Daily capital journal. (Salem, Oregon) 1903-1919, 1917-10-18

and finance. In order to secure greater
} efficiency our government continues ex-
> tending its activities and strengthening
its control over industrial pursuits. Its
Liprice-fixing plans are almost finished
and are already under working oper-
alton. AS a rule, the government. has
been liberal in its decisions as to max
imum prices, and will allow producers
satisfactory gains, at the same time
checking exploitation or profiteering at
public expense. 1t is difficult to realize
the enormous expansion of government
control over industry which has taken
place since the wal began. Needless to
say that these arrangements are ac-,
cepted in a patriotic spirit as a neces-
sity during the present emergency; but
the uncertainty as to how far these ar
rangements will be cancelled when the
war ends, and the present difficulty in
securing capital for new enterprises are
effectually impeding the usual indus
trial growth. This fact is strikingiy lie
Illustrated in the latest statements of in
dustrial corporations, which for Sep
TENDER aggregated only 1886, 032, 600,
compared with $350,061, 800 a month
ago. The amount Of new capital going
into war industries has probably reach
ed its maximum, and in the future a
decline in this respect is to be reason
ably anticipated.
Liquidation Encouraged.
Among the influences encouraging
liquidation have been foreign selling Of
American securities, the sale Of consid-
cradle British collateral against loans
made in this country, the call for in
creased marking, al unsatisfactory rail
road situation despite the liberal gains /
in gross earnings shown by the last
monthly report Of the Interstate Com
merce Commission; and the liquidation
by timid holders and many others who
for patriotic reasons desired to shift
some OF their investments into the Lib
erty loan. There was also considerable
selling of public utilities on the ground
that these corporations might have diff
ficulty themselves for increased costs
by higher rates for their service,
whether gas, electricity or transporta-
ton. Public service corporations are
obliged to pay more for everything they
use, but are not allowed to charge more
for what they rave to sell, a manifest
and serious injustice. professional SELL
ing aided the decline, but this was a
small factor compared with those just
mentioned.
Encouraging Factors.
On the other hand, there are a num-
Der of encouraging influences which for
the time being are ~disregarded. Our
magnificent and extraordinary profit
able harvest is a striking instance. The
country has been favored with a bump
err crop of corn, of 3,210,000,000 bushels,
which compares with the previous high
of 3,124,000, 600 bushels. Our
crop was $50, 000, 900 bushels, or
20, 900, 900 bushels in excess Oh last year,
but considerably below the record. The
quality of the wheat is exceedingly fine,
and every bushel that can possibly be
spared will be required by our allies. For
wheat, corn, oats and cotton the prices
are extraordinarily high, and our farm
ers will revel this season in a prosperity
never before equalled or even dream
The total agricultural product of the
is fairly estimated at about
BIZ, 900, 000, 900 or $18, 600, 000, 1000, as
an estimate of 1900, 00O, 900
made in midsummer. The significance of
these figures rests in the fact that the
agricultural classes will be liberal spend
ers during the next six months, the eff :
feet of which will be to stimulate the r
for all products consumed in
he home. This prosperity will be dis
throughout the west and the
jouth. The Pacific coast is also enjoy I
great business activity; while in 4
he east the pressure upon industry to ]
upply war materials and the high
received in many departments OF
abor also insure a large consumption to /
leet domestic requirements. High prices j
will of course restrain demands in some
~uarters, falling as a positive hardship
pom those whose incomes have not cor
espondingly enlarged. The process of
diustment however is already at work,
nd will slowly develop more normal re-
atoms between supply and demand; o,
by partly lowering prices and =
artly by advances in wages. ~
Trade Becoming Normal. I'll
Our foreign trade is at last returning W
} more normal conditions. The exports FIR
1 August aggregated $490, 100000, a
ecrease compared with last year of .
20, 000, 900, due in part to the embar- Il
o placed by the government upon eX- 70
orts to neutral countries. The imports :
uring the same months were $270,000, ~,
90, an increase of $71, 000, 900. The de '
in exports and increase in i'm "A
orts will, If continued, aid in placing e
ur foreign trade upon a more normal ~
asis and improve the foreign exchange ~,
tuation; though the latter must re- a.
ain under the domination of huge for +,
On borrowings until the close of the
ar. During the past eight months our Gc
lports aggregated $4,15S, 900 900, while IL
ir imports amounted to only $2,O49, III
70, 1000, leaving an abnormal and not al
,gether satisfactory excess of exports.
Congress adjourned last week and will or
isume its operations next December. ar
-eanwhile tne political outlook will be ~
by the Forthcoming election. III
lst what the outcome VIII be it is diff =,
cult to forecast owing to the complex =
resulting from the war, which II
rerchadows all domestic issues. IN
HENRY CLEWS.