Daily capital journal. (Salem, Oregon) 1903-1919, 1916-03-15

that the presidential campaign should
be on during war, but the latest dis
turbanee over our relations with Ger
many seems to have been safely passed,
and it is to be hoped will not be re-
vived. What viii happen as result of
events in Mexico cannot be estimated
at tnis writing; but aside from that
contingency the political atmosphere
has been somewhat cleared; the lines
of political cleavage are known, and it
has been proven that neither the coun-
try nor the administration wants war.
1t is perhaps too much to expect entire
freedom from such crises in view of the
titanic struggle in Europe and a heated
! presidential contest at home.
Tae European conflict has revolutions
lied foreign trade, and its effect upon
American commerce is becoming more
and more pronounced. Whatever hap
pens, the field for American enter.
1 prise abroad is bound to enlarge Not
only American products, but American
capital is sure to find larger foreign
outlet. Neither England, France, nor
Germany will be able to finance new
ventures in other parts Of the world
with anything like former freedom
South America, China, Russia, Central
Asia and other undeveoped countries
l win all require capital in large sums
when peace returns, if not before. In
some cases their needs are already ur-
egnt Tnis means big demand for
/ funds for years to come and the United
states tor obvious reasons will be the
best able to respond. This also mean
employment for American industry, and
will inevitably lead to a much greater
| development of New York as an inter
national banking center. New York is
practically sure of reaching and holding
second place in the world S financial
center, and in some instances will push
London hard for premiership. The great
nations of Europe for many years to
come must labor under huge debts and
impaired resources disasters which this
country, thanks to its isolation and
peace policy, has fortunately escaped
Domestic business conditions are sat
istactory Our railroads are still over
taxed with traffic, especially those cen
terlng at New York. Various modes
for relief for congestion have been sug
gested, such as a diversion of traffic
to other ports, stronger embargo on
certain articles Of traffic, increased de-
murrage charges, higher hghterage
rates, etc. But insufficient emphasis
mas been placed upon the Fundamental
taet that the roads are now showing the
etfects of over-regulatiOn ana the con.
sequent encouragement to enterprise
and capital out of which alone the nee
ess1ry facilities for handling freight
can be provided. Public opinion is more
disposed to give the railroads a square
deal than at any time in the past de-
cade, and public officials should be held
to strict accountability for their
share in bringing on present transpor-
tation difficulties. As result of their
mistaken zeal, capital often shuns this
form Of investment, and this fact has
not little to do with present made
quite facilities.
The labor situation is less threaten.
ing Differences in the soft coal trade
have been satisfactorily adjusted and
there is reason to believe that trouble
in the anthracite region will also be
lyerted. Labor conditions in the coal
regions nave greatly improved during
the last few years, and there is little
ground for serious complaints, such as
would enlist public sentiment AS to
the railroads the outlook is not so prom.
ising The men appear insistent in their
demands which if conceded would in.
crease railroad expenses many millions;
some estimates being as high as $l00,.
100000. As the public will eventually
have to pay these added charges, the
demands of the men have not thus far
received the support of public opinion.
Here, too, with few exceptions, the con.
diti0ns under which the employees labor
have greatly improved and a strike or
tie-up of railroads, which are tae arteri.
al system of the country, would probab-
| ly arouse much public Indignation. A
movement is being started for arbitra.
tion, which if it succeeds, will prob.
ably settle the difference or postpone
final adjustment until late in the
spring or the summer months.
Exports at New York are running
especially heavy, the total last week be.
ing $5I500,000, against 1926, 100000
the same week last year. Since Janu.
ary list, the exports through this port
aggregated $4l5,000,000 compared with
$224,O00,000 year ago. This heavy
outward freight movement at this port
has doubtless much to do with freight
congestion. The ocean freight market.
as everyone knows, is in a strangely alb.
normal state, rates having advinced
many times the normal figure. Vessels
naturally come acre with imports be-
cause higher rates and larger outward
cargoes lvo be obtained than at other
ports. This may be hard upon the lat.
ter, but New York cannot help its
natural advantages, and the rush Of
outward freight would not press upon
this port were it not the best point of
shipment for those chiefly concerned
The March government crop report
reflects the biz crops of last year, in.
lsmuch as stocks on hand at farms are
generally large. This should be safe
guard against any shortage during the
coming season. The stocks Of wheat
on farm are estimated at 90,000,00O
bushels ahead Of last year-tne average
price to the farmer, however, being 81
cents less. The amount Of corn on farms
is estimated at 23,000,000 more than
last year, and the price about seven
cents less, largely because the mer.
chantable quality was below last year.
The oats crop on hand is reported al
2lG,000,000 bushels more than year
ago, and the price about 10 cents per
busnel less.
Stock exchange operations have been
somewhat restricted. In spite Of their
better outlook, railroad shares have not
/ had their accustomed favor for reasons