Daily capital journal. (Salem, Oregon) 1903-1919, 1916-06-28
Consequences of War Not
Serious to United States

and with its APPROACH the forces of re-
adjustment will receive fresh impetus.
Whatever slackening there may be in
domestic industry. the conviction
strengthens that our foreign trade will
make a big forward movement, and
that a vigorous contest for supremacy
in that direction is one of the inevi-
| table sequences. The United States
needs larger foreign outlets for its ex-
panding industrial energies, and must
have them; but at the end of the Eu-
rOpean war will find itself seriously
handicapped by high costs of produc-
ton; particularly in regard to labor,
which intoxicated by war prices seems
in 10 mood to make any concessions.
/ TAis will afford considerable advant-
age to our foreign rivals in their new
start, especially to Germany which
viii bend every effort for recovery Of
her lost position in the world s for
eign trade Europe also will face
handicaps in the form Of huge debts,
high cost OF living, scarcity of skilled
labor and higher wages than prevail
ed before the war. UnavOidably trade
rivalry will be keener than ever before
in the world s history; confirmation of
this being already furnished by new
elIorts in mercantile circles abroad for
tariff treaties, discriminating duties
and alliances and conventions of all
sorts. Unless all signs fail, the world
is in for series Of hostile tariffs, if
not actual boycotts against the cen
tral powers; a tendency much to be re-
GREETED and one that should be strenu-
ously opposed by all who desire a last
ing peace. Such policies will certainly
keep alive international animOsities
and friction; there being nothing
which nations more quickly resent
than interference with their CONNER
cial activities, and nothing in modern
civilization more likely to provoke an
other war than re-aliatory tariffs.
Among unsatisfactory domestic con-
ditOins thus far ignored is the prolOng
ed backwardness of the crops. This
may be offset my warm weather later
on, while GOOD prices and good sur
plus Ofw heat and ample yields of
fruit and nay are in any event COM
pensations Of importance. The only
other draw ,ack Of real significance isl
the labor OutlooK. which is a matter
OF verv serious concern to some indus
tries. The prospect of great railroad
strike overshadows the whole situation
It seems hardly possible that a section
Of railroad employees will, for their
own advantage only, throw all their
fellow workers out of employment,
recklessly bringing business and trans
portatiOn to practical standstill
throughout the country. Surely labor
leaders have not completely lost their
reason as appears; else they have com
pletely overlooked the consequences to
themselves of unduly irritating a long
suffering public opinion. In no other
direction is such great power welded
without responsibility or regard r0|
either the public Or the government. A
strike Of this character would probab-
ly lead congress to impose some form
of legal restraint against such reckless
abuse Of power
From the above it will be seen that
conditions do not favor an adyancingI
market at this time. Money is easy
and bank reserves are rising. the
Mexican crisis does not promise to ser
iously affect interest rates, since a
campaign could be easily financed by
either short time issues or the output
of Panama canal bonds Fortunately,
there is an abundance Of funds for
both lending and investment purposes.
The railroad position is generally sat
sfactory, apart from the possibility of
a strike Just referred to- The reaction