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

conditions are little changed, the war
still 0verruling all other considera-
tions. That the struggle is drawing to
its close every one believes, but the
i date and the terms of peace are as
much matter of guesswork as ever.
tThe war might end muen earlier than
anticipated, provided some great event
occurred tending in that direction. 1t
is to be hoped that representations
that the end will come with the new
year will prove correct; hut such an
ticipatiOns are almost toe good TO be
true, and the struggle is quite likely
/ to be carried into the coming year,
! judging by present resisting power of
the Germans. The latter will in some
respects grow in strength as their
forces contract and fall back upon un-
devastated country, supplied with good
railroad service and nearer the source
of supplies. On the otner hand, as the
allies press forward they leave behind
them nothing but chaos, their supplies
become more and more distant, and
traffic routes will be temporarily de-
moralized. Hence should the allies
continue their present rate of success,
real progress for them will become
more and more difficult as the armies
move forward. This week marks the
second anniversary of the war. Condi-
tions have vastly changed during the
interval At the beginning the Ger
, mans were overwhelmingly on the ag-
gressive. Now the central powers are
on the defensive and driven back in
every direction, while allied prepared
ness is becoming equally Overwhelm
ing on every side. Thus far the cost
of the war to all the belligerents has
been over 40 billion dollars, and about
81 100000 900 of this amount was rails
ed by loans in the United States.
Should the struggle last another year,
as expected by Kitchener, the outlay
will run up to between 60 and 10 bill
lions; a sum utterly beyond ordinary
comprehension. Peace still seems a
long way off, and when hostilities
cease months must elapse before any
treaty of peace will be actually signed.
A Knotty Problem
After the war what' This question
is beginning to occupy public attention
quite as much as the war itself. No
mind is far sighted enough to predict
the outcome with any certainty, for in
such stupendous upheavals it is the
unexpected which usually happens.
That great social and political changes
are impending in Europe nobody doubts
probably in the direction of lessen
ing class differences and placing the
control of political power and wealth
more and more in the hands of the
great middle classes. The whole trend
the world over is to place more and
more power over individuals and in
dustries in hands of the government;
at the same time putting control of the
government still more in the hands of
the people and less in control of aris-
tocraey. In brief, democracy will re-
Give a tremendous impetus from war;
and while the cnange, whether it comes
rapidly or slowly, will be disturbing,
still to those who have real faith in
the ultimate progress of civilization
the outcome will be welcome, in the
firm hope of new era of peace and So
cial advancement.
A great may careful and experienced
observers look for a period of exces-
sive prostration among the belligerents
after the war. That there will be a
period of sever economic exhaustion,
need not be questioned, but not a few
of the prophets of distress have under
estimated tine recuperative powers of
the great nations. Great Britain, for
instance, is undergoing terrific strain
in financing OF oily her own huge ar
my and navy but also in the financial
aid given her allies. England s re-
sources are not confined to her own is
land, but must be measured also by
the enormous resources of her colonies
her huge investments abroad, and in
the fact that her immense industries
and sealbOrne commerce have contin-
ued with little interruption. A nation
carrying nearly one-half the trade OF
the world and controlling such vast
resources outside of herself is not like
ly to be seriously crippled by contest
with powers of much inferior resources.
Great Britain will probably come out
of the war in better condition than
any Of the belligerents. She will prob
ably emerge an empire solidified,
awakened, strengthened and more pow
erful than ever. Beyond question the
war has welded the empire into unit
as nothing else could Upon Germany,
however, the blow is likely to fall with
much greater severity. German finan-
ciai resources do not compare with the
British. Her foreign commerce which |
ranked second in the world will be very |
seriously crippled After the war grave !
fiscal problems will require the skill
of her best financiers if she is to es-
cape national troubles. Germany may !
also be threatened with momentous So
eial and political readjustments, and
should the allies impose heavy burdens
her recovery may be relatively slow.
Great Recuperative Powers
ct it must be remembered the recu-
perative powrs of Grmany are great.
Her people have wonderful genius
for organization, scientific thorough
ness, hard work and economy, and may
be depended upon to strain every nerve
for the restoration of national prestige.
Her territory has not and may not be
devastated by war. Her mills and her
are practically intact, and It
is doubtful if the allies, even if sue
cessful, will ever make any perceptible
inroads upon German soil. Germany 5
will be put to the great
est test imaginable, all the more sure
ly because of the awful waste of life
and skilled labor, but there is not the
slightest doubt that she will make
efforts towards recupera-