Daily capital journal. (Salem, Oregon) 1903-1919, 1919-05-03
forecast of Better Financial
Conditions Fulfilled Clews

the other; or possibly through both,
until O more normal balance is reached
Initiation of securities was of course
prevented BY monetary restrlctlOnsi
also by the extraordinary uncertain
ties attending all profits whether Of
railroads, industrals or public utili-
ties. War profits were never really re-
Elected in market values. The outlook
however now is that the railroads Wlll
do better; that many of the lndustrlals
will make larger earnings, and that
even public utilities have q Better
chance of fair play.
IS. The mania for government own
ership is at lower ebb that at any
time since its birth. Through costly
experience. also by deterioration IN
service of railroads, steamships, tele-
graphs and telephones, the country has
gained lessons of inestlmabie value III
soeialistie theories. Heavy as have
been the losses thus incurred, thoy
have probably saved us from far lnore
serious consequences had these proper
ties been permanently taken over by
the government.
| 10. Our security, money and foreign
Exchange markets, have been almost
completely restored to natural dree
dom bv removal of artificial war re-
strictions. This affords more freedom
and safety for personal Judgment than
was possible when transactions were
subject to the prejudiees OF ineXper-
fenced or incompetent public Officials
! 20. The new congress should be
drought TO realize that government OK
travaganee and unnecessary expendl
lures must stop. The whole wofio
must and will eeonomize for some
ycars 10 come before it can fill tht
vacuum Of ordinary necessities, OF
which this country is the only nation
possessing a surplus. Herein lies much
OF our present great good fortune.
Reasons for Discrimination
Such in brief are the elements upoI
which the present advance in the stool
market is based. Naturally confidence
lis widespread, and among business mer
generally there is a belief that tn
country is facing period Of prosper
lity lasting one if not two seasons
There Is danger of optimism running
70 injurious extremes after such a lonl
period of rigid repression, but there |
no immediate prospect Of such deVel
opment. As a rule stocks are flrni:!
held and there is no general disposi
top to let 60 at present prices. Iher
FL probability Of increasing specuia1lN
activity, which means more liberal pro
il taking and sharp reactions foll0MahI
nnfayorable news. Such symptom
have already developed in few OF Tn
indnstrials which advanced most RAJ
idly and buying has partially shiIte'
TO hitherto neglected issues, lneiuoih
the railroads which thus far have shai
cd .slighflv in the general improvement
Pcnds with their fixed returns, az
facing stiff rates for money, have rt
eeived relatively little attention 4
comparison with stocks that promls
increased returns.
Monetary outlook
Tho money market is firm and va
: bear close watching, since the oahh
may at any time see fit to curb exce'
S,ye speculation by eurtailment 2
z credit. IL should also not be forgo'
ten that we must prepare ourSeirt :. !. !
for extending very liberal c%redi, credit
abroad. because Europe needs iarg
2 quantities of food and other produe'
for which she cannot pay N elthe
goods or gold. Our supply Of the "a
+ ter is 20 redundant that We do not WIS
4 TO enlarge it; consequently there Is 7
+. other course but that Of giving ion
I credits. or investing freely in fore,g fore,
z enterprises which would still furth'
J strengthen our position as eredit'
! nation. Fortunately the cessation
bond issues and the egentuai drop
t taxation will place Us in q most "a,
orable position for aiding Europe
{ this respect. The Italian crisis, regre
I table o. II may be, has not yet prove
r stock market factor. The effect