Daily capital journal. (Salem, Oregon) 1903-1919, 1916-06-24
Peace Will Bring New
Conditions to America
New York, June Il

New York, June II, 1916.
Because of numerous ana strongly
conflicting forces very mixed situa-
tion exists in the financial district.
The war is being more vigorously
pushed than ever and, aside from a
fearful waste of life, IS costing over
$SO,000,000 daily, a goodly portion of
which is coming this way. This lat
ter sum is not all additional loss, be-
cause many millions would be spent in
any event for feeding and clothing the
millions of men if engaged in peace
full pursuits. Armies and navies would
have to be paid for even in time of
peace, and it should be remembered
that the territory and industrial plants
of two of the most important belliger-
ents have escaped thus far without
damage. The awful struggle has cost
terribly in blood and wealth, some
losses being entirely beyond calcula-
ton; but some deductions have to be
made from current outlays, and moth
ing is gained by exaggeratiOn or mis-
calculation. The financial position of
some of the belligerents will be SER
iOus matter of adjustment when peace
comes, and that period cannot be safe
ly predicted There is very sugges-
tive growth Of optimism in this direc-
ton, and belief grows with strange
persistence that the war will end dur
ing the present year rather than face
another dreadful winter.
Expectation Of peace must nave
some foundation; though whether it
has its origin in WEAKNESS Of spirit a.
mong those who suffer or recognition
of coming disaster by those who gov.
ern, cannot be determined. Perhaps
war madness is giving way to peace
sanity-at least let us hope so.
As peace approaches this dountry
win gradually adjust a1self to the new
conditions. A few departments of in.
dustry may suffer, but many more
will benefit by return to the normal
Temporary reactions may come with
or after peace, but it stands to reason
that in the long run the world will
benefit by tae restoration of product
i've efforts and the stOppage of de-
struction. Very likely the recupera
tive powers of all the contestants will
be greater than expected We will
lose much of the munitions traffic, but
may look for expansion in steel and
other industries, in foreign trade, in
shipping, and in development of the
many enterprises deferred by war
This country is wonderfully strong in
dustrially and financially, and is bet
ter prepared in many respects-costs
of production expected-fOr trade ex
pansion than any other nation.
Another favorable factor is the po'
litical outlook at home. Many bust
ness interests are gratified at the nom
ination of Mr.. Hughes as the Republi
can candidate, since his leadership NOT
only strengthens their hope of success
but also assures a campaign free OF
unnecessary animosities and disturb
ances. The nomination of Mr.. Wilson
means a check to extreme radicalism
As already stated in these adviees, the
chief issues will be patriotism, pre-
paredness and the tariff, the two for
mer including a more vigorous though
peaceful foreign policy. Since there
is no great division of opinion about
these problems, the outlook is for a
comparatively quiet, although lively
campaign. The output Of new legisla
tion will be at a minimum
Gold imports dave been renewed,
over $5O,OO0000 having already arriv.
ed, evidently with the intention on the
part Of London of keeping the ex
change situation in a favorable posi-
ton and preventing the firmer rates
which looked probable a week or two
ago. Thus far the exchange situation
has been skilfully handled, in spite of