Daily capital journal. (Salem, Oregon) 1903-1919, 1917-03-01
Henry CleUs Speculates
on Possible War Conditions

to furnish Europe with immediate sup
plies than any other nation. Il has been
estimated that $4,000, 100000 will be
necessary to restore the devastated re-
gions into habitable and workable con-
ditions. Railroads and highways will
have to be rebuilt; likewise cities, /
towns and farms. Many industrial es-
Establishments viii also have TO be re-
built, calling for large quantities of
machinery ana fabricated materials
To Rebuild Europe
The amount Just named apparently
does not cover vast sums required TO
replace and repair worn out shipping
and railroads of the belligerents. All
means of transportation have been tre
mendously overtaxed outside of the
war zone, and there has been neither
time nor money to maintain equipment
| in proper condition. For several years
| to come Europe will need our money
ard the products of our industries be-
yond all precedent. Doubtless we shah
continue exporting raw materials and
agricultural products upon large
scale, but the striking feature in our
export trade for months after the war
viii be the great expansion in ship
ments of. manufactures. We shall,
therefore, have to lend Europe when
her people cannot pay. And this we
may do generously, for such policy
will bring its own reward in maintain
| ing prosperity within the United States
Transportation Better
! The domestic transportation situa-
ton seems to be improving. Congestion
has not been due so much to the scare
Iity of cars as to the inability of the
raili oa DIS to handle an expansion Of
traffic out of all proportion to their
lealacity BY cooperation toward more
efficient handling of ears, the searci-
ty problem has been partly solved. The
small delay in exports owing to sub
marine activities, only served to ag-
gravate this inability, and was not a
primary cause. Prolonged cold weather
was serious Inconvenience, but Feb
ruary is usually trouble month for
the railroads, severe temperatures of
ten seriously affecting motive power.
| The fundamental difficulty with the
railroads, however, is a lack of termin-
al facilities, including loading, unload
Iminal facilities are tremendously cost
lily, especially in the great centers OF
traffic; and the railroads, hampered
lby discouraging legislation, have been
unable to secure revenue and proflts
enough to attract new capital tor de-
lvelopment purposes In fact the pubic,
led by short sighted political leaders,
is now suffering from the effects OF
u ignorant antagonism against the raul
roads. Capital has been driven away,
and the public is paying the penalty OF
its own folly; hesitation on part OF the
81 interstate commerce commission TO dc
Justice to the railroads being further
z embarrassment.
i Export Will Boom
: Our export trade continues booming
: the total for January being $6l3,000,
J loco, which is much the largest on rec
, ord. Our imports for the same month
: were $24l 100000, leaving an excess Of
exports for the month of $37 ,000,00O
This abnormal excess of exports ere
| lates an interesting exchange situation
especially as the extraordinarily sue
! cessful placing of the last British bond
} issue will result in further large wal
| orders for the United States. Another
t result, suggested is the continued large
I. imports of gold. as well as further sales
} of foreign held securities in settlement
. Of British obligations.
' The market for securities during the
/ week has displayed substantial un
i dertone, suggesting that the first phase
4 of the acute strain that has been reach
| ed with Germany has been successfully
a negotiated. Nervous holders have sole
4 and their action seems to have left the
i technical position in an improved con
HENRY CLEWS.
-S-aS-s----
| How to Prevent Group