Daily capital journal. (Salem, Oregon) 1903-1919, 1919-06-04
ClelUS Sees Reasons For
Caution and Hope In Post
War Financial Situation n

another year viii consequently be sim
ply tremendous and the only impedi-
menttO widening mercantile activity at
this moment is a prodnent hesitation Of
distributors to stock up freely at cur
rent high prices. But a great con
sumptive demand is in prospect never
the less, the only cheek upon which wfI
be frequent seaat supplies and inorS-
nately high prices that are already act
ing as an important restraint upon buy
ers.
The Railroads and Congress.
The agricultural situation is also a
very important factor in the railroad
outlook, which otherwise would be very
diseouraging. 1t is eredibly stated that
the railroads will run behind to the
amount of sl,750,OO0,0O0 before return
to their owners; sum which congress
may be asked to appropriate in fulfill
ment Of its promise to restore the roads
to their owners in as good condition US
when taken over. This promise alone
saved the roads from financial disaster,
and, when to this is added the prospect
Of good business next fall, il is seen that
their future is much better than appears
on the surface; hence their recent
strength. The next important eonsidera-
ton in connection with security values
is the attitude of the new Congress to-
ward business, which is more reason
able and capable than its predecessor.
The necessary appropriations will GER
tainly be made; the railroad problem
of course will be tackled, and some im-
in the method OF taxation
will be accomplished, even if no redue-
tion in amount is effected. Tariff leg
islation is possible, but it win be diff
fieult to devise any increase in rates
that will add to necessary revenues,
when imports are already Gbnormaily |
light and not likely to show much in
crease this year The fewer the chang |
es in the tariff the better. until more
settled conditions are reached
Feeding Europe.
Foreign trade returns in detail show
some very striking changes. Dunns
the last ten months exports OF bread
,tuffs reached $739,000, 600, an increase
,f $221 900 900; end meats totaled 5000
100, ,00O,a gain of $410,00O,00O. Here IS
total increase of $63l 100000 in food
tufts, TO which might be added another
tenn. $7O,OOO,OOO gain in cotton OIL
hipments. While portion OF the ln'
,rease is due to higher prices, IT is very
,vident that our efforts to feed starv,
ng Europe have caused an expansion OF
'nIly s70O, 900, 900 in our food exports
'or the ten months ending April.
Firm Time Money.
The monetary outlook is fairly sat
sfactory. Our government is issuing
.reasury notes quite freely, and the
ranks are taking them without Difficult
v. having somewhat lessened their
,oIdingsof government bonds. In the
,arlv part of June the second Install
nent on the Liberty bonds will become
lue. Foreign governments are likely
o seek credits in larger sums; and the
necessity Of financing our export trade
m definite lines is also becoming more
PRESSING, in proof Of which is the gov
,rnment sentiment favoring the erea-
ion Of huge banking organization I
or thispurpose. Local applications for {
apital are becoming more numerous,
nd within 4 few months the demands
or erop moving will assert themselves
ot to speak of the expected greater
ctl~ity in business, and the effect Of
igh values which absorb banking ,
unds. The chances, therefore, favor !
irm money for several months to come. !
Reactions in the stock market were ,
light and a strong undertone still pre- I
ails, the upward movement apparently 4
ot having exhausted itself by any
ieans. Steel issues maintained their