Daily capital journal. (Salem, Oregon) 1903-1919, 1919-07-29
Economic and Industrial
World Confused By Score
of FiaIf-Baked Wild Ideas

ping. build;ag aud other Industries are
inevitable. aud number OF plants are
running 70 per cent Of eapeIity and
over. which IS more than at aay time
since the loss Of war contracts. Build
ing is becoming more and more active
owing 10 urgent demand for housing
and office room; and the call for new
industrial plant is only less urgent thaa
might be expected because g large part
Of war construction ol these lines is be-
ing taken up BY peace industries. Con
ditions in railroad traffic an, improv-
ing; he volume in he grain dissics hav-
ing already Yisibly increased. In mer.
ehandising lines summer qniCs tempo
rarily prevails, but preparations are in
order for an active fall trade. Labor
is well employed, despite the large mum
Der Of men back from the war. The
unemployed are few, and adviees from
many directions report scarcity Of
help which is undoubtedly true A con
siderable number Of alien laborers are
returning 10 their native lands, and
more are expected to follow, but not sol
many as extreme estimates indicate.
The outward movement is swollen by
those held back during the war. The
certainty Of securing better work ana
wages here than in Europe will, how.
ever, be deterrent upon any excessive
efflux. The high cost Of food, clothing
and shelter is an important factor in
the outbreaks Of unrest which appear
here aud thore in the form OF strikes.
Such conditions are the inevitable re
suit Of five destructive years such as
the world never saw before or ever
imagined possible. The only cifectual
curt for such famine is more economy
and more product. Only ON such lines
can the worldwide vacuum be filled
Unfortunately the world is turning its
back for the time being upon sane
thinking aud sound action. II is still
s0rely confused by the multiplicity Of
half baked ideas; is prone 10 extIava
ganee aud unwilling to relieve The situa
tion by larger product or more work.
Initiation does not seem to have run its
course bv any means, and high prices
coupled with imperative reconstruction
insure prosperity for many montas i'll
not several years ahead. As long as the
movement Is so buildcd as to prevent
serious malGdjustment and to preserve o
fairly normal balance in the various di. !
visions of industry, there is little imme
diate danger. Conservative leadership
will prOlong the present wave of pros.
periiy; while reckless expansion would
bring it to quick end
Germany's Future.
Germany's resumption Of trade may
be rather slow affair. In the first
place, German purchases from the Uni.
ted States will be restricted at first TO
sheer necessities, because Of inability to
pay ia goods or gold Our purchases
from Germany win for some time bo
small because the hostile prejudice
among consumers makes il hazardous
and improbable TO cerry stock of
German wares. This applies TO other
countries even more than the United
States. One of the most serious ques
tions will be that Of credit, though il
is stated that a loan Of 2j TO 80 mil
lions could be arranged at once. Ger.
many, however, is facing difficult times
calling for much hard work and sncri.
flee. There is talk already CT passing
the interest on her public debt, which
IL really done would amount 10 repudia
tion or eonfiseation, and serious EN-.
barrassment of many leading financial
institutions. There is, however, one
compensation, even for Germany, and
that Is relief from the costly burden
o fmiltarism which finally wrecked the
empire. That alone will materially aid
the recovery Of Germany when aer peo.
pie are ready to adapt themselves to the
new conditions and ideals which domi- |
nate the world.
Weakness in Foreign Exchange.
Foreign exchange continues unsettled
and weak. Sterling again touched the
lowest on record, aud francs and other