Daily capital journal. (Salem, Oregon) 1903-1919, 1917-05-16
ARE ENTERING WAR


some the lowest since the war began.
aud there Is every reason 10 believe that
the government and banking Interest,
working harmoniously together. as they
are, will grcatly minimize the effect Of
the loan upon both the money and se
/ curity markets There will be no tvinn
/ up of funds and no forced Hauidatiop
/ arising from the loan, although there
may be scattered selling here ana there
OF high grade securities by intending
subscribers TO the new loan. The fact
that last wear We absorbed over S2 600
uuu,uoO OF foreign bonds aud foreign
holdings of Americans should be reas-
surfing proof of our investment capacity.
High commodity prices are stil one
| of the most marked aud disturbing ef
tcctS of war. Duu's index figure for
May ] stands at S20S,l35, against $3.50.
| OH month ago. Prices are likely 10
bc still further enhanced by the new
tax hill which will fau with moro on
less severity directly or indirectly upon
almost every commodity aud every form
.of activity. At present no immediate
relief rs in sight against the high cost
OF living. Profits, too, viii hc affected
by the new tax bill, taxes being cspc.
cially pressed in this direction. The in
evitable result of this will be to enforce
economy among the great mass of con.
sumers. Intelligent economy is one Of
the most important problems OF the dav. Z
An indlserimlnate stoppage of buying
by all classes of consumers would be
distinctly harmful and is not at all .
necessary, Real economy must come
from the stoppage of waste and extrav. !
agance, accompanied by increase Of pro. 4
duction wherever possible, not to speak
of giving employment TO those usually
lille. Our food situation is aggravated
by an unsatisfactory crop outlook. The
world s cereal crops Of the last harvest
proved IL - per cent below the aver,
age of the last five Tcars. and had il !,
not been for the liberal surplus in this
country left from two bumper crops,
conditions would be much more serious
than they are, Our winter wheat cror
is in poor condition and l2,A37 900 acres
have been al andoned With fine wealth
nr this status will improve, and damage
reports have undoubtedly been used for
all they are worth, At the same time
large spring wheat crop will tend 10 off.
set the loss in winter wheat. In any
event, wheat above SO bushel, against
81 before the war, seems to have more
than discounted an unsatisfactory crop
situation.
General trade shows slowing down
tendency. New enterprises have received
a check owing to the necessities of war
finances, and the excessive costs of
production which induce a cautious spir.
t among botn manufacturers and bank
'rs, especially the latter, who are cxcr-
Using more discrimination in the grant
ny of credit The money outlook is
our banks arc in strong pc. !!
ltlon, funds are plentiful, rates reason
lblc and gold is still coming this way.
'ver $4S,000,GO0 having arrived this 1
week The latter importations are at
ributed to operations Of the British
government for the purpose of keeping
Town interest rates and facilitating cx-
hange movements. Uncertainty as to
ak legislation materially checked bust
Tess, but this restraint is only tempo
ary and before long increased activ
ty must be expected in such industries
IS are directly stimulated by the war.
The steel industry continues phenomcn-
lily active as proved by the accumula-
ion of over 100000 tons of untitled 4
riders by the Z. S. Steel Corporation;
ew high record.
HENRY CT EIVS