Daily capital journal. (Salem, Oregon) 1903-1919, 1917-01-20
Denoralizing Speculation
VIII Not Soon Be Repeated

ital and labor must cooperate to main,
tain and develop its proportion.
Stocks have occasionally displayed q
weak undertone, but have now evidently
turned for q somewhat higher range.
War industrials Of course always sag
the most on peace prospects. Prices
| generally were further unsettled by an.
tieipation Of the entente's reply to the
President s peace note; also BY fears of
| disturbance in our relations with Ger.
many in event OF "a ruthless subma.
rine war" Discussion regarding the
Adamson bin created an unfavorabie
impression; as did the argument on the
eonstitutionality of the law in which
counsel argued for the right of the gov
ernment to fix prices. While these were
merely transient influences, they at
tracted unfavorable notice. But there
is another deterrent of a more perman-
ent character working slowly and sill
emily; that is the tendency of capital
to seek better returns In spite of the
enormous waste of the last two years,
, there is great abundance of money
looking for investment, and it is obvious
that there will be great demand for
new capital to replace war losses and
start enterprises long deferred, not to
speak of good prospects for continued
business activity at home. In view OF
these demands, holders of capital are
naturally inclined to insist upon bet
ter terms; just as owners of eommodi-
ties have done, and just as labor has
succeeded in doing. Such tendency
| is, temporarily at least, adverse to an
| advancing stock market, tending as it
does to depRess securities having no
prospect of increasing returns. This
probably has something to do with the
refusal of railroad shares to show the
advance to which their improved eondi.
tion entitled them.
Among the favorable factors in the
market are the abundance of money and
credit at reasonable rates, a sound bank
ing position, increasing reserves, CON
tinued large gold imports, and an active
trade in the interior coupled with fire.
quently bare shelves. The best reports
obtainable from the interior are that
trade activity at home will continue for
another season at least, and that even
If profits are not as large during the
current year as in the past, very salts
factory results will be attained. The
amount of capiSal applications for new
enterurises is hardly appreciated. In
1916 about $430,000,000 in applications
was made for new oil companies, this
being total of $3.50, 100000 since the
war began. Applications for new dye
and chemical concerns were nearly
$17o,000,000 during the war. New ship
ping companies called for $109,000 900
and war munition concerns $134, 100000
within the same period. Such unusual
development of home enterprises as
these figures imply insures continued
business activity for some time to come.
Very soon Great Britain will issue a
huge war loan, much the largest ever
recorded. None Of this will be offered
in this country. 1t is rumored, however.
that another collateral loan will shortly
be placed here for the purpose of fin
ancing British purchases upon this side
and stabilizing sterling exchange Con-
sidering recent changed conditions, it
will be interesting to see what the re-
cePaion of this prime investment will
be.
HENRY CLEWS.