Daily capital journal. (Salem, Oregon) 1903-1919, 1919-02-08
DISTURBANCES OF UNUSUAL
VARIETY FACING COUNTRY

ter, after allowing for taxes. 1t is pos.
isible that the shrinkage of business may
ieontinue for some time to come, and
the question Of taxation looms large as
lit does in the case of all the industrial
concerns. No little disappointment is
manifested at the refusal of congress
to moderate the burdensome excess prof
+ its tax, which in many instances will
force reduction in dividends and ag-
gravatc labor difficulties. The new rev.
enue bill will shortly be issued and q
number of industrials have already re-
Elected its provisions.
Railroad shares seem neglected,
though steadier than industrials despite
their unsatisfactory position. Several
of the larger trunk lines reported lib
eral gains in gross earnings, but an
enormous increase in expenses arising
from wage advances resulted in serious
net losses, which as long as the Toada
remain under government control viii
have to be made good by taxation.
Great uncertainty exists as to the fu-
ture of the roads. Mr.. McAdoo believes
in extension Of present government con-
troll for five years. The Associated Rail
way Executives favor the roads being
returned to their owners twenty one
months hence under new system of
government supervision. The Interstate
commerce commission favors a eontinu-
alton of government control through its
powers, and as TO congress nobody yet
knows what it really would do. Public
opinion certainly does not favor govern
ment ownership, and so for the time be-
ing there is no policy except that of
drifting.
General business is fairly active, al
though hesitant owing to necessary re-
adjustments. When these are accom-
plished a more settled basis will be
reached and some recovery is antici-
pated, Moreover, spring is not far dis /
tant, when outdoor employment and
construction work can be resumed upon
more active scale. There are strong
hopes of improvement in the building
trades, which have been practically sus- t
pended during the war, resulting in
marked shortage Of housing and office
accommodations. The degree or employ
ment will, of course, depend largely up
on the cost Of materials and labor.
Wholesale prices are generally declining
and this tendency Is creeping gradually
though slowly into the retail divisions.
Much interest was excited by the cut
ting of 66 per cent in export freight
rates by the shipping board to meet a
similar cut in British rates. This will
stimulate export trade and
induce g. better demand for commodities
and manufactured products for foreign
In this connection the 70
port that Great Britain contemplates
placing restrictions upon number of
imports into the United Kingdom is re-
grettable. II may tend to restrict our
shipments Of machinery, tools, instru-
nents and many other articles, all of
which is reversal Of Britain Is tradi-
.ional liberal trade policy. If carried
nto effect it will naturally provoke re-
.aliation on this side and impair the
feelings lately developed be
weon the two nations. Incidentally 1t
will stimulate the movement for high
II tariff in this country.
Now that the money market has been
reed from artificial regulation, some ,
elief prevails in the financial district !
Though the situation has not been par !
icularly favorable to stock exchange !
.ctivity. On the other hand quotations 1
ave declined 10 to 20 points ON many !
4 the leading shares, which measure q
bly, discounts present conditions, and 0
vould prompt good rally should more I
avorable developments occur. Transac- I
ions in liberty bonds continue on an a
xtensive scale ,and at current low prize v
s these issues are exceedingly attrac- '
i've investments to conservative buyers a
he treasury has already exhausted tho
ast loan and viii be obliged to depend q
pom the AZ per cent certificates until q
be next loan, which is scheduled for 2
April. Until that is provided for the
loney market will remain close and
unds available for other purposes win y
Q scant, HENRY CLEWS. =
u
Cleveland Nineteen thousand =
i've hundred loads Of snow were re- 4
lovcd from Cleveland streets last