Daily capital journal. (Salem, Oregon) 1903-1919, 1917-12-15

disappointing in that it failed to pro-
vide for increased rates, and suggested
government operation as an alternative.
The whole question will be thrown into
congress and win probably be the sub
Ject of more or less strenuous discussion.
Unquestionably the best plan would be:
unity OF operation, a pooling system;
necessary loans with government guar
antee, and such advances in rates as
might be deemed necessary TO at least
partially offset increased expenses.
For some time past this market has
been suffering quite as much from fear
as from facts. The war created gen
eral feeling of depression, which, if not
resisted, undermines confidence, checks
buying power and renders it difficult to
measure events at their real value. Lit
orally the business world today is look
ing through blue glasses. There is no
doubt that the war means incaleulable
loss and sacrifice, watch it is unwise
and hazardous to underestimate. Yet il
is time to realize that even pessimism
may be overdone, leading astray those
who yield to fear. The rate Of fall in
securities here since we entered the war
is greater than the rate of fall in Great
Britain for the entire three and half
years during which she has been ac-
tually fighting. There is disposition
also to forget that this country as q
whole is highly prosperous; that we are
much the most favorably situated of all
the belligerents; that we are practically
safe from attack; that all our great in
dustries with few exceptions are intense
| ly active; that our western farmers and
southern planters are enjoying extraor-
dinary prosperity, and that wages are
rising to meet the increased cost of food
and clothing, which would have risen
far higher had it not been for govern
ment restraint. Moreover there is no
occasion for unreasonable fear regard
ing government regulation and price
fixing; experience thus far proving that
the policy of the administration has
been to allow liberal profits on all nec-
essary service, at the same tim, check
ing unpatriotic profiteering. Any other
policy would be suieial, for where else
can the enormous amount of taxes nee
essary be obtaine except from current
profits; to destroy which would be to
lose the war.
Security values fluctuated consider
aDlyj feceSSlOnb usually DclnR huceeueu
by substantial recoveries The advance
which followed announcement Of the In
terstate Commerce Commission plan was
not sustained, owing to the uncertain
ty as to what action would be taken.
Some discussion is of course inevitable,
but it seems hardly probable that con
gress will unnecessarily delay settle
ment Of the railroad problem, which is
such o vital factor in our successful
conduct of the war. Not less than a
billion dollars will be required during
the coming year to put the roads in
efficient condition. Our government is
already carrying burdens enough with
out adding the railroads; and it is not
to the interest of owners, shippers or
employees to change from private to gov
ernment control until private manage
ment has had the fair chance for
number of years. Not few good stocks
and bonds are selling below intrinsic
values, making them good investments
for the long pull. Under present unset
tied conditions, however, continued
sharp fluctuations must be expected
from day to day. The war, the action
of congress and advancing interest rates
are still the chief governing factors.
HENRY CLEWS.