Daily capital journal. (Salem, Oregon) 1903-1919, 1916-08-24

New York, Aug. 19.-Quite revival
developed on the stock exchange, the
market being more active and stronger
than for many weeks. Directly and in
directly the war again proved the chief
stimulus. The resumption of war er-
ders decisively affected the munition
group, and the general market stiffen-
ed under the success OF new British
loan; while railroad shares were visibly
affected by belief that there would be
no strike. The consumption of ammu-
milton in the present cruel war staggers
imagination; but Great Britain now
seems able to supply her own wants,
both as to shells and guns, and inti-
mates that she will soon be ready to as
sist her allies in this respect. Never
theless, both shells and guns are being
consumed upon stupendous scale, and
bigger repeat orders are coming to
American manufacturers than ever an
ticipated; all of which does not pretend
an early end of the war Such orders
are being placed with greater discrim-
ination than in the earlier stages of the
struggle, and are going chiefly to large
and responsible concerns whose products
have stood actual test. While new or
ders are being placed upon a better
business basis, and are not encountered
by such extravagant commissions to
promoters as marked early contracts
there is still a handsome profit to con
Germs which obtain these orders and
which, needless to say mean continued
activity and prosperity for the Amer.
lean steel industry into 1917. Some
muntion concerns are being dismantled
of their war machinery; usually those
whose profits were below expectations
or those whose output had not proved
satisfactory. The evident prolongation
of the war means a continuance of big
exports, further imports of gold or Sc
curities, also additional big credits to
the allies; all of which we can readily
handle, thus pointing to continued pros
perity. AS already intimated in these
advices, when the war ends our steel
plants will be occupied for some time in
satisfying reconstruction demands of
Europe, where railroads, industrial
plants, etc, will have to be Immediately
restored, particularly in France and
Belgium. On this account alone, many
millions of steel products will be sold
to Europe when peace is declared
Strike Seems Impossible.
At this writing, it is impossible to an
ticipate the result of the great contro-
versy between the railroads and their
employees. The consequences to both
sides of nationwide paralysis of traf-
fic are so grave and mOmentous that
a Of ril 10 ln1 Il
sible, because neither side really cares
to deliberately face the consequences
of an aroused public indignation. Per.
haps the threatening attitude of the un-
ions has not been taken with sufficient
seriousness; but in any event, the Wig.
orous initiative which President Wilson
showed in aiming for a settlement had
a quieting effect, and was undoubtedly
a prime factor in saving the country
from serious trouble. The difficulty
Will probably be adjusted by conces-
sions on both sides. Fortunately the de
mands come upon the railroads at time
when they are fairly able to meet them,
if present volume of tariff is maintain
ed; but the crisis reveals the fact more
strikingly than ever that relations be.
tween the railroads and the government
or public are at present upon basis
of injustice. Some readiustments must
be made if the railroads are to prosper
and maintain their ability to attract
capital for necessary improvements and
expansions. Under present conditions,
railroad owners work for wage that
the government restricts, does not pro.
tect, nor allow compensation for in.
creased costs of operations; while rail.
road labor is free to force its claims
upon railroads to degree that threat
ems bankruptcy for the corporations and
unheard-of Inconvenience and damage to
public interest. One side has response
bilities and restraints which it cannot
escape; the other has neither and is dis
posed to WELD its power recklessly.
Stocks Steady Market.
The formal announcement of a loan OF