Daily capital journal. (Salem, Oregon) 1903-1919, 1918-06-08
FINANClFR CONTENDS HUNS
CANNOT WIN VICTORY

poverishment, declining credit ana ruz
down physical condition. crippling the
roads until unfit for meeting war con.
ditions. The administration wisely dis.
missed all prejudice; faced facts as they
are; met a critical situation by oparat-
ing the roads as unit; granted higher
wages to labor; advanced freight and
passenger rates to compensate, and pro-
vldcd funds for needed ears and engines
The American railroad crisis has thus
far been handled by the government in
beld, intelligent and businessiike man
neT. IN time tte results should be bet-
ter service TO the public, solution Of
war traffic problems, reasonable treat
meni Of labor, and the preservation Of
railway credit; 80 that the roads under
government protection during the war
should afterwards be returned to their
owners in better condition than when
taken over. Il is this radical change in
the railroad situation which has had
much TO do with the late slow but sure
advance in this section of the market.
( In the iudustrials there has been more
OF less tgtlarity and weakness, which
also can be attributed to war and gov
cynment, to price fixing, to government
regulation TO action against pr0fiteer-
ing, to taxation of excess profits, to
war profits, and 70 expectation Of big
increase in taxes next year; all Of which
considerations viii inevitably eurtail
profits and induce more or less softness
in values Of the leading industriais. That
the decline was not greater Is because
in most eases market values had not
advanced in proportion as profits in
creased Fortunately there has been
no initiation in war industrials cores
ponGing to the rise in profits; hence the
market has been happily spared the
crisis that would have surely come IN
der ordinary circumstances.
Whatever initiation the war has
brought, it has been restricted mainly
to commodities and wages in certain in
dustries. In securities and credit there
has thus far been no initiation Of i'm
poftanee Now that the war loan Is
out of the way, a few new issues arc
being offered to the public and general
Is al more attractive rates Of interest.
SEX eral municipal issues were success
FULLY placed, and more are expected to
follow, until the government again be
gas borrowing from the banks in an
tieipGtion Of the next loan, which is ex-
pettsd in the fall The outlook for util-
i,ies, such as light, power, street rail
! ways, telephones, etc, is somewhat mix
Cd aud disconeerting, since expenses OF
: these eonccrns have risen greatly while
! publc service commissions are gcner
ally opposed TO allowing any advances
; "a compensation; pos----s usually being
tie underlying obstacle. II is quite prob
ai,,e. AowevIF, that the example Of
Washington in regard TO railroads vii
in due sesson insure better treatment
for public utilities, indications Of thai
: trend heving alreadv appeared. Th'
money market strain has easea hu'
; slightly, time leans being scarce anS
: RATES high. a condition that viii prob
+ ally continue for some time 70 come
c n tins connection President Wilson
] message on taxation and revenue IS par
{ tieularly significant. A heavy inereas'
]. in taxes is Inevitable; but the adminis
. fEation was wise IN giving the eountr,