Daily capital journal. (Salem, Oregon) 1903-1919, 1918-03-30

prospect; also closer and more effect
live coordination of the various indus
tries for the purpose of more vigorous
Iprosecution of the war. Before this
war is ended there will be a far deep
Ter intrusion of government into bust
mess affairs than the most ardent So
cialist ever dared to believe three short
years agoj and in due season the prob
lem will be how to unscramble the
huge and cumbersome government ma
chine which we have created. The lat
esC proposal is to take over or lease the
ltelephone- and telegraph lines; our gov
Hrnment has gone still deeper into the
shipping business by seizure of the
100000 tons of Dutch ships; the War
Finance Corporation bill has passed,
and that institution will soon be af-
lfording much needed financial relief;
the president has signed the Railway
Control bill; the War Board has auth
orized continuance of present steel
schedules another three months; no lit
tile uneasiness is shown among textile
manufacturers and cotton growers in
lregard to rumOrs of price fixing; there
us also more or less opposition to price
fixing of wheat, farmers naturally con-
ltending that higher prices will stinu-
date production, while the government
dleeps an eye upon the political conse-
liquences OF any further increase in the
Itcost of living. In the latter connection
Ia significant report of the Department
aof agriculture shows that there are AZ
million more cattle, sheep, swine and
horses in the world today than. before
the war. In the United States the mum.
der of cattle before the war was Sc
millions, now about &c millions; sheep
I49.7 millions before the war, now 1879
millions; swine SO millions before the
war, now Ills millions; horses 20.9 mil
Qions before the war, now 2l.5 millions.
The effect Of war upon our great in
hustrlals has been very striking. At
first profits were immensely enhanced
| 10y heavy demands and high prices.
IGradually the latter extended to raw
materials and labor; then excessive
ilprofits began to dwindle. Now come
Iheavy war taxes, plus the surtax on
excess profits, which will materially
laffeet the results cf future profits.
Nearly all our leading industrials are
large gains in earnings; but
met results are not proportionately as
large, and in only a few cases are the
IResults of the new taxes apparent, be-
llcause in many cases this years pay
lments are being met out Of the surplus
profits in pre-war years. A list of -
annual reports of leading industrials
shows average earnings of $2549 upon
IIcommon stock, compared with $26.28 a
year ago. These declines will prob
ably become more pronounced during
the next few months. The railroad sit
uation is unchanged, except that un-
certainty has been ended by the presi-
dent affixing his signature to the War
Gontrol Bill.
Next to news from the front the
most potent factor in security move
|ments is the forthcoming loan and the
money market. The scarcity of time
money, which may continue unit latter
the next loan is floated, is still more
pronounced than desired by either the
business or financial circles. The stock
market is, however, SO thoroughly
Iiquidated that the effects of such
stringency are not very observable.
lRegarding security values, there is a
lgeneral undertone Of confidence, espe-
Totally railroads whose outlook is re-
tgdTQeu as IlucH InoTe SECURE uHHSI IHS
government control while the war
dasts. The industrials are also well
held, although increasing expenses and
ltaxes cause more discrimination among
purchasers. The security market as a
whole is additionally strengthened by
the fact that during the war the supply
bf new issues will be much restricted,
and that outside Of war loans there
will be little opportunity for invest
ment except in standard issues, which
though low in price are often scarce
and prone to advance with any IN
lerease of demand. Home conditions
and technical position certainly favor
the stock market; but its immediate
course will inevitably be largely influ
enced by events on the western front
land at Washington.
HENRY CLEWS.