Daily capital journal. (Salem, Oregon) 1903-1919, 1916-03-08

New YORK, Mar. 4s-DOmesIlC anu
foreign politics dominate the entire
business situation, and these again are
chiefly influenced by war. This week
more or less unsettIement prevailed
owinO to fears of a conflict between
the president and congress. President
Wilson very properly desired to ascer-
tain the willingness or unwlllingness
of the legislature to support him in his
negotiations with Germany. In for
eign situation of such extreme delieacy
and importance as now exists, the Chief
executive could not afford to risk em-
barrassment from a division of opinion
in congress arising from party plitics;
hence his bold challenge to the senate
which brought out, as expected, solid
support. In its foreign policy at this
critical period, the country must be an
unquestioned unit, and public opinion
should in nsparing terms condemn the
taking advantage of international sit
uAtions for partisan purposes. The
consequences of such practices are far
too dangerous to permit their indul-
gence.
What will happen when the war is
over cannot be definitely measured.
In some quarters there will be violent
reactions as soon as rehabilitation on
peace basis begins, while in other
quarters there will be a resumption of
activities now held in cneck. lnfla-
tiOn resulting from plethora of money
and huge war purchases has not yet
run its course; and the higher prices go
to the more severe will be the reaction
The true prevention or offset against
these contingencies is a clear apprecia
ton OF the inevitable; followed by
thorough preparedness for the event
when it arrives. Fortunately, our big
industrial leaders and our prominent
bankers are keenly alive to the econ
omic dangers of the times, and are set
ting their course accordingly. The
turn. when it comes, will find them en-
tirelv ready to take advantage of new
conditions. In many cases current large
profits are being utilized to wipe ou
indebtedness and to lower fixeC
charges; old plants will be written of
or new ones created, thus leaving The
best managed concerns better off afte1
the war than before it. The whole
country should begin at once eOnserv
ing its war profits, not spending waste
fully, not swelling dividends unwsely
and not too recklessly initiating Sc
curity values; but aiming to strengthen
itself for the world struggle for indus
trial supremacy which will come upol
us irresistibly wnen the war is over
That struggle will be won by the ma
ton which can produce and distribut,
the best goods at the lowest prices. tn
approaching competition is absOlutel.
unavoidable; we are not yet prepared
and the higher the level of prices an,
costs maintained now, the more diff
cult our readiustment and progress will
be later on, and the less our ultimat
ability to meet the strenuous rivalr,
with Germany and Great Britain tina
will beforced upon us. Tle war ha
not vet approached the end, nor hav
its inflationary influences yet exhaust
ed themselves; bu preparedness for tn
change that is coming should not b
confided to industrial and financia
leaders,, and conservation of our re
sources will be the policy of all pru
dent business men until the presen
world chaos begins to clear and the ney
| !
Business Booming,
General business conditions at hom
continue highly favorable. Bank clear
ings are satisfactory, running about 8
per cent aneld of last year, the great
est activity being in states east of tn
Alleghenies. No more striking evi
dence could be found of the violen
changes which the great conflict acros
the sea has wrought on this side of tn
Atlantic than in our own steel trade
which maintains unchecked its head
long and sensational upward mOvemen
in prices and production. Many mill
! are sold anead into 1917 at unheard o
profits. The copper industry also show
extreme activity, closely paralleling tn
course of steel in prices and production
] The same is partly true of other metals
7 Petroleum is also rising to sensations
e level owing TO the tremendous deman
q both at home and abroad for motor pul
i poses. In the chemical industry man
% products have shown spectacular aC
4 vances as a result of scant supple
. which can usually be traced to the d,
mands of war. Needless to say the s,
e curities of these companies nave mad
. large advances and are common tavO
4 ties in speculation.
. There has been a wide revival in ne
!, enterprises. The new corporate issut
T.. reported since January ] aggregate
j. over $49G0O0,000, compared with $39l
q 100000 last year, an increase of $l05
000,0 the year before. These are III
q usual gains and some deduction must !
y made for the transformation of capita
= but in the main the increase was chic
= ly in new concerns in the steel, cope
}. petroleum and other industries direct
4 affected by the war. There was also
u large increase in the number of ne
shipping concerns, the total of whiC
- organized since the war aggregate
over $j0,000,000, also the total confer
- plated in President Wilson 5 shippir
bill American ship owners engaged
foreign trade are making fabulous pro
= its, freight rates in many instances b
l. ing ten times what they were befoi
g the war, while ships have risen tw
s three and four times their original va
j. ne, paying their cost in a few voyage
i Singularly enough, there was a decrea
= in Tanulrv and Fnbruary of over 5000