Daily capital journal. (Salem, Oregon) 1903-1919, 1919-05-15

somewhat but not in sufficient volume
TO pay for exports; and it is one Of the
problems Of the future as to how far
Europe will be able to pay for the i'm
mense quantities of raw materials that
she requires. There may be a limit to
our accepting payment in securities, in
vestments or foans; a contingency that
would quickly check our exports. For
tunately, however, Europe is reeuper-
ating and becoming better able to send
merchandise here. The outlook for ship
ping continues excellent and the sup
l.ply of freight is still far greater than
available tonnage. Ship owners expect
great prosperity for months to come.
Victory Loan to Success
Attention in the financial district
has been very largely devoted to push
| ing the victory loan. At periods sub
seriptions Jagged disappointingly ow-
ing to the absence of pattiotie stimu
lus which was a powerful factor in
previous loans. From the start, how
ever, there was no doubt as to the ul-
innate success of the loan, because of
the knowledge that the banks and 9th
er financial institutions would step in
to the brcech and make good any fail
ure in popular subscriptions. 1t IS I'M
fortunate that the banks should have
been obliged to assume 50 much Of
the burden, but there is no doubt that
they will be able to distribute this loan
much more rapidly and effectively
than the previous issues.
The Railroad Lesson
Our railroad system is still suffering
from the uncertainty Of government
operation. According to Director Gen.
eral Hines, the deficit in operation Of
the roads during the first three months
Of 1919 was $l02, 100000 This is
discouraging loss which the govern
ment will have to assume and pass on
to the taxpayer, who, TO his sorrow,
finally pays the bills for all such cost
ly experiments. The country has still
to figure upon the losses from opera
tion of express companies. telegraphs
and telephones taken over during the
war. II is hoped that the railroads
may recover somewhat when the au-
tum and winter traffic arrives, VII eh
will undoubtedly be heavy owing to
big crops and consequent agricultural
prosperity. It is decidedly uncertain
as 70 whether the railroads can obtain
anv material offset 10 increased ex-
penses through higher rates because Of
potential competition by Panama canal
on the south, the Canadian lines on
the north and the water routes on the
coast and inland waterways. At The
same time railroad securities are firm
" held in the confidence that they
will share in the general Improvement
arising from peace conditions.
Legislation in the Next Congress
Congress will be called in special
session May 19. Its first function will
be 10 organize. an operation that may
be carried through in less than two
weeks, though ordinarily requirIs. a
longer period, especially when the ap 1
p0intmcnt of new committees is in /
question. in all probability it will /
prove a highly interesting session. /
The first subject Of importance will !
be that Of the heavy appropriations J
left over from the last congress. Nez /
in importance will come the question
IF revenue, taxation, tariff, etc. The
Of peace will doubtless af
ford other problems for congress to
adjust Of a social and industrial as
well As international character, and ;
President wilson's return will become
more and more urgent. Il is nov stat