Daily capital journal. (Salem, Oregon) 1903-1919, 1919-04-25
Henry CleWs Says Merits Of
Issue Acne Make Invest
ment Attractive.

ne1t ATTRACTIVE.
New York, April 2S.-AnnOuneement
of terms of the new Victory lean gave
decided encouragement to the finan-
eial community. The most important
feature was that the loan would be only
$4,500, 100000; net six billion or seven
billion, as once feared. There is every
reason to believe that the loan will be
a brilliant success. Its relatively short
period. 31a years, is much in its favor,
as It will give the bonds increased sta
bility. Another attractive feature Isl
the higher rate of interest 43-4 per cent
so that with the conversion privilege
and the partial exemption from taxation
added, these bonds constitute a prime
investment, the safest and best in the
world. On its merits alone the issue
should be promptly taken, and there is
no doubt that the Loan Committee in
charge of the drive viii profit by past
experience and make il a grand achieve
ment.
Business men should particularly
support the loan, for they are in bet
ter position than ordinary investors to
appreciate the necessity of relieving the
banks from the burden Of carrying this
loan. The banks performed splendid
service in the last loans without com
pensation. They have carried the gov
ernmeut during the interval between
bond issues by taking on vast amounts
of treasury notes, which have been
dealt in in sums sufficient to anticipate
the present loan. 1t is advisable for
business men to help relieve the banks
of this huge burden in order that these
institutions may perform their legitl-
mate function in fostering industry and
commerce. Business mas been materially
restricted during the war by govern
ment absorption of banking resources,
and in proportion to public subscrip'
lions TO these bonds business will be-
come more active through the release
of funds for legitimate borrowing.
For some time past our big lending
institutions, particularly those lending
on real estate, have kept out of the
money market. There is reason for
stating that these restrictions will soon
be withdrawn and a better market es-
ablished for real esate mortgages. The
supply of housing room, especially IN
New York is much below demand ana
a decided revival in apartment ana
office building is already within sight.
The more comfortable position Of the
money market as n result Of lessened
government pressure will also affect
other industries favorably Many new
enterprises and improvements nave
been pigeon-holed for months owing TO
the war. and these will now be released.
THE chief hindrance to their launching
is the maladiustment of capital and
labor. which can only be reetitied by
mutual cooperation. To that end a bet
for understanding on both sides is
necessary Wages are high, but employ
ers do not wish to reduce them so long
as the cost of living continues and at
4be present level. They do, however, ask
for fair days work for full day s
nav. without which prosperity is impos
sible. Today the whole world is SUI,
fer;no from economic famine created
nv war. There is no cure for that tam.
line except increased production, and
there is no means of securing increased
production and prosperity except thru
hard work by both capital and labor
TO capital and labor alike the road
for return from war profits and wal
wages to normal conditions has been
exceedingly rough and demoralizingi IN
fleting a degree of economic damage
that will require considerable time ano
patience for recovery.
In spite Of such drawbacks there Is
a confident undcrtone in financial CIR
cles. Agricultural prosperity this yeal
will be unexampled, since in any EVEN
food is bringing high prices and in the
case Of wheat our government has tlxec
5be price at 1926 which means sub
sidv or extra profit to the grower OF
about billion dollars. Clothing IS al
so biph. and our cotton and wooleI
mills are anticipating a heavy dc
mand; the concessions in prices at tirs'
hands few weeks ago having stabil
ited the market and stimulated demand
Building materials are already harden
ing in anticipation Of a real estate re
vival. Copper and some Of the prin
cipal metals are naturally suffering