Daily capital journal. (Salem, Oregon) 1903-1919, 1916-12-23

New York. Dee. 11.-Peaee proposals
from Berlin caused q severe reaction
in the stock market, especially in
shares which had benefited by the war
The announcement came upon market
already weakened by over buying, max
in the fall all the more precipitate. 4
temporary recovery followed, after
which the market became demOralized.
just what would happen marketwise in
event of an early peace is somewhat
difficult to positively anticipate II
hostilities were suspended, armies would
certainly not be disbanded until peace
terms were actually signed by all the
belligerents, conclusion that may de-
mand months for accomplishment. Dur
ing such period war orders might con-
tinue, though possibly on diminished
scale. Peace or no peace, Great Britain
will in future buy less munitions here
than formerly because she Is now pre-
pared to produce in full for herself and
in part for her allies. especially with
the forthcoming assistance from Cana
da. When peace does come, Europe
will continue TO buy steel in large
quantities for constructive instead 0f
destructive purposes. Europe will also
buy our copper, our oil and other raw
materials in large quantities in order
to fill the voids which now exist, also
to start present idle industries. Exports
of cotton alone will 20 far towards off
setting the loss of munition shipments.
Moreover. this country is not as de-
pendent upon munition orders for pros
perity as it was two years ago. We
hnVn aUptfaO a and
mentum entirely our own. We are en-
ioying an activity derived very largely
from self development Initiation has
enormously stimulated home industry,
and while war profits have undoubted-
ly -een the prime cause Of this inf1a-
tion, still the increased consumption
of many commodities and luxuries in
the United States can be attributed to
home prosperity. Even our export
trade is less dependent than formerly
upon .munition orders, which now con-
stitute less than half of the increase
and little moro than one third of our
total exports. Peace, when it does
come, will also bring another beneficial
offset in revival of imports, the lack
of which has so profoundly deranged
our foreign trade. Peace will hasten
a general return to normal conditions
in other respects, and it would be un-
safe to assume that to end the war will
be injurious to business simply because
certain industries which have been en-
riched by the world s misery must re
adjust themselves to a peace footing
Though peace is not yet in sight, it is
highly important TO recognize the
changed attitude of Germany. 1t is tht
vital factor in the whole situation, The
central powers have not won any of the
greats objects for which they started
yet they have achieved remarkable mil
itary success and displayed marvel
1ous power of resistance to the allies
which the latter will have to take into
consideration. Germany may nevei
have "a more opportune time for max
ing peaeep g-Ro+hzC Germany and the al
lies Should be allowed to definitely
state their position, SO that the worl,
may learn how far apart they are ant
what basis remains for mediation. II
all probability the views of both side
may prove SO widely conflicting as t,
make any serious peace movement II
this time impossible. Nevertheless