Daily capital journal. (Salem, Oregon) 1903-1919, 1919-06-21
Worlds Stability Fast Being
Reclaimed From Chaos Which
Accompanied War, Says Clews

pelnG o1fVV4,u9o POUNDS, an Llcfcaec
Of o.eoc ,esA Esunds, or nearly % per
cent; while imports vere 135,000, 600
pounds, An iaerease Of l0, 0,O00, 600 pounds
or less thzz 10 per cent As English
foreign trade is more widely distFihu-
ted than that of any other nation,
these figures indicate a tendency to-
ward worldwide recovry.
FayEgut ~ I0ans 70 Our Alses
The HugERSfiun made that eur gov
ernment virtually make a psessn. 20
the European nations of the SeY 500 ,e0o,-
600, vhfeK we have loaned 60 them
should not be seriously entertained
We caa make the terms Of payment
easy, but final settlement should he
required. TAass nations can follow the
lead Of the Swedish government Who
are now altering SIS 200, GOO twenty
rear sin peV cent. gold bonds in This
country. The Allied countries eoul1
act on the same terms, and float laTcs
loans here, and have the bonds listed
on the New York Stock Exchange
where thsy would no doub. find a
ready markes as they would be looked
upon Ias Eeund investment This
would be 4 more dignified and fitting
action and more satisfactory 10 all
parties eoneerned-
Promising Business Conditions
Business at large continues premis-
ing, especially in the AGRICULTURAL es.-
tEiets, vhiEA are banking upon the
Exceptional prosperity that the farmers
will enjoy for at least another yezi.
In the Industrial sections the HituatioR
though ysAcPally very promising is
spotty. The steel industry drags some
what and Is running only abeut % or
IS per cent Of capacity; thoagh there
Is much confidence in early improve
ment. The textile industries are very
active and prices are rising ewing 20
advances in wages and raw materials.
Cotton and wooden manufacturers seem
confident of getting their share Of
the farmers noney. SO are hhe par-
veyors Of lew priced Injuries, such
as iewclry, Paragraphs, pianos, auto
mobiles, ctr. Machinery Bpilders,
mRkers OF tfasters, harvest machinery,
etc, are also very optimistic. The cil
industry needless 10 say is exceedingly
prosperous, and svea the copper market
shows hardening tendency. Eupeign
trade, though much unbalanced, is
more active, exports Of food and raw ,
materials being very heavy, while inn
ports are yising slightly. The shipping
boom appears to be running full swing;
tonnage being Inadequate and rates
very high. Building reeoveg slowly
in spite of the urgent demand for
rental space; the difficulties being
scarcity Of money and high prices Of
building materials. The labor sitDa:
ton Is less threatening. Many ad
vances in wages have been made tn
assist in meeting high costs of living;
and the cultivation of betteB under
standing ON both sides Is proving bsns-
fical 70 all.
A More Sober Stock A7arspt.
A sharp reaction occurred on fAs
Stock BxehAnge, preeipitated largely
|by warnings Of the Federal Reserve
Board against the reckless speculation
which has been developing fdp the
last two or three weeks. Considerable
followed, especially in the.
highly inflated issues, and the technical
situation has been materially improved
thereby. Conditions outside Of the
stock market are quite as favorable
as before the reae ton, but whether the
decline has run its course or NOT events
Ionly can determine. The money market
lis serious obstacle to any prolonged
rise. Stocks had been heavily over
bought, and it is doubtful if hquida-
tion is yet complete. At any rate,
there are now two sides 10 the stock
market. Not much stimulus can he
expected from the money market
Transactions running from IA TO 2
million shares per day require very
considerable sums at current prices 10
finance them. Our government is STILL
10 huge borrower and will so continue
for months to come. Any operations
that come into conflict with national
requirements are likely 10 meet With
scant consideration. Other nations are
alsos coming here for credit; and their
demands wall have TO receive legitimate
attention. The demand for money fer
new enterprises viii also increase; so
that there is sure to be strong de
mand for funds at good rates for seme
time to come. Needless TO say the
difficulties of conducting a bull cam
paign will grow unless accompanied By
frequent liquidation such as experienced
last week. The outlook therefore is
for continued activity on the Stock
Exchange; but more frequent ups and
downs, and perhaps sharper ones than
marked the first leg of tho advance,
HENRY OlEwS.