Daily capital journal. (Salem, Oregon) 1903-1919, 1918-07-03
German Political Leaders Are
Again Talking Peace As
Consequence

Austria means more than merely rails
ing the morale of the allies and lowering
that of the enemy. By driving the Aus
trians back across the Piave, the chance
of Austro-German domination of the
plains of northern Italy almost disap-
pears. This section of the country is the
great industrial portion of Italy. Two
thirds of that country's horsepower
and industrial population are in this re-
gion, the domination of which by the
enemy would greatly imperil the future
of Italy, both during and after the war.
Had the enemy forces been successful,
Italy would have been more dependent
upon the allies for food and shipping
than ever; thus aggregating the scarcity
against which France and Britain are
now contending. Italy has not only re-
trieyed the disaster Of last October,
which hastened unity Of the allies, but
the blow thus administered may mater
tally aid in forcing Austria out Of the
war. German political leaders are again
talking peace by indirect means, and the
evidences multiply that both Germany
and Austria are groaning bitterly under
burdens of war. Peace, however, is
not in sight, for the simple reason that
Germany is not by any means ready to-
submit to such terms as the allies are
determined upon enforcing. The certain.
ty that Germany must submit, willingly
or unwillingly, to just penalties for
the fearful crimes she has perpetrated
is made doubly sure by the irresistible
military forces which this country is
now sending across to France. Before
the winter begins there will be an Am
erican army of two millions over there
the fighting qualities of which have al
ready been proved. German scorn at
American efforts will soon turn into
fear as the millions of spirited and
trained fighting men reach their des-
tination. The tide has already turned
and is rising more strongly in favor OF
the allies each day. Another German
drive is expected soon at the western
front, but the allies express full con-
fidence in their ability to meet it. Some
ground may be lost, but this is not ma
torial, the significant thing being that
each drive shows increasing German ex-
haustion; while the American army will
soon be at the front in sufficient force
to hasten and insure victory.
The situation of public service secur-
tiles is at last receiving serious atten
ton. Some form of relief must be found
for gas, electric and street railway con-
Germs, which are not allowed to meet
increased cost Of operation by higher
charges for service. Three alternatives
are open as solution, viz; higher rates
government support, OF bankruptcy. The
first is the easiest and sanest solution;
the second is doubtful expedient that
would probably result in increased tax
alton; while the last is really unthink- |
able and not what the public either ex-
poets or desires. The federal government
has shown an indisposition to give fin
ancial aid to street railway companies,
which is not surprising; since such ac-
tion opens the door to demands which it
could not well pretend to meet. Public
service corporations should obtain their
financial aid as far as possible from Gus
tomary banking circles; and, If this is
the local municipal bod
les responsible for driving these con-
Germs to the edge of bankruptcy, should
be obliged to furnish the necessary re-
lief. Not few public utilities are sell
ing at exceedingly low prices compared
with past records, a condition which is
Of course explained by the practically
exhausted margins after dividends.
There is still remarkable tone of
confidence displayed in the persistent
resistance Of security values against ad-
verse news. This confidence is primar-
lily based upon an improving military
situation, as well as unshaken belief in
victory on behalf of civiliza-
tion and democracy. The fact that the
war may continue much longer than ex-
pected now cuts no figure whatever in
public belief. The excellent crop out
look is another factor of much encour
agement; large yield of cereals being
very probable, and indeed bumper
crop in some cases. Cotton, too, prom
ises magnificently, condition being
much higher than year ago, and acre
age about per cent larger. Fruit is
doing well and large crops are general
the country, peaches being
the only exception. High prices are OBJ
tanned for all agricultural products; so
that the lightly taxed American farmer
is enjoying extraordinary prosperity
with ready market for all he can pro-
duce. Large crops at high prices will
naturally require larger volume Of
money than usual for their handling; a
factor Of some consequence in view Of
present financial conditions. As bearing
upon the agricultural situation, the last
statement of exports is of in
terest. Our shipments Of breadstuffs in
May were valued at 10000, 900, compar
ed with $64,000,000 year ago. The ex-