Daily capital journal. (Salem, Oregon) 1903-1919, 1917-06-16

100000. The bulk of this sum came
from Great Britain and the allies in
payment for munitions and food. In fu-
turc these imports will doubtless be
vcrv largely curtailed, if not almost en-
tirely stopped, since hereafter muni-
tons supplied to the allies will be paid
for by the home loans which our gov
eminent is now making to the allies.
OF late considerable gold has been ex-
ported, chiefly to Japan, etc, though
it is understood that this movement
win be restrained by an arrangement
to invest such balances in American or
British bonds.
Railroad Earnings High
The stimulus Of war upon American
home trade is not difficult to trace.
Clearing house returns are still run
ming per cent to % per cent ahead of
last years huge total. That this in
crease is not entirely due to initiation
of values is proved by the enormous
traffic which the railroads are handl-
ling, gross earnings showing increases
| of l2 per cent to Is per cent every
week. Our railroad system is simply
congested by the unprecedented amount
of traffic, and this in spite of efforts
to better coordinate transportation in
every direction. Practically all our rail
roads are making good gross returns.
while net results are frequently dis
appointing owing to heavy increases in
Expenses for labor and materials. I'm
less the interstate commerce commits
sion grants the entirely reasonable re-
quests for higher rates, the railroads
will soon be even more seriously Grip
pied by impairment of their financial
resources because OF the inaction of a
government body which is supposed to
be guided by reason and not by popu-
lar prejudice. The railroads are already
making extensive preparations TO cur
tail service, cutting out many passen-
ger trains and introducing other econ
omies, and this movement must neees-
sarily 80 much furtEor, unless the rail
roads receive early relief. In some
quarters there is much confidence that
| the requested 10 per cent will be grant
ed Ii certainly should be granted, and
granted without delay.
Necessaries in Lead
A noticeable feature in business il
the transference of activity from thu
unnecessary to the necessary commodi
ties. This is especially true of indus
tries affected by war, such as steel
copper, coal, petroleum, textiles, food
transportation, etc. 1t is in these di
rections that the prosperity so freely
lprcdicted and reasonably expected il
likely to develop. Undoubtedly there
Twill be intense activity in these linei
Throughout the country, as long as W,
continue to be the banker, the armorJ
and the commissary for the allies Oul
steel industry is again surprising al
records for intense activity, and prie
es continue to soar Within a year pil
iron has advanced from $22 to nearly
4 SOL, plates from A to SIG cents, sheet
from 800 to 750 cents and coke from
$2.75 to $3.50. In the rough, price
doubled during the past twelve months
t The leading concerns have alread
: pledged themselves to the government
2 TO degree that makes it impossibl
to place important outside orders wit
: any chance of early fulfillment. Rail
roads are ordering necessary equipmen
moro freely than for many months, bu
deliveries will be long postponed TO
the reason just specified. Evidently tn
} steel industry is in for a long perioC
! of strenuous activity, large profits ant
consequent prosperity. The same is tru
of the mineral Industries, and all othc
establishments concerned directly or in
directly in the production of munition
Petroleum Industry Active
Ns'se expectations are based upon tn
remote contingency of peace. Intens
activity prevails in the petroleum in
. dustry, and May was the record montl
, for new enterprises, the number of ney
oil concerns reported in tne Unite'
! States being So, with total capital o
SIC, 100000; while since the war began
the number of new concerns reporte'
was 699 with a combined capital o
$S20000,000. This shows extraordinar.
development. Twenty four new enter
'prises were announced during tn
month, with capilal OF over $47 900,
1000, making a total since the war be
Igan Of $2s2 100000. ln the chemical IN
dustry, concerns %ith an aggregated