Daily capital journal. (Salem, Oregon) 1903-1919, 1918-12-14
FINANCIER URGES SPEEDILY
DEMOBOLIZATION OF ARMY

Dads, after about 20 years of hostile
legislation and unfriendly public opin.
ion. Their future is by no means as
sured, and a strenuous discussion in
congress is in prospect between believ-
ers in public ownership, believers in
private ownership and believers in ad
equate federal regulation. One of these
three courses will inevitably be taken
The defects and hazards of public own
ership are So self apparent that there
is some reason for hoping in its defea =
In any case if the spirit of fair deal.
ing prevails, as apparently it will, ther,
is little reason for seurity holders in
dulging the fear of their property be.
ing taken from them without jGst com
pensation. One thing is certain cap
ital cannot be had for improving and
/ equipping the railroads unless it re-
leeives decent treatment, and is allow
ed to earn fair rewards.
Nobody presumes to instruct the gov
ernment with its superior sources of in.
formation as to, what it should do IL
such situation; but the interests Of
commerce, industry and labor will be
greatly prospered by as rapid return
to the peace basis as possible. If the
government wishes to avoid popular
discomfort, is it probably does, it will
reduce the army as rapidly as possible,
keeping no more men in Europe than
are absolutely necessary for doing our
share in establishing lasting peace.
1t will also make an even more siren
uous effort at lowering burdensome tax
es than it has hitherto done, if it wishes
to avoid embarrassing criticism. Not
a few business concerns are feeling the
| injurious effects of excessive war taxes
which cripple enterprise, delay needed
Improvements and curtail the rewards
of labor. The country will welcome the
president early return, if ony that he
may give much needed attention %
these particularly urgent problems.
Activities in the financial district
continue somewhat impeded by the con-
ditions referred to. Time money is rel
atively scarce, although some relief was
furnished by action of the bankers
money committee in restoring the for
mer marginal basis of stock exchange
loans. This action will tend to increase
the supply of funds in the financial
district At the same time no very pos
tive relief can be expected either here
or abroad as long as war requirements
continue So heavy. There is no doubt
that considerable easing up could be
had at this center if war funds were
raised by regular weekly issues of treas
ury certificates instead of the more Vi
olent method of bond issues, which
strain and derange our entire monetary
system, not to speak Of the wasteful
excitement which accompanies cam.
paign methods. If such plan were
introduced the demand for none,
would be steady and met as a matter
of course with little or no arrangement
A similar system. has been in use in
England for some time past, where 25,'
100000 pounds week has been raise'
with scarcely ripple.
Values on the stock exchange fluc-
tuated within narrow limits. The Sc.
curity market is in sound condition, and
a confident undertone prevails in spit,
Of many uncertainties and monetary re,
strictions. At present the better elias,
Of railroad shares and bonds are in
most favor; next come the peace indus
trials; public utilities and munition
shares being comparatively neglected
the latter owing to declining dividend
prospects and heavy war taxation. Some
Of the industrials are also affected bs
the prospective fall in commodities
which naturally affects the placing Of
future contracts. Any decline in prices
will, however, aid in bringing down the
cost of living and So tend to anchor
ate the labor situation. The outlook
for the stock market though favorable,
is for considerable irregularity and pur
chases ought to be made with contin,
ued discrimination. Investors will fins
the present good opportunity to pick
well selected properties. Government
bonds were quite active and touched
new low levels, owing to high rates for
money, which led many subscribers to
part with portion of their holdings.
HENRY CLEWS.