Daily capital journal. (Salem, Oregon) 1903-1919, 1917-08-23
Peace Movement Not Taken
Seriously By Allied Nations

possible direction. High prices and lib
eral profits, or the natural law of sup
ply and demand, will accomplish this
more quickly than any other means.
Farmer!s Profits To Be Huge.
Profits of the American farmer this
year will be positively phenomenal. On
the four principal crops, corn, cotton,
wheat and oats alone, it is estimated
that, if current prices prevail, the
growers profits on these four articles
will reach $4,000, 100000 more than last
year. Probably this rate of profits will
not be maintained, though they will re-
main very high. Other crops and farm
animals are also yielding extraordinary
returns; the result being that American
| farmers whether south or west, are
sure to revel in an unprecedented pros
perity, which within few weeks will
be reflected in business activity at
home. Here are excess profits that
would produce an enormous revenue if
within reach, but they are practically
exempt, because they are looked upon
and treated as privileged class. The gov
ernment has already been quite success
full in checking the rise in steel, copper
and other products. 1t remains to be
seen whether corresponding restraint
will be imposed upon the profits of
the soil as well as those of the mines, of
manufacture and of railroads.
Disturbes Business.
The financial situation is inevitably
dominated by the necessities of govern
ment financing. The secretary of the
fra bo+ eta al ho
by the announcement that he would re-
ouire $4,000, 100000 in addition to the
$4,000, 100000 Liberty loan during the
fiscal year. Needless to say the diver
sion of such vast sums in so short
period from the customary channels of
business will profoundly affect our en-
tire industrial system. OF course, many
lines of industry will be intensely stim-
ulated, but others must face consider
able repression through being deprived
Of their usual supplies of capital. AT
present there appears to be no lack of
money for attractive enterprises;
though the tide of initiation is running
strong, costs of doing business are ris-
ing, risks are increasing and much lar |
ger allowances are required for depre-
citation. In many instances, the heavy
profits of the past year have been util-
lied in operating the business, instead !
of being paid out in dividends and then
borrowing for temporary requirements.
Much curiosity is evidenced in the rate
of interest upon the next loan. 1t is
rumored that per cent will be estab-
lished which, if practical, will have
decided effect upon the bond market.
The advancing rates of interest have
already resulted in lower prices for
many high grade issues, not a few of
which are offered at attractive prices
to those who wish to secure safe in
vestments. Many railroad shares are
also selling at attractive figures to the
conservative investor.
The outlook for fall trade would be
brilliant, were it not for the many ex
traordinary uncertainties above referred
to and which induce a very conserva-
tive undertone. AS just stated, western
and southern farmers are assured of a
greater than ever known,
even if the government succeeds in
putting some restraint upon the advance
in prices of grain, meats and produce,
which are now selling at such dizzy
heights. The industrial sections of the
country are in an equally satisfactory
condition, employment at high wages
being plentiful ip all districts. There
should consequently be brisk home
demand for all the important necessi-
ties of life; also for many of the minor
comforts and necessities. The rail
roads seem to be getting less out of the
property wave than any other indus
try. Their wage and supply bills have
enormously; but no adequate
has yet been allowed j
them, as in the. case of other industries
Hence net results are poor. The rail
roads are still suffering from the po-
litical prejudices of past age, which
should no longer exist among intelligent :
people.
HENRY CLEWS. I