Daily capital journal. (Salem, Oregon) 1903-1919, 1917-07-11
Business Is Perplexed
By War Legislation

year ago. A number of western roads
show satisfactory gains, and these facts
undoubtedly had much to do with the
| decision of the interstate commerce
commission. On the other hand, some OF
the eastern lines made very poor ex-
hibits in May, New York Central show
ing loss of $2,900000 net and Penn
sylyania loss Of $l,000,000( and this
in both cases in spite Of large gross
gains. The effect of the decision was
partly discounted by the fact that the
twenty leading companies were selling
ut about 92, or Is points below last
year. The twenty leading industrials
are selling at about SO, or 3 points more
than year ago.
This market has apparently about dis
counted for the time being our entry
into war. The success of the liberty
loan created an undertone of confidence
which prevents any apprehension that
may otherwise have existed III view OF
a repetition of the loan later on. Mon
ey has become easier, due to the July
payments and the outlook is for easy
rates to continue for some time to come
Nevertheless, the diversin by the gov
ernment OF such vast savings from the
ordinary channels of investment means
economic changes Of much consequence.
This is illustrated by the monthly
statement Of new domestic capital is
sues, which were given at only $6O,.
600 900, compared with $l5000O,OO0
year ago, a decrease of about $9O,0OO.-
900. This shrinkage must be attributed
Amost entirely to preparations for the
liberty loan. During the six months
ending June, the total new issues, ex'
cludino government borrowing, was
$g4G, ,670 900, compared with 1881,
900 900 q year ago, decrease of 1885,
900. 900. The greatest decrease was in
railroads -$l0l 100000, and in public
utilities, $l36, 100000, the two lines of
investment most affected by hostile
public opinion and legislation. On the
other hand. the amount of new 1neor'
porations of 100000 capital or more in
June was 1929, 900, compared with
1927 100000 a year ago. These latter
figures show that new enterprise Is
still much alive, shipping, oil and min
ING concerns accounting for the prln'
cipal increases. New shipping concerns
alone constituted more than $S0,OO0,-
600 of the total, while since June lst,
concerns aggregating more than $500
OOUtUVU III tullNAAs VI PPN1NNN1NNN
Of last year, have been Incorporated;
The shipping boom is certainly one OF
the most remarkable industrial move
ments in our history. This is America
answer to the submarine.
On the Stock Exchange there is a
less hopeful feeling, notwithstanding
continued business activity, easier con
ditions in the money market and furth'
er gold imports. The financial district
regards in favorable light the less
stringent war tax bill which is expect
ed to raise 81 ,670 100000 instead of 81,
800 900, 900 as at first calculated, also
another favorable factor was the sue
cessful resumption of the Russian OF
fensive after long period of inaetiv..
itv and doubt. This dispelled all fear OF
a separate peace; while the continued
of the Germans to resume the
offensive encourages hopes of an early
termination of the war, which will be
fastened by our participation
The safe arrival of American troops ~
France and the vigorous aid of the
United States in financial and indus /
trial directions constitute a very po'
rent factor in Fastening peace.
HENRY CLEWS.