Daily capital journal. (Salem, Oregon) 1903-1919, 1917-07-05

-fSH 4 yin, 1thuC OV, ISI !
The war makes slow progress. Their,
are signs of internal dissensions an,
weakness within Germany, but the Ger
man military leaders are apparentl,
stin unable to realize the futility O.
Keeping up the struggle. The extraordi
3 nary success of the liberty loan anC
! the enthusiastic response to the Rec
Cross appeal, not to speak of the ener
I, getle though unseen activity of oul
l military preparations, should convince
Germany s rulers that, with America 4
resources and power added to the ex
perience of the allies, a victory for the
central powers is impossible; also that
continuation of the war, bad as it may
De for the allies, is infinitely worse for
Germany, which is committing suicide
by bleeding itself to death. Yet. in
lspite of Germany's blindness, there is
one feature of the war that offers en-
leouragement, and that is the recovery
lof Russia. Slowly and surely she is
pulling herself together after the shock
OF dlsorganization which naturally fol
lowed the revolution. She, too, like
France, has been gloriously reborn.
throughout the Russian empire the
tide OF democracy is rushing fast, some
what wildly in spots, but with sweep
forward into better things not easy to
recognize amid inevitable confusion.
All that is needed is skilful pilotage
IN avoiding the rocks and steering clear
of the currents of radicalism that might
easily wreck the ship of state. Ever
since the Japanese war, educa-
ton has been doing its beneficent work
IN Russia, thanks in no small degree to
the japanese themselves; and it is hard |
" conceivable that the new Russian
leaders, group of strong, able and
nigh minded men, will treacherouslv de- |
sert their allies for the sake of Ger
many, which is not only her enemy. but |
has nothing to give in return for a
separate peace. Russia may be tempo-
rarily weakened by the revolution. but
the masses of that great empire are /
sane. They are not going to surrender
their newly gained liberty by turning
their backs upon those who helped them
gain it, and throwing themselves upon
the mereies of doomed autocracv' II
: no small source of satisfaction to
lind that a distinguished American is
playing highly important part in the
'esurrection of Russia, and to Mr.. Root
must be given large share of credit
or the recent turn of the tide in the
'ast empire. | begin to see the com
nencement of the end of this war. and
hat end is to mean victory for the
illles, which will secure for us and all
ther democratic governments perma.
Ient peace and prosperity, based on
ustlce and righteousness. The sooner
ur antagonists recognize this the bet ]
er it will be for them and for human c
ty all over the world.
The mobilization of American indus I
ry upon war basis is about completed t
1y means of the Council of National
}etense the various leading industries {
ave been brought largely under govern G
nent control. This organization is a a
ody of big business men Voluntarily e
cooperating with the, government for il
ne purpose of concentrating the whole
power of the United States 4
pom efficient conduct of the war.
lany of these men are patriotically
lv1ng their whole time to helping the
overnment without stint and without
ay BY this means the arrangement of
ldustry inevitable during war has :,
cen largely minimized, and as a result 70
Iany of the knotty problems rising In,
'om war conditions are being dealt W
18th intelligently, promptly and eff N
ently. Congress has given the presi-
ent vast power over indutry, purely o.,
as war measure; power to regulate sa
oduction and power to limit or fix o,
ices. These powers would have Great 60
serious apprehensions a few months tr
%, while now they are accepted as
cessary and in many cases advanta- M
GUS to the great need in view. No q.
Ter, and certainly no president of the on
lifted States, ever had such vast and
ried powers conferred upon him as
r. Wilson. In fact, with many it is
estionable whether too much respon-
'ility has not been imposed upon the of
overburdening it with a.
mendous and complex obligations. oe
rs is especially true of the food ~,
'blem, which has been unfortunately s Ln
ndicapped by intrusion of the prohi- ~ ~
ion ISSUE The problem of prices is "1
o one of the most difficult the ad-
has to deal with. As said un
Secretary Lane the other day, when gai
sons are going to the trenches, sac an
icing their lives, it is no time for eAl
n at home to go profiteering. There IoI
a few such individuals, and yet not
ny; the great body of business men A
ng willing and ready to patriotical- \
conform to reasonable regulation.
better tone developed ON the stock
rket owing to the Improvement in
aetary conditions. Call loans drop
from 9 per cent to 2 per cent as a
ult Of the federal reserve bank S
ion in depositing $l2S,000000 in
" York banks; also the arrival of | ~
RI $90,000,0o0 foreign gold. The VI
iod has now been passed requiringI 4
preparation for these pay
lts as well as the principal July dis
sements, which this year win figure
nearly 1920, 900, or $ls.5o0,000
'e than year ago. The stock market ,
also somewhat influenced by an us
patton of an early decision by the u u
'rstate commerce commission on the nh
road rate question. 1t was expected IEE
some lines would receive liberal IlEl
cessions, while roads in other see IElI
IS would have to be contented with Hi
Her payments owing to varying Hi
aitions in different parts of the Hi
airy. In consequence, some railroad IiIl
'es showed considerable strength IA
le others failed to sympathize. In
industrial shares temporary weak