Daily capital journal. (Salem, Oregon) 1903-1919, 1919-07-19

ing up the reins Of government. He
will doubtless secure a reasonably ear
ly ratification Of the peace treaty
with Germany, and it is to be hoped
will succeed in establishing the league
Of nations after some slight modifiea-
tions. TIE president viii find an ae-
eumnlation Of pressing problems await |
ling his consideration, and the latter
half of the year premises TO be a per
iod crowded with important legisla-
tiOn. Congress should realize that no
time should be wasted in petty polit-
ical disputes The whole country is
serious minded, and will tolerate no I'M
necessary delays at Washington. The
nation really wants congress to get
down to real business, TO hasten re-
sumption, to restore normal conditions
and to revive business freedom as far
as possible President Wilson is cor
rect in asserting that Germany should
be allowed TO resume trade with the
rest of the world as soon as praetic-
able; this for our own sake as much
as for others.
Crop Outlook
0ur agricultural situation is scme-
what mixed and not satisfactory.
What the world needs is abundance Of
the necessities made scarce by war
Wheat is our only important crop that
win be really abundant The acreage
devoted to this cereal was 7llS million
acres, or Ii millions above the record;
while, thanks to exceptionally good
weather conditions, the yield per acre
lis unusually high, or 1862 bushels. On
the other hand the corn crap is only
ordinary in yield; cotton will be even
shorter in supply than last year, and
oats show a deficiency. High prices
assure the farmers Of exceptional pros
lpeIity; but dear food is not likely to
please those already bnrdened BY the
high cost Of living, the only cure for
which is an increased production of
food clothing and shelter. The July
lcrop report gave the condition Of wheat
at s6.6, compared with ten year av-
erage of SIG, and the indicated yield
lis l,l61 100000 bushels, or 13j,000,0O0
in excess Of the record crop Of 1915.
Condition of corn was reported at S6.7
against ten year average Of $40. The
anticipated yield Of corn despite a re-
dueed acreage was 3,sl5,000,000 bush.
els, which has been surpassed several
years, but may be classed as a fair
yield. The indicated yield Of oats was
,403,000,000, a smaller yield than usu.
al
The Course Of Values
The future Of commodity prices is a
matter of much concern, and as long
as the rise continues discomfort is not
likely to diminish. British commodities
are falling; the London Economist s ;
index figure at end of June being
565s, drop of 800 points. Cereals and
meats were slightly higher, but the ma
! ljority of food prices there were con
siderably lower and in textiles and
minerals the declines were often con
siderable. London prices reached their
zenith in September last, since when
the drift has been steadily downward.
There has been no such movement in
the American commodity markets,
which are at about top figures and
show tendency to rise rather than
fall. Bradstreet s index number cover.
ing the United States showed a rise of
a. points in june Textiles, hides,
leather and oils made the largest ad.
vanees, while breadstuffs and live
stock declined slightly. No entirely sat
isfactory analysis of the situation here
rs possible. In some eases high prices
here are due TO scarcity. In many in
stances they are the result Of higher
wages, higher taxes and the increased
{. costs Of production and distribution.
Sometimes the pressing foreign de
mand is a ruling factor, and the ele.
ment of initiation is conspicuous in ev.
cry direction The only cure for scare.
iity is enlarged output; the only otlset
TO high wages is inereas-S ai'-iciency;
the only aniidote for taxes is economy
and the only check upon initiation is
more rigid discrimination in the grant
ing Of credit. The credit market is
really much in need Of prudent regu.
laii0n. IN this respect the federal re.
serve system has not been allowed free
operation, because Of the overpower-
ing influence Of government opera.
tions from which il is not yet free. Le-
gitimate trade and legitimate speeuia.
tion alike must be conserved by a clos.
er restriction Of credit to sound con.
Germs and sound en- erprises All great
. WARS have been succeeded By () in.
tense industrial activity, 90 great
prosperity, (3) excessive speculation.
We are already in stages one and two.
The third is still in the lsturc If New
J York Is to attain its ambition Of be.
: ing the first or second financial cen.
5 ter of the world it mus begin by prov
ing its ability to independently control
and stabilize its own money market.
London is again proving is abili y 70
maintain the cheapest and steadiest
money market in the world, e situation
VIC must meet If we expect to preserve
the prestige gained during the war
Monetary Conditions
The condition Of the money market
attracts more or less attention, espe.
cially the scarcity and consequent ex
treme fluctuations in call money. The
|. latter is. Of course, due 90 the enorm.
! 0us pressure Of government borrowing
the banks naturally pfeferring to make
+ such demands their first eonsidera
r ton. The positive attitude Of the re-
+ serve board in diseeuraging undu,
speculation is the next factor Of i'm
poriance. and lastly the unusually
heavy demand for financing legiii
y mate foreign and domestic require
:. ments both Of which are becoming in
2 ercadngly insstcnt. II Is quite evi
; dent that In suite Of the present greai