Daily capital journal. (Salem, Oregon) 1903-1919, 1919-08-09

-fNN AHtAs AN-. 49, &c NdNilONAfN
latitude assumed IN these adviees for
the past three Ueesa has been amply
{ Justified BY recent events. Values have
been considerably unsettled and fell
& several points. Rumsrs that the federal
reserve bank would sass steps toward
restricting speeuia:iea ailtd the de.
cline; fear of such acton having quite
as much effect as ths asiaality would
probably have DONE As Il result spec.
ulatiye ardor on the bail side was ma
ter'aly lessened, End l.il ;Cation on q
larger sealc than fo- several weeks
followed. There was teaily no change
in tie general situation % cause the
safe decline, except that in face Of such
rigid monetary limitations il was IN
safe TO push the advance further al this
time. While the technical position OF
the market has been somewhat improv.
ed by the liquidation. still there is as
yet no real founda'ion for rcsuming
the rise.
Activity in Business
The country is jus. entering the per.
iod of greatest bush ness activity; the
harvest has begun IN earnest, and
funds will be in demand for moving
the grain, fruit and eottJl crop dur
ing the next three months at east. This
harvest will prove an nnu4ualy prof
liable one for the agricultural districts
IN spite Of WELD fa''ng somewhat he.
low expectations. Western merchants
and eastern manufacturers alike VII
feel the consequent stimulus in a laee
er demand for all necessities aud many
luxuries. II must be remembered enter.
prise is rcyiving; many new ventures
are starting; old concerns are enlarg-
ing or improving .heir plant; houses
and office buildings are being started
on a growing scale: almost overnight
we have become the second maritime
power in the world (a fact far from
being properly aprreciated); our ex
port trade is growing at fabulous
rate, and our iron trade has scarcely
had time to shift from war basis to
q peace basis before / finds itself tax.
cd TO meet oncomng orders for both
domestic and foreign trade. Demands |
for shipbulding, automobiles, constme.
ton, engineering and export trade are
already taking 80 per cent of the steel
output. and will soon REQUIRE more As
lyei the railroads have not purchased |
supplies with any freedom, and their |
demands for rolling stock and other
equipment will p,oge enormous owing |
to the urgent neel of replcnshing af
ter prolonged war strain also a period |
Of enforced depreciation and starved
improvements. Should The status of the
railroads be fully restored as TO earn
ings capacity aud credit great de.
Velopment may be looked for in this
important industry, which owing to un.
wise legislation and harsh control has
made little or no progress in q decade.
The railroad system Of the United
States was probably never SO far be.
hind in public efficiency as at present.;
and for this condition the country has
to thank unintelligent and unjust rep
resentatives who preferred catering 70
public prejudice rather than public con.
veuicnce.
Giving Credit to Europe
Renewed weakness in foreign ex.
change impressed he financial com.
munity with the necessity for prompt
action toward Financing our export
trade, The demand fer American nro- I,
duets is pressing From all parts of the
world shipments Of food and raw ma.
.erlals are upon an ensin Gus and in J
'reasing scale. Imports increase very O
'lowly, and our tahings Of foreign Sc =
'uitles IN the shape Of government o
ssucs are totally inadequate TO affect
he balance, II we ave TO sell our sur IN
'lus and do our biz toward the reha. /
of Europe, credi. must be 4,
sven on large scale Ii IS estimated !;
hat within the neat twelve months we l
hall have to allow credit Of at least
y OOOe0O,o0O to European buyers. Now =
hat the war is end |, private and not .
government agencits should provide re- ,
let Several important luarf have been q
made 70 foreign c0nntres, and more q
re 10 follow. This week the French a
.twrnmcnt ahnounecd lbe eontemplat. a
a issue Of $4,000 eco treasury notes
With a maximum weekly maturity of ii
b 100000 for the purpose Of handling 81
Is sixty or ninety day bills on the p
anne line as the British Treasury. This i
an should afford seme relief. and, i
So the same means cou c adopted =,
" other nationaliiics. Belgium is now :,
eeklng financial aid II IS understood -
hat local bankers ase about agreed up
u plan for stahilizue axe ange, and 8
hat its announcement will not be long %
elayed. %
Railroad Outlook h
Transactions in railroad shares con. p
inuc upon a limited s,aii mainly be. IA
ausc Of their stahiimlion hy gov.
rnmcut eontro aud guarantee. This .,
tate OF inertia, howesei, cannot last 4,
Indefinitely. Befoe the end of the sf
urent year the roads VII probably 70
q returned to thor owners in accord -
nee with the pledge made by Presi. n
eni Wilson whom .aken over by the
oNcrnment This means great changes =
b conditions under wlish the roads
ill operate in future. Thcy will no
'nger be under Unit ceptrol. Some Of p
be operating innovations introduced or
y the government will remain, hnt NJ
amy win not. The public Is disippoint r
| With government mace q ment which es
doubled charges and laixed the ser. IN
lee : 70 the cause Of government ea
IS at lower ehb. than for III
'ny wears. Under gqi -aaent con,rll "a
me roa1s samed aaj tihefs lost by n
hanged methods Of routing and oper.
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