Daily capital journal. (Salem, Oregon) 1903-1919, 1919-09-01

Greece and several of the neutral pow
ers. The rate of interest proposed is
per cent net the bonds to be free of
F., taxation. The plan has decided mer-
tlts, for it is simple, would be backed
by the wealth of practically the civ
ilized world and would thus, as its au-
thor says, BE the strongest security
F, the human mind can devise. = If the
| United States, Great Britain and
France could be induced to 90 into
such an operation other nations would
| undoubtedly follow as matter bf
| self interest, and there is no doubt
| hat the bonds would be quickly taken.
TIE chief obstacle as a practical mat
Ter would be securing the necessary in
/ tcrnational cooperation.
Revisal in Foreign Trade
| The foreign trade returns for july
We're remarkable. Exports dropped to
$.70,000,000, or $350O,000,00O below
June the record month. Imports rose
10 340,000,000 the largest on record
and $52,000,000 greater than a month
ago. This reversal of the trend in our
foreign trade is in reality encouraging;
for the abnormal excess of exports was
imposing serious burden of credit up
ON the country. OF course, it is not EN-
iflrely satisfactory. to see our exports
decline, and this shrinkage does not
seem likely to continue in view of the
large demand for grain, cotton, copper,
oil, etc. But the increase in imports is
most gratifying; for it implies thar
Europe is getting upon its feet once
more, and now has goods to send in re-
turn for purchases here. This means a
turning point towards more healthy
trade relations; and, if the recovery
continues, it should aid materially in
solving the problem Of International
credit.
Financial and Commercial Outlook
In stock market values there has
been further shrinkage which could
only be expected under the pressure
OF so MANY unfavoraDle factors. Among
these are the general unrest the un-
certain labor situation, the unsatisfac-
tory status OF the railroads, the fall
in exchange, the limitations Of the
money market, the regrettable delay
IN ratlfXing the peace treaty, and the
Mexican outlook. 1t would seem as if
these drawbacks had been sufficiently
discounted by the heavy fall of the
last SIX weeks, and that the attractive
prices at which many good securities
are Offered would invite good invest
ment buying. 1t is premature, however,
to assume that he turn has been reach
ed, when uncertainties are SO numer-
Dus AS matter of fact the market is
quite as likely, to show sudden changes
Tor better or worse, as it is to settle
loWn into comparative inaction. And
yet, IN view of the present low level
u prices, there is really no reason for
General business will
probably continue active, unless chok-
I'd off by unreasoning demands. Labor
leaders if they push too hard will sure
y lnJure their own cause and bring
IN stagnation under which they will
De the chief losers. If wise they will
exercise patience and allow time for
business to gradually adjust itself to
he new level, Profiteerng which is
COMMON to all classes is being rapidly
urbed by vigilance of the government
md prevention, it should be remember
q, will be an important if not unseen
lelp in the future. The railroad out
ook is not entirely dseouraging de-
plte the roads unsatisfactory physical
nd financial conditions. In reality the
is so bad that it must soon
improve; and whether the roads are
eturned to their owners or taken over
" the government, something will
ave to be done to compensate for the
INJURIES inflicted upon the roads hv
he war. 1t would also seem that the
ublic utility crisis has reached the
olnt where the public in its own in
crest must see that they have fair
lay, due protection and be placed IN
II self supporting basis, in order to
stablish them in position that will
IT them for public service and attract
eeded capital. Activity in. the build
ng trade is becoming more and more
ronouneed; the only check to its fur
her development being the high prices
raw material and the extraordinary
ages obtained by labor. Western trade
J active, and interior department
torres report good business at all the
urge cities. Farmers are more prosper
us than for many years. Labor is well
mphyed, and despite the high cost
living large proportion of wage
arners nave more money and more
than ever before. It should
OF be forgotten that this nation has
cen injured less and benefited more
y the war than any other nation in
lie world.
HENRY CLEWS.