Daily capital journal. (Salem, Oregon) 1903-1919, 1916-08-10
Dividends Held DoWn to
Meet Any Contingencies

both wheat and cotton having suffered
rather serious deterioration, though
there will be sufficient of both to Sc
cure good prices and prevent famine.
The labor situation is particularly
threatening; prosperity seeming to
have turned the heads of a certain
type of leaders and making them think
that the rights of the public and own
ers are entirely subservient to the de-
mands of labor, whether reasonable or
unreasonable. The national political
campaign fairly opened with Mr.
Hughes address and will soon become
more of a factor in estimating the fu-
ture. The Mexican problem is far
from settlement and may remain so
for months to come. The money outlook
is satisfactory and time money easy ow-
ing to limited demand and abundant
supply. Money in circulation in the
United States now amounts to over
81 900, 100000, or more than 100000
600 in excess of year ago. The situa-
tion in fact has changed so completely
that New York banks are transferring
their balances to London to secure the
better rates there. Capital applications
in the United States since January !
aggregated about $2,OO0,O0O, 900, or
nearly double the amount of a year
ago. Of this vast sum nearly $450,000
600 represented foreign loans of var
ious descriptions, about $900,000,000 in
dustrial issues while railroad issues ac-
counted for another $500,00000 In
July new charters of $10O0,00 or
over in the principal Eastern States
aggregated $217, 100000, compared with
81 100000 a year ago, and $6S 5000 900
in 1914. So much for the very extra
ordinary demands upon our capital
market which cannot be prolonged
without affecting the financial situa-
tion on this side. Evidently we are
threatened by congestion in the securi-
ty market which may partly explain
the unwillingness of the market to
respond to stimulating surface condi
tions.
Trade is somewhat less active as
usual at this season. Bank elearings
last week were only 33 per cent ahead
of last year, compared with recent
gains of 40 per cent and over. Rail
road earnings are satisfactory, running
% per cent more than a year ago; the
latest report of the New York Central
showing an increase of $21 100000 of
gsoss earnings for the six months end
ing June, and $4,000, 900 in operating
expenses being highly significant. In
side selling at home and war selling
abroad, plus the constant pressure of
both new and old issues, create per
picking situation. Were the market
governed by ordinary rules, there
would be greater activity and wider,
if not sensational, fluctuations. As it
is the situation is stabilized by the
conservative spirit of New York bank
ers who are discouraging unsound
operations and looking out for Amer
lean interests. The British government
is also exerting a steadying influence,
having potent reasons for aiding the
preservation of sound conditions here
in order to facilitate its own opera
tions. Great Britain not only wants to
keep exchange at a convenient level,
but also to avoid the threatened con-
gestion of our security markets and
pave the way for new bond issue
later on. The situation therefore is
encouraging in spite of perplexities.
Steel shares are strengthened by the
fact that further big munition orders
are coming or have come this way. in
dicating vigorous prosecution of the