, who are
keenly jealous of our activities in this
direction. Conquest OF Mexican terri
tory would intensely strengthen these
fears, and certainly lay the basis for
uture friction and difficulty. In spite
of our sincere and oftrepeated good
intentions, long disturbed conditions
in Mexico and the Monroe Doctrine
are more or less obstacles to the de
sirable purpose Of bettering our rela'
tions with the republics south of us
We have been very earnestly cultivat'
ing our commercial relationship in
tnat direction; and it is necessary fol
us to pursue political friendship with
equal energy and sincerity.
While the European war is still q
dominant factor in financial affairs
it would seem as if its effects had
been well discounted for the time be
ing at least. Although recent events
have been favorable to the allies
peace is not yet in sight. There may
be n disposition to prepare the way
for peace and the readjustment which
it will compel. Cessation of hostilitie:
will unquestionably create a new spir
it of hopefulness the world over, but
the exhaustion and paralysis which Is
already insidiously creeping upon somC
of the belligerents win inevitably de
lay their recovery. To the United
States the war has opened new field'
of enterprise abroad which we will moi
readily surrender, in spite of present
high costs of production. Several OF
the great trading nations will probably
not be in position to push hard fol
trade for long period. Great Brit
ain is the only power engaged in wal
which will emerge not seriously Grip
pied Apparently she will be injured
much less than any of the other par
ticipants, in spite of~her huge nava
and military efforts; not to speak OF
bearing the brunt of financing the
war. Relatively speaking, the Unitet
States has gained position vastly mor'
than any other nation, the stimului
bein, most noticeable in our foreigT
trade, in our industries, and in our eff
forts to establish suitable foreign banl
ing facilities. When the war is owe
Great Britain and the United States
will unquestiOnably be the two lead
ing nations in the world s trade. 81
far as the United States is concerned
perhaps the most important result .oi
the war is the magnificent new visior
which it has brought to us. We ear
no longer look in only; We must lool
out also; and forever abandon the pol
ley of exclusion and self-sufficienc,
which would otherwise prevent ou
taking the position amongst nation
now open to us. Recent events hav'
created greater opportunities and i'm
posed greater obligations upon us thar
ever contemplated, and they cannot b.
shirked or dealt with ineffieientll
without serious injury TO ourselves
The more interdependent nations be
come, the more certainly will peac'
be assured. Commerce is one OF tai
best peacemakers.
Our foreign trade is smashing rec
ords at an astonishing rate. May mer
chandise exports touched S4I2, 900, 900
the largest by $6l,000,000 since thu
previous high point in March. I'm
ports were also the highest recorded
being $229,0O0,000, or sl1 100000 high
er than in any preceding month. Thes
Figures leave favorable balance TO