Daily capital journal. (Salem, Oregon) 1903-1919, 1918-06-29
On Western Front Enemy Has
Been Fully Checked at
Every Point

New York, June 26.-The war out
look is distinctly encouraging. On the
western front the enemy has been firm
ly held in cheek, while in Italy the Aus
trian attack proved a positive failurs.
Meanwhile American troops are pouring
into the war zone at a rate exceeding all
earlier expectations; and Germany will
soon awake TO the folly of continuing
a hopeless struggle. Perhaps the most
significant indications are the criticisms
of the kaiser by such of the German
newspapers as have the courage to
speak their minds. The Frankfurter
zeitung'', for example, one of the most
conservative and influential journals in
Germany, recently charged the emperor
with, continuing the war for the sole
purpose of enforcing German supremacy
Oh the world''; that on August 4, 1914,
"thty did not tell the German people
they Wee going to make war in order to
put down Anglo-Saxon supremacy" :,
that if they had, fthe German nation
would not have been unanimous on
this pJrt," and that the unity which
the kaiser sought, ''would have been
broken from the very first day." These
are por..sltious words, and other jour
nals are speaking in similar tones. Evi.
dently some oil the German people are
at last realizing the deception praetieed
upon them and the ruin which has been
brOught upon Tie whole German empire
by cruel, selfish ard INSCRIPTIONS mil
itary despotism, insanely plotting to
rule or ruin the civilized world. There
is nc lcngcr any probability of German
sueccs5. aud thcpgh danger is by no
means past, the athcs are evidently able
TO hold the lines until America breaks
in, as we soon shall, and turn the tide
to victory, peace and democracy. l'rus-
sianism is rushing headlong into certain
self destruction.
The local monetary situation is by no
means entirely clear. Between now and
November /, $4,000, 100000 of treasury
certificates will be issued for carrying
on the war. The first block Of $750,U0O,-
900 will be dated June 25, payable oc-
tobor n, on AZ Per cent basis; and
ether blocks win be offered to the banks
as required, probably every two weeks;
the whoIe to be refunded into long
term bonds or the Fourth Liberty loan
which is expected curing the autumn.
The banks are asked TO set aside a
slightly larger roriion Of their weekly
resources than i'll thc previous issues;
the additional burden thus imposed be-
ing an adverse sactor IN the money mar
&et. Two large payments on the third
loan are still to be made, one in July
and one in August, so that the payments
on the old and new loans overlap each
other for a reriod. il is quite evident,
therefore, that the banks will have a
full iCad to carry for the balance Of the
year, and that with huge loans and
heavy taxes to bc net, the banks will
be strictly conservative, and funds must
continue relatively tearce. The arrival
from Ottawa of nearly $9O,000,O00 was
an incident of i"tel est, though only a
slight offset to other conditions.
uur f9reign trade exhibits gratifying
gains, proving the decline of the sub
marine meAace. May exports were $685.
coo, ,"Di, the largest for that month on
record. In April the total was $5O0,000,-
go. Imports in Nav excelled all re-
cords, rcacfing fe9S,000,O0, and leaving
an excess Of exports for the month of
$2!9 000,0 600, compared with $270,000,-
900 a year ago. This recovery Of our
foreign trade is due chiefly to an in
cEeasing supply of tonnage; and there
is good reason to believe that it will
continue, because of the enormous
amount OF new tonnage now being turn
ed out in the United States and Great
Britain, and which will rapidly become
available in approaching months. Furth-
cr, the allied navies appear to have got
ten the Submarine nuisance under more
effective control; and there has been
great increase in the arrivals and de-
lpmtures Of ali American ports, the Ger
man policy Of ftightfulness having ut
terly failed TO frighten ALLEN seamen.
Another element Of substantial encour-
agement is the crop outlook One more
week of favorable weather for cotton
and wheat has followed the previous
secession of good weeks; and the pro-
mise Of bcuntcnus harvest is unusually
bright. Siring wheat has had plenty of
rain and sunshine. Cotton has also been
favored, and corn is making rapid
growth under favorable conditions.
Needless to say this, too, will serve to
hearten our allies, Who are depending
so heavily upon America during their
need. Per contra, it viii discourage the
enemy who is iu sore straits for wheat
and meat; food riots being reported in
Vienna and Berlin and other important