Daily capital journal. (Salem, Oregon) 1903-1919, 1918-07-13
CLEWS REVIEW ON
BUSINESS AND FINANCE

fuUV IN loans; an altOgetlLer unpfecedent
ed operation, and one that would have
been impossible but for the smooth
working of the new federal reserve sys
TEN. During the next twelve months
lit is expected that $4,000, 100000 viii
be raised. This means a continued pres.
) sure upon the money market, also that
the regular mercantile and finanela
requirements will have to take second
lplaee. The resources of the federal re-
serve banks have already declined 20
per cent, and in event of an additional
drop further stiffening of interest
rates may be anticipated. Crop require
ments will soon he felt and may rank
next to government requirements in i'm
portanee. Since completion Of the Third
Liberty loan, funds have been in some.
what better supply, considerable new
financing having been successfully
floated in June. The new securities is.
sued in that period, excluding govern
ment loans, were S253,000,000, an in.
crease Of $l94,000,0 900 over the same
month last year. About $150,000000 Of
these issues were for industrials Since
June list, the total new issues, railroads
and industrials, amounted to $6S9,000,-
O0O, or $257,0O0,000 less than year
ago. Money conditions being what they
are, It is premature to expect any lib
eral continuance of new issues, aEG :he
consequent slowing down of new enter
prise was illustrated by the total of
new charters reported i'll June in the
principal states, which amounted to only
$223OOO,00O, compared with 1923, 3,0UU,-
600 year ago.
Attention is still concentrated upon
Washington, which during the war will
continue to be a dominating factor in
business and finance. Our government
machinery is now running much more
smoothly, and there is a very evident
desire on the part of officials TO inter-
fcre as little as possible with legitimate I
business, while exercising rigid Yexclu- |
sion OF profiteering and all nonessen-
tial labor. The war is, however, a heavy |
burden, even for young giant like the
United States, and taxation weighs very |
heavily upon all classes; those who pay
little or no direct tax, carrying a lead |
uneonsciously IA the high costs of iv-
ing. Congress is at work framing new
BILL which for sake of the country as
whole must be based upon sound and
just principles. The .uIN az The tax
will fall upon large incomes and excess
profits This is just and proper, por-
yided the main sources of new capital
are not pnched to the starvation point,
which would seriously impair the sue.
cess of future loans.
In tho financial district there is a
general undertone of optimism, based
upon the satisfactory military outlook
Some industrials declined under go,
regulation. while others ad-
tanced. Fluctuations were usually with
n narrow limits; sharp advances being
by profit taking, while most
ssues responded more readily to good
Jews than to bad, Railroad issues were
teady, receht reports showing contin-
led Improvement in earnings and finan- p
ial status. Public utiliti,s are of course
eglected for reasons well understood
government bonds were generally firm v
nd show strong undertone owing to n
lilitary successes, while Liberty issues c
'erc firmer following the report that V
ur government did nvl .ntend to pay
igher interest rates on coming issues. t
Inc striking evidence of general sound IL
ess in business is found in the record G
f failures which for the first six "
lonths of the current year showed liza Il
ilities of only $70,000,OO0, the small, s
st amount reported since 1907, when
he total was below $60,000,000. For
le month Of June the totals were the Il
ghtest OF any month since September,
DO6. The outlook for the stock market
favorable; though the possibilities
disturbing news from the front or u
'ashingtoE and the limitations of the II
oney market, render it necessary to c
lrsue a conservative policy in both fin. OF
leial and commercial operations. az
HENRY CLEWS. to