Daily capital journal. (Salem, Oregon) 1903-1919, 1916-04-06

arily offset by labor being generally
well employed at good wages-and in
many instances at very high wages. The
conclusion cannot be avoided that these
conditions are highly unstable. When
war ends a violent readjustment will
be inevitable. Old conditions will not
be restored. A long period of uneer-
talnty will have to be squarely faced.
This country will then find itself up
on high cost of production basis;
wages and commodities will be higher
here than abroad; our capacity for
turning out all kinds of merchandise
will be at high water mark; Europe
will need our help in rebuilding; she
will be too poor to pay our high prices
longer than necessary; the belligerents
will supply themselves ut home as far
as possible, and whether we like il or
not, this country with few exceptions
will have to endure q period of dullness
and reaction when peace ultimately
comes. That result, much as it is de-
sired, is not close at hand; and tine best
way to anticipate this reaction is to
take time by the forelocks and apply
the brakes upon the irrational tenden-
cles connected with the present upward
movement before they get beyond con-
troll. Thus we may regulate the situa.
tion; secure all reasonable profits, and
moderate if not avert tine ill cOnse-
quences that would follow an unbridled
continuance of present ill-balanced
activities. Repeated warnings have al
ready been issued from banking circles,
and not few of our industrial leaders
have also placed themselves on record
against the wild excesses which have
lately been INDUCED in; so that those
who do not take heed will have them
selves to blame. These are not times
for getting deeply into debt, but rather
for pursuing a cautious policy in all
operations entering into the future.
Tne immediate outlook for the stock
market is uncertain. Our railroads, our
mills and our merchants are all busily
employed. Material prosperity is evil
ednt on every hand. Labor is getting
its share and demanding more. Conees.
siOns have been given to coal workers
and no strike is expected, but consum-
ers will probably have to pay the in
crease. Railroad labor is making very
serious demlnds upon the companies,
which if not materially moderated will
lead to serious trouble The transporta-
tlon lines are only just emerging out of
long period of almost ruinous eondi-
tions, and the capital needed for de-
velOpment will not be Forthcoming un-
less the roads are enabled to earn fair
return on the necessary investments. In
common fairness, if the government is
going to put restraints upon the COM
panies earnings, it will also have to
protect those earnings against some of
the demands made by Overaggressive
and unreasonable labor leaders.
The chief factors Of depression in the
market for the time being are the crises
in our relations with Germany and Mex
leo. The former appears to have again
reached an inflammatory stage, the out
come of which is beyond human fore
sight at this time. The Mexican affair
is less grave, but may be tne cause of
much pernicious political activity. The
presidential campaign, though over-
shadowed by the war, is running under
full headway, and the efforts to excite
public opinion and secure votes by un-
scrupulous politicians seem quite likely
to complicate an already highly sensi-
tive and dangerous situation. These
are times, not for stirring up friction,
but for cool and straight thinking byI
citizens and representatives alike
Important French and British loans
are pending which will be a factor in
the general market. Foreign securities
are coming this way in considerable
volume, ana this movement tends to
temporarily depress values. There is a
fair demand for hioh GRADE bonds which
are relatively firm
HENRY CLEWS.