Daily capital journal. (Salem, Oregon) 1903-1919, 1916-11-25

New York, Nov. 1S.-Nar finance
and war initiation continue to be the
important factor in the security mar
kets. Great Britain, France and Russia
are each standing at the door of our
vaults asking for funds to help carry
on the war Great Britain has just
completed S300,000,000 collateral loan,
and another big loan probably on a
credit basis is not many months dis
tant. France recently negotiated a
$50,000,000 credit in this market, and
both these nations are said to be con-
sidering the early feasibility of selling
Exchequer and Treasury bills, which
American bankers would undoubtedly
be willing TO handle. The Russian gov
ernment will also issue next week about
$25,O00,000 of its new $50,0O0,000 loan.
These operations are not loans in the or
dinary sense of the term, and are small
operations compared with the huge war
bills of these nations, being chiefly
utilized to pay for the immense guam
titles OF munitions ordered in this coun-
try. The latest British transaction is
another collateral loan which will prob
ably tie up large blocks of foreign
owned American securities for consid'
cradle period, thus lessening foreign
liquidation. The next British loan prom
ises to be a strictly credit operation
These foreign demands for loans bid
fair to continue, since there is no sign
of an early termination of the war
and both sides are displaying more and
more resolution and preparation for an
even more desperate conflict with the
opening Of spring. War contracts, foi
which this country is the chief outside
supply, must continue; and payment
will have to be made in borrowed mon
ey. If we want the contracts-and we
dove will be obliged to accept the
loans; and the effect of these continued
huge demands upon our capital market
must be taken into serious consideration
when forecasting our financial future
Home Demands Growing
Home requirements for capital, it shoulC
be noted, are increasing prodigiously
our industrial plants and railroads
needing large sums for imperative i'm
provements and expansion. A great dea
of new capital is already being furnish
ed out of current large profits, although
in many instances these cannot be de
pended upon for meeting such demands
especially in case of railroads and 9th
er corporations which are not profitint
abnormally from the war. There ar'
vast amounts of capital seeking invest
ment, but the combined requirements O
domestic and foreign origin are far be
yond all precedent and must soon tent
to reduce our supply. Inevitably capi
tai will ask and obtain better terms
and interest rates must consequent.
rise in due course of time. Such
movement will naturally be slow and it
workings cannot be always discernible
| but the trend in that direction is unmis
taxable and unavoidable. One result o
these conditions is the weaker under
tone of foreign bonds owing also to con
tinued enormous offerings.
Stock market conditions are great.
confused by the variety of extraordin
ary movements. There is no doubt abou
there being considerable liquidation il
some of the industrials which have risel
to dizzy heights, or that stocks ar
steadily passing from strong into weak
er hands; also that the technical posi-
tion of the market is not so invulner
able as If was six months ago. On th
other hand there is no abatement in in