Daily capital journal. (Salem, Oregon) 1903-1919, 1919-02-08
Plenty Of Work And New En-
terpises Await Reconstruc-
tiOn Competition.
New York. Feb. l. 1919.


AT the moment there is an unusual
variety of disturbing conditions in the
business world. These include the sp-
pearance of differences in the Paris
peace conference, which, though not inn
portant, may tend to make an early
settlement difficult; the general confu-
sion aroused by conflicting policies re-
garding the home railroad situation; an
unsettled business situation due to re-
adjustment to peace basis, snd threat
ening labor complications resulting
from the high ocst of living aud the in,
crease of unemployed. 1t is many years
since business men faced such g. con
glomerate mass Of uncertainties; and
the fact that confidence is SO we'll main
tanned against such adverse circum-
stances is quite remarkable. It may
be impossible to reach any definite con.
cIusions as to what viii happen during
the next few months; but there are at
least few reassuring facts which justi-
fy this substrata Of confidence; for
there is plenty of work in sight, plenty
of new enterprises waiting to be launch
ed, plenty of capital ready for invest
nent, and plenty Of labor ready for
employmnte. The main obstacle to free
operation Of thse forces is malEdjust-
ment The worlds machinery has been
gravely disrupted or broken, and its re-
construction involves widespread confu-
sion and loss. Government control was
necessary evil ss long as the war con
tinued and ito undoing proves a vastly
more difficult task than it's eonstruc-
tion. 1t should be remembered that it
took over eighteen months to mobilize
our industry upon war basis; while
scarcely three months have been spent
in an almost complete rehabilitation.
This is astonishingly rapid work; too
rapid perhaps for comfort; and exces-
siye friction in such hurried moment
is inevitable.
One Of the most serious obstacles to !
reGdiustment is the deflation Of values. I
The ideal plan would be for an orderly,
equal and simultaneous shrinkage for
commodities and wages, but that is i'm.
possible. Revival in industry, now thct
war contracts are ended, cannot be ex-
peetcd until raw materials and wages
have reached more normal reltions
Wages will inevitably resist contraction
unless the cost Of living falls cores
pondingly; and it is question largely I
where the adjustment process shall first
begin. There hGs already been a con
siderable fall in many commodities, but
food remains high, and the warking-
man finds himself unable to make any
sacrifices except in purely war wages,
which automatically dropped after the ar
inistice. The only way out Of present
difficulties is working them out; q pro-
cess that will require much patience
and endurance in overcoming postwar
confusion. 1t must DO expected that
those who usually take the initiative
will show much conservatism; and yet
conditions are 50 sound and
encouraging ss to warrant q hopeful
spirit for the future, despite an unset
tied present
The United States has emerged from
the war relatively stronger than any
other nation. We occupy far more {
powerful position than ever in our his ]
tory; and we have enviable capacity
for furnishing the things which other .
countries sorely need Our credit is '
sound; our banking system strong; our !
foreign trade enormous; our granaries I
well stocked, and our mills well equip Z
ped. When present friction has worn 9
itself out and the readiustment is rea- t
sonably complete there il no doubt the Z
country will take a big forward leap, !
and prosperity should become. more U
sbundant and more widely distributed I
smong all concerned,
A depressing factor Of temporary in y
1uence was the reduction of U. s. [
steel's dividend from 13 per cent to b
} ? per cent rate, the result of comm
Jed shrinkage in business since the
,lose of the war. The net earnings of t
he company for the quarter ending De n
,ember 31st were $56,354, 900, compared v
With $42,961,000 for the previous quar-. n