Daily capital journal. (Salem, Oregon) 1903-1919, 1918-02-23

ASIA. The losses to the Netherlands and
to Sweden are of course attributable to
our embargo, and cannot but increase
the discomfort arising from the war in
those countries. In December there was
a heavy loss of $16,000,000 in ship
ments to Russia resulting from the re-
cent collapse; and still further declines
must be expected in the January fig
ures. AS to imports, the total for the
twelve months of 1917 aggregated ST.
952,O00,000 an encouraging increase of
$560,O00,000. The preponderance of ex-
ports over imports was $3,279,000,0O0,
compared with 3,091 900 900 year ago.
This is big excess Of exports; yet the
tendency for swollen balances on tne
export side is less pronounced than in
the early stages of the war, because of
partial recovery in imports. The increase
of the latter was almost entirely due
to arrivals from Canad, and South Am
erican countries. Our imports from Great
Britain fell $25, 100000, which is mat
ter of regret; because the larger our
imports from Britain, the more easily
her obligations here would be readjust-
ed. Imports from Italy fell $24,000,000,
from the Netherlands $21 100000, from
France $10,000,000, but increased $780,
100000 to Canada and $62 100000 to
Argentina. Thus, while the war has SER
iously deranged out foreign trade, its
volume has been well maintained, and
the abnormal excess Of exports has i'm
mensely strengthened us as a creditor
nation.
The results of the new income tax
will be closely watched; for this meas
ure is full Of crude features that may
have to be modified when experience
develops their faults. The proposal for
a $50U,000 900 government bank is not
meeting with much public support, the
chief objections being its excessive con-
centration of power, its arbitrary con-
troll over security issues and its decided
] ly inflationary tendencies; the latter
finding some excuse in financial circles
as an inevitable element in war finance.
Government skill in administration,
however, must be accompanied by pri-
vate economy in all departments; not a
stringent and indiscriminate cutting
down of expenditures, but a gradual
elimination of non n-essentials and par
tial reduction of consumption in all pos
sible directions. A saving of 10 per
immense relief; it would restrain high
lprices; give production chance to catch
up with consumption; would amply
correct the deficiency in the labor sup
ply; offset congestion in traffic, and
in many ways aid restoration to the
normal. The world cannot expect to
have as much to spend and enjoy as
usual when confusion and destruction
are rampant; and it is no exaggeration
to say that individual self-denial in
domestic wants to the extent of 10I
per cent would win the war.
From now on, the fuel situation should
lsteadily improve. With the advent of
spring home consumption will decrease.
Economy in other directions is also be-
ing enforced, particularly In the mat
| ter of light, and it is probable that
the "daylight-saving movement will
be revived in due season. This would
permit starting the day one hour earlier,
thus saving an important per centage
of light and coal. Freight embargoes
are also being relieved, both by rail
and steamer, so that the necessity for
heatless days no longer exists. There
will probably be conr1nued demand
for coal throughout the spring and sum
mer, since large consumers and distrib-
uters will undoubtedly wish to stock up
and avoid being caught short again in
midwinter. The labor problem will have
| by the war; and should the coal famine
cradle proportion having been drawn off
again become acute more drastic action
to be adjusted in some way, consid-
| by the government must be expected.
In the case of labor the problem is
often one more of adjustment to new
conditions than actual scarcity, the sud
den development of great industries
having caused violent migratiOns and
advances in wages, which would have
been avoided had such changes come
more gradually.
Securities, though dominated entirely
by war, continue to fluctuate within a
moderate range. Bad news eXerts less
effect than might be expected, because
tn market is practically sold out by past
heavy liquidation. For the same reason
prices readily respond to good news,
which is more plentiful. The weakness
in liberty bonds already referred to had
| little effect. The advance in Union Pa
cific, due to maintaining the dividend
on a 10 per cent basis, strengthened
the entire list; and a strong undertone
generally is developing in railroad
/ shares, based on belief that the presi-
dent s plan of control will be adopted
and railroad credit thus effectually but
tressed. On the favorable side of the
market we have; a better railroad out
look, improvement in the fuel situation,
removal of embargoes, increased indus
trial activity, the approach of spring,
and a strong banking situation. On the
unfavorable side we have: practically
nothing but the war and the tremend-
GUS financial strain which it imposes.
| Fortunately we are better able to meet
such a strain than any other country.
German defeat is certain; then peace.
On Friday the market developed de-
eided strength on pace rumors and a
belief that the discussion already start
ed would hasten the end of the war.
/ HENRY CLEWS.