Daily capital journal. (Salem, Oregon) 1903-1919, 1919-09-06
Economic Situation In U. S.
At Present Hard To AnalyZe
Satisfactorily, Says Qews

ing power OF tne d0llar. Ihefctore,
if we have cheaper living present
wages will be more than adequate on
account of the increased purchasing
power of money. This eruption of
strikes all over the country, in fact,
all over the world, is becoming craze
and if continued in will end in detri-
ment to the laboring classes rather
than benefit. The masses in this coun-
try derive the greatest benefit in
times of prosperity, not in times OF
adversely such as these strikes if left
to work themselves to the end are
! likely to bring about. Learn the fate
of Germany, Russia, and Austria-Hun-
gary, all before the war prosperous ma
tions, but by the war Frustrated almost
to the dust, while the rest of the
world was crippled most seriously,
even including ourselves. What was
the war that produced this great dis
astcr? Nothing but big strike, and
which we all know now was % signal
failure for the originators of it. If conl-
! mon sense had prevailed all the vexea
questions could have ben amicably SET
tied by arbitration; and all labor trou-
bles could, and should, be settled in the
same way.
Needed Legislation
Delay in ratifying the peace treaty ser
iously interferes with the progress of
much necessary legislation. The Edge
bill, which aims to provide means for
Establishing foreign credits, is practical
1xr OF or 1ut,l o1fbnunL
tie opposition and. the need of passing
the measure is urgent. Our export tradt
may suffer, because Europe is quite UNI
able to pay for needed good IN either
money or merchandise. For our own
good we must sell on credit, and the
sooner some adequate plan is put inte =
execution the better for all concerned.
Railroad plans are still in process Of for
nation. Government ownership and Z
other socialistic proposals are fortunate
ly no longer seriously considefed; and
the present drift of both public and ex-
ecutive opinion is toward a plan that .
will accord fair treatment, not only to
labor but also to the public and to the
owners of the railroads; the last two di-
visions having been almost entirely for
gotten. There are also number Of
shipping bills before congress which can
for carly consideration, if we are 10
avoid Injurious confusion in our newly
developed shipping industry, which is
Handicapped enough without having to
face laggard and unwisc legislation. NJ.
The Drop in Exports.
Tbo .1oa.n,.a oe -a onn, naa
July exports, compared with June, is
largely due to the shrinkagc in agricul-
tural products. In breadstuffs there
was a loss of $63,000,000 in meats $70r
100000, in cottdl 81, 100000, in mineral
oil $10,0o0000 and in cotton oil $4,000
600. These five groups represented
total loss of neatly $l60000, ,000,, or al
most one half of the:total decrease. Re
liable details are not yet available as to
what countries lessened their purchases
Ill the United States, but it is probable
that arrangement of exchange, and
growth of large crops abroad than ex
pected had considerable to do with oul
lessened exports.
A Good Business Outlook.
Business conditions, generally speak
ing, are hopeful, Should labor settle
down to a more normal attitude i'm
provement may be expected for the rea-
son that mahy enterprises and enlarge
meNts are still pigeonholed awaiting
more stable conditions. The Amerlcan
harvest is progressing, and while on
yield of wheat is below early expecta-
tions it is much above the average and
will be highly profitable in the aggre-
gate. The corn crop viii also be large
at very high prices. Cotton is short
crop,' but a good surplus is left from
last year and growers of this staple are
also making good money. As a whole
the farming classes are exceptionally
prosperous. So, too, are the industrial
and mercantile classes. The high cost
OF living question, which is chiefly felt
IN the cities, seems to be near the apex
and turn downward should not be far
distant. Agitation in the press and gov
ernment activities, though certainly pre-
venting profitteering, are not much of
success thus far in lowering prices,
which can be accomplished only by per
slstently increasing the product. The
latter will be a slow process, for no gov
ernment, however powerful, can perma-
entity defy the laws of nature, especial
ly that Of supply and demand. The
monetary situation is fairly satisfac-
tory, though the loss in bank reserves
last week produced temporary furry
IN rates. The position of government