Daily capital journal. (Salem, Oregon) 1903-1919, 1918-08-24
Einancier Sees Good Business
Outlook In Spite Of De-
mands Of War.

| New York, Aug. 23.--The war IA
progressing very satisfactory, and the
Germans are being steqdily forced
backwards in spite Of their best resis-
tanee. Prisoners and guns have been
captured by the allies in large quanti-
ties, and the evidences Of declining NOR
ale in the German army nre increasing
daily. German commanders now realize
that the allies have seized the often
sive, and that they must choose be-
tween disaster and retirement. They
wisely take the latter Victory for the
allies is now only a question Of time.
Patience and sacrifice may still be nee
essary; but il it be true that the adj
ministration intends to send an army
Of three millions into France, the soon
er Germany surreuders the better for
her own good.
/ This Is not the season for expecting
business activity, vacations and heat
having materially intensified the usual
midsummer quiet The money market,
/ however, continues to be the chief re-
strietion upon all sorts Of business op-
,rations Funds are scarce, while cred
its are practically rationed. Our banks
are ia sound condition. and their re-
sources ample despite the tremendous
strain imposed upon them by the ext
gencies of war Preparations for the
coming Liberty loan are already well
advanced. The government this year
will, il is claimed, require a heavy
increase in bonds ana taxes for war
purposes, and though practically all Of
il will be spent in the United States,
II represents only a part Of our total
business transactions. Commodities and
wages are on a high level and with
general initiation more funds are re.
quired 70 perform a given service;
hence the limitations imposed upon
credit These restrictions are perhaps
felt more kecnly in the financial dis
trict than elsewhere. New enterprises
are postponed, the financing of others
is rendered more difficult and financial
operations generally are under rcstrie-
ton. There are some who would like
TO see such restrictions moderated in
order that business might pursue a
more natural course aud better enable
il to bear the coming burden Of tax
alton. Government regulation is bear
ing very heavily upon industry and
not always with an even hand; and,
while such restrictions are eheerfully
accepted as war necessities, there are
instances where they are positive hard.
ships and whore modification would be
helpful. There is no doubt that the
government does not wish TO render
business unproductive and the chief
complaints arise in quarters where too
much power has been placed in mex
perienccd hands.
On the stock exchange there is a
cheerful undertone, based upon the
more satisfactory course of the war.
The chief offset next to monetary
stringoncy was the new tax program
imposing rate Of so per cent upon
war profits. Secretary McAdoo's plan
seems much more feasible than that
proposed by the Ways and Means Com.
mittce IL would of course, materially
reduce the amount finally distributed
to stockholders though IL would not
impair ordinary profits, II is for the
latter reason that the big industrials
have borne the brunt of this tax with
so little injury, As most Of these indus
tries are working under government
Regulations and pricefixiug it practic-
ally amounts TO the government using
these concerns TO raise money by reg
ulating their profits and appropriating
certain proportions by taxation. indus
trials have faced more uncertainties
than any other class of securities, with
the result that the war shares have
profited immensely, while nonessen.
tials have endured more or less re-
verses Railroad shares are showing a
steadily hardening tendency owing 20